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Section 1205, Minutes December 18, 1978 Page 4 is not owned by the Senior Service Board but they have an option on it. Mr. Schneider asked Mr. William Thomas, 216 Thornton, Rock Hill, to come for- ward. Mr. Thomas' firm is providing consulting services to the Senior Ser- vice Board for the pending submission of the application under Section 202 and Section 8 of the National Housing Act. He said that HUD would expect the sponsoring organization to be financially responsible even though the financing would be 1007. of the loan. Mr. Thomas said one of the primary responsibilities of the sponsoring organization would be the ability to provide services other than just shelter. Mr. Thomas also said that a unique feature of the Section 8 plan is that an escalation clause in regard to rent is a built-in part of it, and escalation of rent is tied to cost of living increases in a specific area. He also said HUD would advertise within two weeks that these funds are available. Mr. Thomas answered some questions from Councilman Kelley regarding the time- table for applying for the loan, and related that it is a competition, that is, a number of organizations may be applying for funds. Councilman Sabol said he feels that an apartment building for the elderly on this site is preferable to what has been there in the past. In response to a question from Councilman Glickert, Mr. Thomas said that in order to participate in the Section 8 grogram, a community must endorse a proposal as being in conformance with the housing assistance plan of that community. Mayor Mooney and Councilman Adams also questioned Mr. Thomas about the time schedule, feeling that the Council does not want to be rushed on this matter and also to let the community know what is being proposed. Mayor Mooney asked if this housing could be restricted to those who are already residents of University City, in addition to the age and income restrictions which HUD imposes, but he believeithe management of the building could impose it. Councilman Metcalfe also would like to know about restricting or favoring citizens as tenants who already live in University City, Mr. Thomas said it had been his experience that H*JD feels that citizens living in the area where the facility is being built would be considered first. Councilman Metcalfe commented that Council should try to ascertain where the demand for this housing is coming from, not specifically but generally. She would like to see this documented so Council would have some hard facts on which to base their decision. She was also concerned that housing vacated by people moving to this new facility would be occupied by more senior citi- zens, thus increasing University City's senior population disproportionately with other groups. In response to several questions, Mr. Thomas thought this facility would not - be ready for occupancy for about two years. He said the only urgency is that the sponsor must have the support of the Council. Councilman Lieberman asked if it would be possible if, after Council schedules a public hearing, for the Council to have a copy of all of the contracts which would be entered between the Senior Service Board and HUD which author-