But despite the lengthy review of the policy - it highlights the need for new housing, affordable housing and the rehabilitation of old housing - some in the development community find it lacking.

The most controversial portion deals with affordable housing.

In an effort to spread around low-income housing throughout the city, and create mixed-income neighborhoods, the proposed policy says the city won't subsidize new condo or apartment projects that are 100 percent "affordable" - except under special circumstances. That means it won't fund buildings where all of the tenants make less than $49,100 (for a family of four) or less than $34,400 (for a single resident).

Councilwoman Nancy Saxton, who is running for mayor, is the main proponent of the idea. She acknowledged that low-income housing providers "hate" her for it, but "I just think that what we want for the city and what's best for the city is to do a striation of incomes in the projects we fund," she told fellow council members Tuesday.

Salt Lake County Mayor Peter Corroon, who was a housing developer in his pre-politician days, is one of those opponents. He said he has "grave concerns" about not funding 100 percent affordable projects.

He said the rule would prevent "many" affordable-housing projects from being built, hampering the ability of the working class to rent apartments or buy condos.

"This makes no sense," Corroon wrote the council, which is not ready to sign on to the concept and will vote on the policy later.

Most developers seeking subsidies aren't building 100 percent affordable projects, according to LuAnn Clark, director of the city's Housing and Neighborhood Development division.

Still, had a policy been in place, the council would not have funded two recent projects: Providence Place, a 125-unit apartment building to be built at 309 E. 100 South, and 200 West Apartments at 925 S. 200 West (which Corroon helped develop).

Housing providers did laud the council for desiring to find a permanent source for the city's $4.5 million Housing Trust Fund, which subsidizes the projects. But developers said the council should actually find the source.

The Crossroads Urban Center, which advocates for low-income residents, said the city should require developers to build affordable housing as part of every project, or donate land or money toward low-income projects. The council considered, and rejected, requiring it for housing around transit stops.

The council plans to reject Mayor Rocky Anderson's desire to eliminate the current practice of requiring developers to replace housing they demolish. He believes the policy could hamper good developments, according to Clark.

But council members plan to strengthen the provision. Today, developers sometimes have to pay only $3,000 if they don't replace the housing.

hmay@sltrib.com