PEABODY – Armed with just a podium, Director of Community Development Jean Delios braved the battleground of Wiggin Auditorium Tuesday night in a rather heated discussion regarding what Peabody should do with $1 million in Inclusionary Zoning buyout funds.The money has been sitting in the bank for over a year now when developers of the Fairfield Apartments on Dearborn Road opted to pay the lump sum in lieu of building affordable housing units.Delios said she would like to see the money put toward a pilot program that develops affordable housing and reduces the number of distressed properties throughout the city. But some councilors would rather see the money used to further fund and promote current housing assistance programs.Delios’ push for the pilot program comes in fear of what could potentially be developed on the site of three dilapidated Park Street units.”Under BC zoning, (a private developer) could build a high-rise and that’s the thing we don’t want,” she told members of the Industrial and Community Development Committee. “The building wouldn’t have to be neighborhood friendly.”Delios’ program would allow the city to have slightly more control over what developments are put in place by serving as a second mortgage financer. Investors and banks would come up with the bulk of the financing to rehabilitate abandoned units, and the city would finance the rest as a low interest loan. She said they would require full repayment – unlike the current Housing Rehabilitation program – which would be recycled back into the fund for others to use.By using the full amount of available funds, Delios said a maximum total of eight units could be built, keeping in line with the community. However, only a mere two of those units would be designated as affordable housing.”If it’s affordable housing money, then use it for affordable housing,” said Councilor Arthur Athas. “It doesn’t make sense, in my mind, to use the money and only gain two affordable housing units.”Athas made a motion to put the funds toward the city’s current Housing Rehabilitation program.”It’s a worthwhile program that not enough people know about,” he said, adding that the money would go much further helping nearly 40 families, as opposed to just two, if they advertised what the city has to offer.Councilor Anne Manning commended Delios for “thinking outside of the box.” She said these boarded up buildings and abandoned homes are a haven for crime and a public safety hazard.”It’s innovative thinking like this that is going to bring us out of plight,” she said.Councilor Ted Bettencourt, Jr. suggested keeping the issue in Committee until May 7 before advertising any available funds, as they have not yet been appropriated. It was later agreed upon during the following meeting of the entire City Council.