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HOUSING NEED Housing Aide Dave Ransom read part of a report assessing Redwood City housing need from recently released 1970 Census figures . The report ' s high points were that : * In round numbers , between 4200 and 4800 Redwood City renter households reported in 1970 that they were paying more of their income in rent than federal guidelines consider compatible with maintaining health . * As many as 6700 Redwood City families and "unrelated individuals" may have found themselves without purchasing power sufficient to buy or rent adequate dwellings at prices they could reasonably afford . * The great majority of these were at income levels which do not qualify for the moderate-income federally-assisted housing programs currently being sought after in the Midpeninsula . * The federally-assisted homeownership program ( " 235" ) has not been broadly utilized in Redwood City . Even if it was , those with incomes too large to qualify for the program, but too small comfortably to assume mortgages on homes costing $25 , 000 or more would be condemned to rent by a severe shortage of homes valued at less than that . * Many Redwood City homeowners whose dwellings are valued at less i ._ .-. " forced.. t t / -. than ;25 , uuu may be forced homeowners --low/moderate --income elderly people whose homeownership is a financial burden not a blessing , but who cannot find adequate and reasonably-priced substitute housing in Redwood City . An even greater number of Redwood City homeowners now in mid and late middle -age may find themselves "forced homeowners " in the next two decades . Urban Affairs Specialist Rivas explained that in the Bay Area , the rent schedules for "236" federally subsidized multi -family units are the highest allowed by law. This means that a four-bedroom apartment goes for $190, a two-bedroom for 160 . With land and construction costs as high as they are , it ' s hard to make " 236" projects go, even so . The " 236" homeownership counterpart, " 235:' is set at a maximum mortgage of $22 , 500, which considering the development cost , leaves very little for the developer . San Francisco HUD was assigned 2200 "235" units for the Bay Area , but turned them back to Washington , he said . " 235" works only in outlying areas , which are too far away to service the people , and subdivisions take only 25 percent "235 " units at best . Consequently , he said , people shouldn ' t expect Redwood Shores to be the saviour of the community in respect to low/moderate-income housing . Bob Norris referred to the minutes of the HCC ' s August 22 meeting in which City Manager Jim Pales said that "he did not want the City to get involved in housing ' a toe at a time ' and would rather the Council deal with a comprehensive housing proposal than go into it piecemeal as the federal government so often MINUTES HOUSING CONCERNS COMMITTEE OCTOBER 25 , 1972 PAGE 4 OF 5 •