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�. � ^�g <br /> V. CONSIDERATION RECEIVED AND REASONS THEREFOR <br /> Under the terms of the Agreement, the Developer will acquire the Property from the Agency at <br /> no cost, (through a Land Grant valued at $807,500) and develop the project with an Agency- <br /> funded Development Grant of $321,000 and an estimated Fee Subsidy of no more than $74,000. <br /> No consideration will be received by the Agency in return for its financial assistance to the <br /> Project as the project's economics are not strong enough to support a purchase price for the land, <br /> which is consistent with the property's fair reuse value of $0. This is due to the affordability <br /> restrictions to be placed on the property, which greatly reduce the sales prices of the homes. <br /> VI. PROVISION OF VERY LOW, LOW, AND MODERATE INCOME HOUSING <br /> This Project will provide eight homes affordable to very low-income households earning no <br /> more than 50% of AMI. The homes will carry 45-year deed restrictions to maintain <br /> affordability. <br /> VII. CONFORMANCE WITH FIVE-YEAR IMPLEMENTATION PLAN <br /> The subject project is a key element of the Agency's affordable housing program, as described in <br /> the Agency's Implementation Plan for the 2005-2009 period. The project accomplishes a <br /> number of objectives, as follows: <br /> • By providing 8 very-low income single family ownership homes, the Project will <br /> help alleviate the community's severe shortage of workforce housing; <br /> ■ The project will enable the Agency to continue to meet its legal affordable <br /> housing production requirements; and <br /> ■ With 100% of the units restricted to very-low income households, the project is <br /> consistent with Association of Bay Area Government's affordability targets for <br /> Redwood City, which state that at least 37% of the City's total housing need is for <br /> very-low income units. <br /> 18610.001\028-005.doc, 2/11/2005 Keyser Marston Associates, Inc. <br /> Page 10 <br />