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PUBLIC HEARING (continued) Item No.2 (continued) property tax and that the HOD program debt service includes maintenance costs, management costs and a reserve, stating that the development is cooperatively managed and there is no chance the property would become rundown, since maintenance funds are available. Mr. Rubenzahl said that equity may be limited, but there are tax benefits, and the shares can be sold by residents when they move. He pointed out that the coop era tive is very high quality and not "low cost" construction; that certain income levels are needed to qualify which are tied to the San Mateo County median income; and showed a slide indicating the salaries of various city positions which would qualify. James Johnston. Sr., James Johnston Property Management, 1291 East Hillsdale, San Mateo, reported his firm is responsible for screening and selecting prospective shareholders. He said that compatibility of shareholders is essential and that in the cooperatives and large apartment complexes with which he is experienced, there is considerable pride of ownership, none are in default or have missed payments, and maintenance funds are available from HOD. Robert Dowie, Wheatly Associates, 755 Page Mill Road, Palo Alto, construction company selected for the cooperative, advised that his firm has built five HOD financed developments and they are proud of them. None of them have deteriorated, and it has been his experience that initially there has been objection by nearby citizens, then resignation after it is built and is seen to be attractive, followed by neighborhood acceptance and open pride in the colllDUnity about the project. Louis Goldsmith, former president and member of the Board of Palo Alto Housing Corporation, 2423 Sharon Oaks Drive, Menlo Park, stated that Redwood City was lucky to have been selected for mortgage financing of its cooperative and invited anyone interested in the quality of housing to be provided to visit "Webster Woods" at Middlefield Road and Channing in Palo Alto. He pointed out that the cooperative was entirely developed by the Association and that HOD is providing financing and not building the project which will be nothing like those cited by previous speakers who oppose it. Mr. Goldsmith reported that shareholders are screened for living habits, record of bill payment, record of responsibility, income according to the San Mateo County median basis required, and coq¡atibility. Mr. Goldsmith called attention to "Webster Woods" and "Colorado Park" in Palo Alto, "Homestead Park" in Sunnyvale and "Monta Vista Park" in Mountain View as examples of the kind of development planned. He pointed out that they are in neighborhoods of relatively expensive homes, and it is generally not known they are any kind of housing project. Mr. Goldsmith emphasized the importance of good management of the project. Mr. Foreman (see above) summarized colllllents and urged Council to uphold the Planning Colllllission's decision, deny the appeal and proceed with the project. Following the presentations of the appellants and proponents, Mayor Stangel invited individuals who wished to speak to do so for not more than two minutes each. Dennis Duck in, 415 Lanyard, attorney, neighbor and a Director of the cooperative, emphasized that it is not a HOD project, that HOD is providing financing of a locally developed project, and observed that salaries of prospective residents are adjusted to the salary median in San Mateo County. Beryl Darnell, 3907 Lakemead, President of the American Association of Retired Persons reported AAHP supports the cooperative and suggested large incomes do not necessarily mean a high level of property maintenance. Mr. Darnell said that good management is necessary and urged approval of the project. Reg. Mtg. 5/17/82 Page 7 I. ,/ /' /' 3F1