Res87 10700 - Laserfiche WebLink

Browse Search

" ( 3. Homeless ~ed~ood City has no good ~easures of the degree of home- lessness. The City has, hO~l'ver, purchased a twelve unit apartment building to be used as a Family Living Center. FamIlies ~ill be able to stay for approximately 30 days. It is clear that the need far exceeds the capacity of this twelve unit facility. Market Constraints The price of housing has been rising at a grealer rate than family inco~e, thereby decreasing the opportunities for home o~nership to a growing percentage of the public. Contributing factors include the inflating costs'of land, material, labor and financing, as well as fees charged for services by the private and public sectors. It appears that despite innovations in materials and financing, the cost of housing will continue to outstrip increases in ~ages, This trend is likely to be exaggerated i~ Red~ood City because of the natural and cultural attributes of San Mateo County, which make the city a pleasant place to live. Labor costs ca~ be a factor affecting the overall cost of ne~ housing and could indirectly affect the cost of manufactured housing as well. Contracts in sorr,e areas preclude the use of Union labor to assemble manufactured housing. Alsc affecting the supply of housing and the construction rate, and thus indirectly the cost of housing, is the lirr.lted num~~r of units which have been built in Red~ood City out of the number apprcved. High financing costs caused both short-terrr. and indefinite delays in the construction of approved housing. Most of the forces affectir,g tlousing in Red.oed City are co~trol1ed by ever,u; at the re9ior,al state or federal levels, rat~.er than by local deci~ior, rr.aKefS. Alsc" nothing car, alter the fact that the COIlllT,unity is, and ~ill co~tinue to be, an attractive place to live. The following is an analysis of current market constraints on housing, and the City's efforts to limit these constraints. While increases in house prices have slowed in the past two years, house values and monthly housing payments have increased by 200\ since 1975. Between 1970 and 1980 .-ediar, household income increased 2.8 tilles, while mean house values increased 3.5 times. The following chart shows the income necessary to afford the average cost home in ~edwood City, based upon the following assumptions: . 1. Bouse paynlent not to exceed 40\ of income 2. Interest rate of 10.5\ fixed for 30 years 3. Loan to value ratio of 80\. EXB "L"-5 12