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REDWOOD CITY FAIR AND AFFORDABLE HOUSING ORDINANCE <br /> <br />Economic & Planning Systems, Inc. 43 Impact on City Finances <br />However, the initial 9212 Report did not include a separate cost estimate for the <br />proposed Ordinance’s requirement that the City provide free legal services for <br />low-income tenants. Because tenant legal services would be an ongoing City- <br />administered responsibility, this cost should be treated as an additional annual <br />program administration cost beyond the program cost estimates identified above. <br />The City East Palo Alto provides the most useful local benchmark for estimating <br />this potential cost because the city provided a detailed legal services contract <br />amount and service breakdown, including legal services intakes and administrative <br />costs. Because East Palo Alto is substantially smaller than Redwood City, these <br />costs were scaled based on renter-occupied households to develop an illustrative <br />Redwood City estimate. <br />Table 15. East Palo Alto Legal Services Benchmark <br /> <br />Based on this benchmark, a comparable legal services program in Redwood City <br />would cost approximately $1.06 million annually, or approximately $66 per rental <br />unit per year if spread across all rental units. <br />When tenant legal services are added to the initial administration cost estimates, <br />total annual program administration costs increase as shown in Table 16 below. <br />Item East Palo Alto Redwood City <br />Equivalent <br />Total households 8,267 33,516 <br />Owner-occupied households 4,056 17,348 <br />Renter-occupied households / rental units 4,211 16,168 <br />Renter unit scale factor - 3.84 <br />Legal services intakes $240,000 $921,600 <br />Administrative costs 15%15% <br />Total Legal Cost $276,000 $1,059,840 <br />Per Unit Cost $66 $66 <br />8.A. - Page 102 of 168 <br />112