Laserfiche WebLink
<br />ll~ ,- \ ~ <br /> <br />v. <br /> <br />CONSIDERATION RECEIVED AND REASONS THEREFOR <br /> <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 $74,000. <br />No consideration will be received by the Agency in return for its financial assistance to the <br />Project as the project's economics are not strong enough to support a purchase price for the land, <br />which is consistent with the property's fair reuse value of$O. This is due to the affordability <br />restrictions to be placed on the property, which greatly reduce the sales prices of the homes. <br /> <br />VI. <br /> <br />PROVISION OF VERY LOW, LOW, AND MODERATE INCOME HOUSING <br /> <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 /> <br />VII. <br /> <br />CONFORMANCE WITH FIVE- YEAR IMPLEMENTATION PLAN <br /> <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 /> <br />. <br /> <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 /> <br />. <br /> <br />The project will enable the Agency to continue to meet its legal affordable <br />housing production requirements; and <br /> <br />. <br /> <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 /> <br />1861 0.001 \028-005.doc, 2/11/2005 <br /> <br />Keyser Marston Associates, Inc. <br />Page 10 <br />