Res95 RD-95-01 - Laserfiche WebLink

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for Redwood City. This cash assistance may be tailored to meet the needs of the _ individual applicants in this income category in the following ways: a. To write down the cost of the mortgage from the asking price to the amount the household can afford to pay (30% of income for mortgage, taxes, insurance, and homeowner association fees). b. For down payment assistance and or dosing costs. c. To write down bank interest rates to make mortgages more affordable to lower income groups Cash assistance will be secured by a second Deed of Trust. Texms of Financing Assistance is discussed in Section I of this document. 2. Project Based Subsidies - Subsidies may be provided directly to the developer, who, passes their savings down to the home buyer in the fo~m of below market rate units. Units generated from this type of subsidy will typically be available for 80% to 120% of median income for Redwood City. Project based subsidies may be provided to the developer as: _ a. Cash for construction financing assistance. b. Through issuance of mortgage revenue bonds. c. As a land subsidy where the developer pays the City or the Redevelopment Agency a nominal cost for public land. d. Developer costs may also be minimized when infrastructure type improvements are paid by the public body and not included in the developers cost to build a proiect. e. Additional subsidies may be provided through density bonuses, and other incentives which allow a developer to build more units than would be allowed under current zoning, with the provision that a certain percentage of the units be set-a-side for targeted income groups.