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is on people who have no housing at all or the housing is completely substandard. Mr. Moulton said that in a city like Redwood City, "we know that the next group up and not far off in income, are service workers, shop keepers, and entry level people. It is an extremely hard problem right now and particularly in this real estate market." He said there are many challenges in determining which families will benefit from these programs, and said he "would be delighted and pleased to sit down with you at any time and try to devise a way to create housing for people with the kinds of incomes and the kinds of occupations you are talking about." Mr. Moulton said his program was specifically designed for people without regard to occupation or relationship to the City, "we are working through your Housing Coordinator to identify and serve people who live within the boundaries of Redwood City. That is the partnership we are currently making with the City." Mr. Moulton said he didn't know if Habitat could legally require the conditions, such as occupation, that Council Member Ira suggested. City Attorney Schricker said, "We have some leeway in that regard. However, I have to defer to another level of law because if are going to use CDBG funds there is an overlay of federal regulations that I could not respond to tonight as to whether there is some prohibition on such specific targets. Mayor Howard asked City Attorney Schricker to provide information regarding the kinds of conditions suggested by Council Member Ira. MEMO 3/3/98 Mr. Moulton said there was tremendous support for this type of housing and if the Council encouraged the people of Redwood City to participate, "You will be delighted and surprised to find out how much interest there is in doing it." Pete Hughes, 18 Admiralty Court, representing the Board of Directors of the Rotary Club of Redwood City, said, "A year and a half ago we made contact with Habitat for Humanity and encouraged them to see if they could work with us to bring Habitat into Redwood City. We think it is our kind of project. It doesn't line up at the government trough or ifit does it lines up at the very minimum. It depends on volunteers. It depends on private capital. Our Board of Directors has agreed to contribute a minimum of $10,000. I think we'll contribute several more tens of thousands of dollars before this is done. I know our Club will contribute thousands of hours of volunteer work to help build this house, which I think is a wonderful idea. However it there was a special group that was specified who had to live in the house, I think my Club might take a different view. We hope this project moves ahead, unfettered and with the cooperation of the government of Redwood City. If it succeeds I know my Club and probably other service clubs and organizations in Redwood City will be delighted to charge ahead and do more of this type of project." In response to Mayor Howard's question regarding limiting it to a Redwood City family, Mr. Hughes said, "The understanding was, this is a Redwood City project and it should be Redwood City people who live in it." REGULAR COUNCIL MEETING MINUTE BOOK NO. 56 MARCH 2,1998 MINUTES Page No. 314 PAGE 20