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CHAIRMAN WODTKE AGREED, BUT FELT IF WE SHOULD HAVE A HOUSING AUTHORITY, IT WOULD BE THE PROPER PLACE FOR SUCH A PROGRAM. COMMISSIONER SIEBERT INFORMED THE BOARD THAT ONCE YOU RESERVE THESE FUNDS, THEY ARE ENCUMBERED, BUT EMPHASIZED THAT THIS PROGRAM EXPIRES JUNE 301 1979. CHAIRMAN WODTKE ASKED WHEN YOU START PAYING THE INTEREST, AND MR. REGAN ANSWERED THAT YOU DONT PAY THE INTEREST UNTIL YOU SELL THE PROPERTY. HE BELIEVED THE DEPARTMENT OF COMMUNITY AFFAIRS WILL JUST ENCUMBER THE"FUNDS AND HOLD THEM. HE FELT THE INTENT IS TO SEE THAT THE COMMISSION BRINGS ABOUT SOME SORT OF ACTION WITHIN THREE YEARS, THEY DONT WANT THE MONEY TO SIT THERE FOR AN INDEFINITE PERIOD. ATTORNEY COLLINS STATED THAT WHEN YOU.SELL THE PROPERTY, YOU SELL IT FOR CASH; THEN YOU PAY OFF THE LOAN. COMMISSIONER SIEBERT NOTED IF YOU SOLD IT TO A HOUSING AU- THORITY, THEY WOULD HAVE TO PAY IT BACK WITHIN THREE YEARS. CHAIRMAN WODTKE ASKED IF YOU SPEND $400,000 FOR THE LAND AND SPEND ADDITIONAL MONEY TO DEVELOP THE ROADS, ETC., HOW YOU CAN AFFORD TO KEEP THE PRICE LOW ENOUGH FOR LOW COST HOUSING. MR. REGAN EXPLAINED THAT THE DEVELOPER SAVES MONEY BECAUSE HE CAN T GET THE 3% INTEREST RATE AND ALSO THE VALUE OF THE LAND WOULD HAVE GONE UP IN THE MEANTIME. COMMISSIONER LYONS POINTED OUT THAT THE DEVELOPER ALSO WOULD HAVE A MARKET HE DID NOT HAVE BEFORE BECAUSE OF THE SUBSIDIZED HOUSING, AND MR. REGAN AGREED THAT THIS MAKES BUYERS OUT OF PEOPLE WHO COULD NEVER HAVE BEEN BUYERS OTHERWISE. WE ARE MAKING THE LAND AVAILAfl-LE FOR OTHER FEDERAL PROGRAMS. COMMISSIONER"SIEBERT COMMENTED THAT IF WE OWN THE LAND, WE CAN CLEAR THE LAND, PUT IN THE ROADS, ETC., ON A NON—PROFIT BASIS AND Y� ALSO CAN ESTABLISH DENSITIES AND OTHER CRITERIA. COMMISSIONER LYONS FELT THE IMPROVED LAND COULD BE MADE AVAIL— ABLE AT A MUCH LOWER COST THAN BY ANY OTHER MEANS, COMMISSIONER DEESON ESTIMATED THAT AS MUCH AS.40% WOULD BE SAVED ON THE INTEREST DIFFERENTIAL ALONE. 59 APR 4 1979 BOOK 39 PAGE 413