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A <br />CREATE A TWO-TIER RATING SYSTEM, AND IT WILL BE HARD TO HANDLE. HE CON- <br />TINUED THAT INTEREST RATES HAVE PEAKED, AND THE BUYING PUBLIC MAY BE <br />ABLE TO BENEFIT. HE REPORTED THAT 39% OF THEIR LOANS WERE UNDER $30,000 <br />AND 50% WERE UNDER $50,000. MR. BROWN COMMENTED THAT THE BULK OF THEIR <br />LOANS ARE SERVING THOSE THAT THE COUNTY IS LOOKING TO LEND TO, AND THEY <br />DO OFFER 95% LOANS. HE FELT THAT IF WE PUMP UP THE DEMAND FOR HOMES, <br />THE PRICES WILL GO UP AND THE PEOPLE WILL BE PRICED OUT OF THE MARKET; <br />AND HE QUESTIONED WHETHER THERE WAS REALLY A NEED FOR THIS IN INDIAN <br />RIVER COUNTY. MR. BROWN NOTED THAT IN SOME AREAS, THIS TYPE OF FUNDING <br />IS USED AS AN INCENTIVE, BUT FELT WE DO NOT HAVE A SOCIAL DECAY PROBLEM <br />HERE. HE STATED FURTHER THAT THE PROBLEM OF MORTGAGE REVENUE BONDS IS <br />NOW BEING DISCUSSED, AND WASHINGTON IS CONSIDERING DISCONTINUING THEM. AS <br />THE REVENUE BOND PROGRAMS ARE THE LEAST EFFICIENT. MR. BROWN SAID THERE <br />ISA FEDERAL EXPENDITURE.THROUGH THE TAX ROLLS, AND ONLY 40% OR 50% IS <br />PASSED ON TO THE HOME BUYER; ALSO, THE GOVERNMENI 15 VKUVuZ)tivu uiviwu r <br />$400 TAX CREDIT TO THE HOME OWNER - THIS WOULD ELIMINATE THE BOND PROGRAM <br />AND KEEP LOCAL GOVERNMENT OUT OF THE LENDING BUSINESS. MR. ISROWN THEN <br />MENTIONED THE MERITS OF THE HOME OWNERS WARRANTY PROGRAM AND FELT MORE <br />INPUT SHOULD BE OBTAINED BEFORE THE BOND PROGRAM IS PASSED. HE CONTINUED <br />THAT THE COUNTY IS GIVEN AN OPPORTUNITY TO CREATE AND CONTROL A HOUSING <br />PROBLEM AT NO COST TO THE COUNTY -'BUT IT IS GOING TO COST SOMEBODY. HE <br />FELT IT WILL INCREASE TAXES, AND THE BULK OF THE COUNTY WILL BE PAYING <br />FOR THIS BY USING THIS BOND PROGRAM, MR. BROWN CONCLUDED BY STATING, <br />THAT HE WOULD LIKE TO SUGGEST THAT THIS BE GIVEN MORE STUDY AND BE DIS- <br />CUSSED WITH THE LOCAL LENDERS BEFORE ITIS ADOPTED. <br />CHAIRMAN WODTKE ASKED IF ST. LUCIE COUNTY HAD ANY HOUSING <br />FINANCE AUTHORITY PROGRAMS, <br />MR, BROWN STATED THAT THEY DID NOT; THAT HE HAD SPOKEN TO <br />DIFFERENT PEOPLE WITH THE HOW PROGRAM.AND VARIOUS ST. LUCIE COUNTY <br />OFFICIALS, AND THEY ALL FELT'SINCE PEOPLE WERE NOT BEING DEPRIVED OF <br />HOUSING, THEY WOULD NOT GET INTO IT. HE FURTHER SAID THEY ARE TRYING <br />TO COME UP WITH ANOTHER ANSWER THAN TO GET LOCAL GOVERNMENT INTO THE <br />MORTGAGE AND LENDING BUSINESS. <br />4 <br />BOOK 41 pAcE 04 <br />