7/9/1980 - Laserfiche WebLink

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MR. REGAN STATED THAT AS HE UNDERSTANDS THE MECHANISM OF PUBLIC HOUSING, THE TITLE TECHNICALLY IS IN THE FEDERAL GOVERNMENT UNTIL THE BONDS ARE RETIRED AND THEN IT REVERTS BACK TO THE HOUSING AUTHORITY IN OWNERSHIP. COMMISSIONER LOY NOTED THAT THIS MONEY HAS TO BE USED TO PURCHASE LAND AND GET IT IN THE PHYSICAL CONDITION TO BE READY FOR SOME TYPE OF HOUSING, AND AT THAT POINT IT HAS TO BE SOLD SO THAT STATE CAN BE PAID BACK. MR. REGAN DID NOT BELIEVE YOU COULD GIVE A SUBORDINATION SO SOMEONE COULD BUILD ON IT AND YOU COULD PAY THE LOAN OFF LATER, AND COMMISSIONER LOY FELT THE HOUSING AUTHORITY WOULD ACTUALLY HAVE TO PURCHASE THIS LAND, DISCUSSION CONTINUED ON THE TECHNALITIES INVOLVED. INTERGOVERNMENTAL COORDINATOR THOMAS STATED THAT HE WAS THOROUGHLY FAMILIAR WITH THIS PROGRAM AND EXPLAINED THAT THE UNDER- LYING PRINCIPLE IS THAT THE PEOPLE WHO ARE GOING TO BE SERVED BY THIS CANNOT EVEN AFFORD TO BUY A LOT. THE PEOPLE, IN EFFECT, PAY BACK AT A VERY LOW INTEREST RATE THE LOAN THAT BOUGHT THE LAND. HE SAW NO PROBLEM WITH THE FINANCIAL IMPLICATIONS AND NOTED THIS IS WHERE YOU HAVE GOT TO START: IF YOU DON T START, THERE IS NO NEED FOR A HOUSING AUTHORITY. MR. REGAN COMMENTED THAT THE VEHICLE FOR GETTING THIS INTO THE HANDS OF A MODERATE INCOME FAMILY IS THE FMHA, THEY WILL MAKE LOANS TO INDIVIDUALS WHO WANT TO BUILD THEIR OWN HOUSE, OR WE WILL HAVE THE DEVELOPER BUILD THE HOUSE, GET THE CONSTRUCTION LOAN FROM THE BANK, AND THEN THE FINAL TAKEOUT IS FROM FMHA: SO, THE PURCHASER COULD BE SOMEONE WITH A VERY LOW DOWN PAYMENT WHO MIGHT ONLY PAY 1% INTEREST. COMMISSIONER WODTKE THOUGHT THE PRIMARY PURPOSE FOR THIS TYPE OF DOLLARS WAS TO USE THEM TO PURCHASE THE LAND AND THEN DEVELOP THAT PIECE OF PROPERTY TO GET IT TO A BUILDABLE STATE - ROADS, UTILITIES, DRAINAGE, ETC. HE NOTED THAT YOU GET A BUILDABLE, DE- VELOPABLE LOT VERY MUCH CHEAPER BECAUSE YOU TAKE THE PROFIT MOTIVE OUT OF IT AS FAR AS THE COUNTY IS CONCERNED. 25 Bonf ., paiu- '205-