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B. Local Housing Assistance Program Strategies <br />The strategies available for use in the IRCLHAProgram shall <br />serve to effectively reduce the cost of housing in two ways. <br />The first is by awarding grants or deferred loans to eligible <br />recipients, whereby a portion of the initial cost encountered <br />in acquiring or providing housing may be eliminated entirely <br />or deferred indefinitely until a time when the eligible <br />recipients may then be able to afford the costs. The second <br />method of reducing the cost of housing is by the provision of <br />loans at an interest rate lower than current market rates <br />offered by private financial institutions. Such low interest <br />or no interest loans result in reduced costs by decreasing the <br />amount of funds to be paid back over time. By utilizing <br />assistance strategies which provide these two methods of <br />either deferring or reducing costs, the IRCLHAProgram will <br />encourage the provision of affordable housing. <br />A total of eight (8) assistance strategies are available for <br />use by the Indian River County Local Housing Assistance <br />Program (IRCLHAProgram) in providing assistance to eligible <br />persons or sponsors. Of the seven strategies, emphasis and <br />priority for use will be placed upon the Impact Fee Grant, <br />Impact Fee Loan, Downpayment/Closing Cost Loan, Land <br />Acquisition Loan, Rehabilitation Loan , and rehabilitation <br />grant strategies. Utilization of the two Land Banking <br />strategies will occur solely if funds are available which may <br />not be effectively utilized under one of the initial five <br />strategies. These strategies are further described as <br />follows: <br />1. Xwpact Fee Grants <br />a. Description <br />The IRCLHAProgram anticipates providing grants for the <br />payment of water, sewer, electric, and traffic impact <br />fees for eligible housing units for qualified eligible <br />persons or sponsors. Funds for impact fee grants shall <br />be transferred directly to the appropriate impact fee <br />account corresponding to the eligible housing unit. <br />Grants may be provided for connection to public services <br />for new construction or for existing owner -occupied <br />homes. <br />For new homebuyers, such grants will reduce the financial <br />cost, as the grant will eliminate the need to include <br />impact fees in the overall, up front, financing costs for <br />a housing unit. Grants provided to pay impact fees to <br />connect existing housing units to public services will <br />eliminate a financial burden for the owner who may be <br />unable to afford either making a lump sum payment of the <br />13 <br />