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7. Provide money for purchase of land by the County, including tax deed purchases. Director Keating indicated that many people cannot buy a home because they do not have enough money to pay the down payment and closing costs. This program will make funds available to cover down payment and closing costs at the below-market interest rate of 3%. The interest charges will be deferred until the property is sold, and if the borrower keeps the home for 20 years or longer, they will not have to pay the interest. Chairman Bird agreed that up -front cash requirements are a problem for people and this should help. He asked whether the private sector will assist the County with program administration. Director Keating responded that financial institutions are not willing to service the loans. Applicants who are unable to qualify for a conventional mortgage will be referred to the County by the financial institutions. Or, people might come directly to the County after hearing about the program. The County will be responsible for servicing the loans. The County may or may not be the principal mortgage holder, depending on the circumstances. Discussion ensued, and Director Keating confirmed that this will be a county -wide program. Indian River County is one of the first counties to take advantage of this program and should receive a substantial sum of money from the state. Chairman Bird was concerned that the cost of administering the program might outweigh the benefits to the people, and Commissioner Eggert pointed out that there is a 10% cap on administrative costs. Director Keating explained that the ordinance designates the Community Development Department as the program administrator. However, day-to-day administrative activities can be contracted out, and staff hopes to make specific recommendations to the Board in this respect at future board meetings. Director Keating advised that staff prepared a draft of the plan and presented it to the Affordable Housing Advisory Committee. The Affordable Housing Advisory Committee directed the finance subcommittee to work with staff, make several changes and then submit the plan to the state housing finance agency for a courtesy review. The state housing finance agency reviewed the plan and made ten comments. Christopher Rison, senior long-range planner, spent a lot of time with the review agency, and a number of substantive changes were made. The strike-throughs and underlines represent the changes that were made after the plan was reviewed. 53 SINK 1993 b0®K 89 PAGE 25, 0 � ®�