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Director Keating further explained the seven recommended strategies for housing and neighborhood conservation. 1. Impact Fee Grant: Grants to pay the cost of the impact fees for new houses or for required connection to utilities services for an existing house. Only families in the very low income category are eligible for these grants, and as with any grant, it does not need to be paid back. 2. Impact Fee Loan: Deferred loans with 3 percent interest rate; the principle and interest is not required to be paid back until the dwelling unit is sold. One advantage of an impact fee loan is that it is not included when financial institutions are looking at debt to income ratio. The impact fee loan is intended to pay for utility impact fees associated with connection to utilities as well as traffic impact fees and other costs associated with new construction. 3. Down Payment and Closing Costs: There is a 3 percent interest charge, but the principle and interest are deferred until the housing unit is sold. 4. Land Acquisition Loans: This type of loan is geared toward Habitat for Humanity and other non-profit organizations involved with housing. Staff had discussions with representatives of Habitat for Humanity and they indicated they will take advantage of this strategy. We will provide them with assistance to acquire land on which they can build affordable housing, and they will get potential home owners involved with the "Sweat Equity" approach. 5. Rehabilitation Loan: These are loans.for renovation of existing homes. 6. Land Bank: Purchase of property at market value. 7. Land Bank: Tax Deed Purchases. Regarding 6. and 7., staff does not know if these will be recommended, but they are possible strategies. Director Keating listed the three targeted income groups: Very Low = families whose income is 50 percent or less of the area's median family income; Low = families whose income is 80 percent of the area's median family income; Moderate = families whose income is 120 percent of the area's median family income. Last year the area median income was about $35,000 a year, and this figure is adjusted for household size. Commissioner Adams asked for clarification on the moderate income category, and Director Keating explained that 120 percent of the area's median income of $35,000 would be about $47,500 for the moderate income category. Director Keating further explained that the County approved the local assistance plan which includes requirements and 27 MA -1199 PooK �� a