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FF-- -1 <br />APR - 51994 <br />som 92 FACE . 52 <br />purchased have been in the $20,000 to $30,000 range. The home <br />buyers were making monthly rent payments, but were unable to <br />accumulate funds for the down payment and closing costs. The <br />County's objective is to make it possible for people to buy a home <br />by assisting them with those costs. <br />Commissioner Eggert commented that one requirement is that <br />total housing costs cannot exceed 30% of the total income in the <br />household. <br />Commissioner Adams asked whether there is any way to prevent <br />people from buying houses and then renting them out. <br />Director Keating responded that we try to monitor this, but it <br />is difficult -to prove. <br />Commissioner Macht questioned the requirement that people who <br />receive this assistance must split a portion of the profit with the <br />County if they sell their home less than 10 years after buying it. <br />Commissioner Bird thought that people should be able to move <br />into a nicer home if their circumstances improve after several _ <br />years, and he felt that the recapture provision might be counter- <br />productive. <br />Commissioner Macht was opposed to the 2nd and 3rd provisions <br />under Item 4 relating to forgiveness of principal and interest, <br />because that involves taking tax money from one person and using it <br />to forgive the debt of another person. <br />Commissioner Adams wondered how the County can replenish the <br />trust fund if we forgive the interest and principal. <br />Further discussion ensued regarding the loan repayment and <br />recapture provisions. <br />MOTION WAS MADE by Commissioner Adams, seconded by <br />Commissioner Eggert, to adopt Resolution 94-48, <br />approving the County's revised local housing <br />assistance plan for the 1994-95, 1995-96, and 1996- <br />97 fiscal years, and providing for the State Housing <br />Initiatives Partnership Program (SHIP) requirements, <br />with the following change: Remove the 2nd and 3rd <br />provisions under Item 4 relating to forgiveness of <br />principal and interest. <br />Under discussion, Commissioner Bird preferred to eliminate the <br />recapture provision after 5 years instead of 10 years. <br />28 <br />