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Ms. Forbath continued that if a resident needed to go into assisted living, the property could be sold to pay off the loan, and the property would now include the home and the lot. She added that if the person passed away in five years, the piece of land would be an asset that would go to the heirs, who would have the choice to keep it or sell it. Commissioner Fox inquired what percentage of residents would be able to qualify for a $200,000 loan. Ms. Forbath replied that as long as the residents are low income, they would qualify for the State program; additionally, the park owner would assist those who do not qualify in obtaining a regular home loan by working with lenders and looking for available financing that is much better than what is in place today. Commissioner O'Connor inquired whether or not deferring principal and interest would make the loan actually higher than the value of the lot and home combined. Ms. Forbath replied that this does not typically occur as land values go up and there would be equity. She noted that the home or "coach" would depreciate, but the price of real estate increases. Commissioner O'Connor inquired if the State would extend a loan for both the mobile home and the land if an 85- year -old resident is making payments on the mobile home and purchases the land for $200,000. Ms. Forbath replied that the loan would only be on the land but that the existing mobile home loan would be considered in the assessment. Commissioner Fox noted that the survey was done for ten years into the future and inquired if this would be adequate or bona fide, considering that the price ten years from now would be unknown and seniors would have no idea what the values would be in the future. Ms. Forbath replied that there are several reasons for someone to support the conversion without knowing whether or not they want to buy, including the recognition that it provides options in the future. She noted that one would not necessarily have enough information until the DRE process is completed, and the applicants cannot go to that process until they are approved by the City. She added that the survey is not asking whether or not they want to buy but whether they support the idea of having an option in the future. Mr. Close stated that he raised similar points when the law was being proposed, but the legislature decided that the survey must be done in the beginning of the process. He indicated that he thinks the legislature wanted the park owner to get a feeling as to whether or not residents might be interested in purchasing if they were able to do it and if financing was available. He indicated that he agreed with some comments that the EXCERPTS: PLANNING COMMISSION MINUTES, February 25, 2009 Page 8 of 19