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Mr. Close indicated that there would be no change whatsoever in the park for at least ten years or longer. He stated that he was not sure why a ten-year period was suggested but believes it was something the owner preferred. Suzie Forbath, Gilchrist & Rutter, stated that the State recognizes that affordable housing is different for people of different incomes, and this is the reason why the increase in rent is spread gradually over a four-year period. She noted that the State is trying to create affordable for-purchase housing, which is a scarce commodity. She added that part of the reason why it is more of a form of affordable housing than what they have today is because while rents may be limited; there is no limit on the cost of the homes they must buy to rent the space. Ms. Forbath indicated that mobile homes do not qualify for real estate loans as they are deemed personal property, but upon conversion, the current residents who decide they want to purchase can take their old loans and roll them into a real estate loan with the property and qualify for lower interest rates. She noted that this would reduce the cost of what they were paying on their loans and would become affordable for them. Ms. Forbath stated that the State also wanted to encourage lower-income residents to be able to purchase their lots, and recognizing it may be difficult for them to qualify for loans, a State-funded finance program was created for lower-income residents in converted parks. She added that lower-income residents can be loaned money up to 95 percent of the purchase price at three percent interest over 30 years, and payments will be tailored based upon the residents’ income to ensure affordability. Ms. Forbath stated that there have been meetings in the park with large attendance, that they tried to provide as much information as possible to prepare the residents for the change, and that they were careful to mail information to everyone in the park. She noted that part of people’s fear is the unknown, and the unknown in this case is change. She added that this change provides the option for some to own where none currently exists and for others to continue rent, although their rent may not be protected in the same manner as the present. She indicated that there would be no change of use upon conversion and that the park will always remain a mobile home park. Ms. Forbath stated that everything within the boundaries of a mobile home park is controlled by the State Housing and Community Development Department and that this will stay in place after conversion. She added that the Mobile Home Residency law will stay in place, as well and that additional protections under the Davis Sterling Act will be provided once a homeowners association is set up. Commissioner O’Connor referred to affordability and inquired what the price of the conversion would be today. PLANNING COMMISSION MINUTES, February 25, 2009 Page 15 of 29