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and fixed incomes are involved, but they tried to put in as much protection as possible. Some residents want to continue to rent forever. When looking at housing affordability, one must factor in the cost of homes in the Park some of which are selling for $200,000 and up. Therefore, added up, it's not as affordable as one may think. For lower income residents, if they want to take advantage of the loan program, their costs could be reduced lower than they are now. Ms. Forbath said that another thing that will not change is the oversight of the Park by the State. The Mobile Home Residency law would also be in place as well as additional protections, for those who purchase the Tots, under the Davis Sterling Act. Regarding the Tenant Impact Report (TIR) and information provided to residents, the owner and the firm did their best to provide all information in a user friendly manner to residents. The TIR is not very user friendly but they put the same information in the form of a question and answer flyer, in addition to meeting several times with residents and answering questions. Regarding the homeowners association and renter's involvement, Ms. Forbath said ultimately, the homeowner association is formed by those who choose to buy lots; however, she has seen parks where they have a renter liaison. Regarding the urgency of the park owner converting now, she said the owner is close to 80 years old, and would rather see the residents have the opportunity to own it. Vice Mayor Cook Kallio requested an explanation of how homeownership might reduce people's monthly payments. Ms. Forbath said for residents who are lower income and who can obtain State loans, the loans are 3% interest over 30 years, they adjust the monthly payment based upon the person's income level, so based upon what their income is, they could end up paying less monthly than they do now. Vice Mayor Cook Kallio questioned how it would affect those who are not low income? Ms. Forbath said typically in most senior parks, 82% of residents are lower income; however, this is not known for this particular park. If people have a loan on their mobile home which may range from 10% to 14% interest over a 10 -20 year period, if they decide to purchase they can roll the old loan into a regular real estate loan and get a 30 year, 6% loan, which can sometimes reduce what they are paying for their current loan and rent. Councilmember McGovern questioned if everybody who applies gets these State provided loans? Ms. Forbath said this year; the State will allocate $2 million per park. Everybody who is low income has the right to apply and the State will decide who gets the loan in the first application period. However, if there are still additional people who did not get loans, they can re -apply in the second year. She said for the last park she worked on, it took 3 years to get everybody funded that wanted funds, and in the meantime, they continued paying rent. Mayor Hosterman questioned whether the purchase price was based on the year in which loan documents were submitted, rather than the year the loan was approved. Ms. Forbath confirmed it was based on when the loan documents were first submitted if there were not adequate funds. Councilmember McGovern referred to costs being reduced for residents, but this does not include homeowner association dues or assessments needed for infrastructure costs. Once the residents own the park, they own everything: streets, lights, electricity, water, sewer, and this all must be maintained.