During the last few weeks I have tried to focus for you what effect a housing moratorium means for a nation, its states and localities. Last week we looked at some effects this moratorium would have in Georgia.

Many people involved in the complexities of providing adequate, healthy environmental conditions for all, believe that state and local mechanisms for housing production are absolutely essential. We can no longer look to the federal government to carry this role, nor should we.

Many technicians feel the answer (at least one possible answer) lies in the creation of a state finance and development authority. The following excerpt from a report by the Housing Committee on State Planning and Community Affairs, chaired by Elliott Levitas, presents the concept:

“The primary purpose of such a mechanism is to provide low-interest loans to qualified sponsors of residential housing for low- and moderate-income families. The authority would have the singular power of purchasing mortgages from private, primary lending institutions, and would be given additional powers to allow it to make direct mortgage loans to qualified housing sponsors for the construction and rehabilitation of housing for families and persons of low and moderate income. The basic source of financing for the authority would be the tax exempt bond market. The authority will sell tax-exempt revenue bonds (i.e. bonds the principle and interest on which are payable from the revenues of the projects financed) and re-lend the proceeds to builders and developers with approved projects.”

This was proposed tax House Bill 709 but failed to win needed support. The bill will be re-introduced next session and hopefully expanded public knowledge will aid in its passage.