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Show -3igh inveresv raves hurt housing in local area Second of a five-part series on housing in growth-effected areas. by Steven Wallis Vernal Express Editor If housing in the Uintah Basin is hard .to find, plans for housing projects in the county do not reflect that fact. Since the first of the year 57 housing projects have been submitted to the city-county planning office, which if all were constructed there would be housing for 5.647 families, well over the number of housing units needed for predicted growth. "If only half of the planned developments were built," said Bob N'ickolson, city-county planner, "there would be enough housing, but whether they will all actually be built is another question." N'ickolson noted that there is "quite a bit of high density developments being planned." Within the last nine months 8 to 10 rezone requests have come before the Planning Commission. Presently only one-third of the city is zoned for single family dwellings. There is a total of 547 units for mobile home park planned in the city and county and 186 units for recreation vehicles. There are 2,952 single family dwellings planned, but many of those are high density. With more than enough housing projects on line, why is housing such a problem in the area? According to N'ickolson, the main problem with housing is the high interest in-terest rates. "It is not a question of land or willingness of developers, but high interest rates which are hurting financing," N'ickolson said. With a home costing $39,900 at present interest rates of 18 percent, homeowners will be paying $500 to $800 monthly payments. "If the interest rates stay high, mobile or cheaper homes will be the only alternative," N'ickolson said. Because of the high interest rates, housing loans at local banks and lending len-ding institutions are dropping off. Brad Wallis, Deseret Federal Saving and Loan Association, said that loans for housing at his firm have dropped to two or three a month where last year at the same time their firm was handling 35 to 45 home loans. "The effect is that only the very rich can afford a home at all," Wallis said. "It is my opinion that the government dabbling in the money market hasn't helped," Wallis said. "The government has upped interest rates to cool the economy by tightening lending, but people still borrow at 19'2 percent interest on the premise that the rate will get higher." "This a bad time for growth," N'ickolson commented. "The people are going to come anyway, but they will come into cheaper housing because cost is a concern. There will be less quality, less asthetics." Wallis said he thought that some of President Reagan's policies would lower the interest rates, but already they have been higher longer than expected. According to Walley Goddard, realtor for Aspen Brook Realty Better Homes and Gardens, the same thing that happened to cars w hen the price of gas went up is happening to homes. "People are cutting the frills." Goddard said. "They are eliminating things as garages, brick or basements." People looking for a nice home, but can't afford the payments will be going into condominiums or apartments as an alternative to single family dwellings, Goddard said. Next Week : A look at renting. |