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Mem3randtmi % 669 <br /> <br /> State a)~d 'Lbcal Gover..w~t Fi.a~ce Divisio~ JOHN O. FOUST <br /> Se~ember R~, 1988 <br /> <br />To: Local Government Officials and their Certified Public Accountants <br />From: J. D. Fousti- Z~:~'~-/ <br />Re: Savings on FHA Discount Purchase Program <br /> <br /> Local'~overnments in North Carolina have saved a total of more than <br />$80,'680,0'00 in pr~Acipal as a result of the discount purchase program <br />rec~niiY ~a~ied o'ot by t~e FHA. The attached information shows that the <br />forty-three units which chose an early payoff of their debt (not <br />refinancing) saved over $11,0~0,000; while the 103 units which refinanced <br />their debt experienced a combined savings of more than $&~,5~0,000. <br /> ~his tremendous financial'savings to local governments and their <br /> citizens did not come without a great deal of coordination and effort on <br /> the p~rt of.several organizations- Wit~ assistance from th~ N.C. League of <br /> Municipalities and the N.C. Association of County Commissioners~ our office <br /> investigated various financing mechanisms. Emphasis was placed on those <br /> whi~'h wouid allow 16cal governments planning to' refinance their debt to <br /> lish their objectives. Given the t'ime c~nstraints associated with. <br /> accomp ' - t e a earance of other roadblocks, <br /> the:FHA Discount"Purchase Program and h PP <br /> however, there seemed to be no alternative which would accommodate such a <br /> large number of debt refinancings- <br /> .Despite this, members of the banking i6dustrY in N6rth Carolina <br /> s~'~pped forward to come to the aid of our local governments. Through <br /> negotiated sales, banks enabled units to accomplish the refinancing of <br /> their debt with the FHA within the required time frame. In particular, <br /> gratitude is extended to people such as Frank B. Holding, Vice-Chairman of <br /> the'Board of First Citizens Bank and Trust Company, who also serves on the <br /> Board of County Commissioners for Johnston County. Although his County did <br /> not have any debt-outstanding with the FHA, Mr. Holding's efforts through <br /> First Citizens and its affiliates resulted in the purchase of debt for <br /> approximately &IZ of the units involved. <br /> Our .State can be proud of the efforts made by the several <br /> ~rganizations invol~ed to enable such savings to De realized, and <br /> .preciative of the strong support by members of our banking indostry to <br /> <br /> ing them about. <br /> <br /> .~5 N, $ li~r~ Stre~'t, Rat 'i~h. No~h' Ca.Ii.. <br /> A.~ffirmiiti?~ Arlioi~/~l~al OppJri~o, lty <br /> <br /> <br />