BOARD02366

• Board Meeting Date: 11/22/1999
• Description: CF Section - Financial Matters - Lending Rate Recommendations for 2000
• Board Meetings - Doc Type: Memo

would be 5.50 percent. All other rates were then structured from the High-Income
category as follows:

The Standard, Municipal Low Income, and Agricultural lending rates were set
using essentially the same relative differences as in previous years, i.e.; Standard
is IO percent less than High Income while Low Income and Agricultural are 20
percent less than Standard. Small discrepancies result from rounding.

The lending rate for the CommerciallIndustrial category was set at 120 percent of
the Standard Income rate.

The procedure outlined above results in the rate structure shown in Table I.

Table 1. Recommended 30-Year Lending Rates for 2000

The municipal lending categories are defined as follows:

Municipal low-income areas are those communities where median household
income (MHI) is less than 80 percent of the statewide MHI.

Municipal high-income areas are those communities in which MHI is greater than
I 10 percent of the statewide MHI.

The municipal standard, or middle-income communities, are those in which MHI
falls between 80 and I 10 percent of the statewide MHI.

Table 2 summarizes the annual lending rate structures adopted by the Board since 1995.

Table 2. 30- Year Lending Rates, 1995 - 1999

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