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<br />ANALYSIS 55 <br /> <br />Provision of Housing <br />The basic elements in the typical housing production and delivery system <br />in a small community are preparation (land acquisition, planning and zon- <br />ing), production (site preparation, utility construction and financing), <br />distribution (sale and subsequent resale and refinancing), and service <br />(maintenance and repairs, improvements, and additions).* In most cases, <br />this system operates at a level sufficient to meet minimum housing needs. <br />However, it is inadequate to meet accelerated demand generated by energy <br />development. <br /> <br />The provision of both temporary and permanent housing in energy-impacted <br />areas can be approached in three steps: <br /> <br />(1) Stimulation of traditional sources of financing, home build- <br />ing and mobile home park development. <br /> <br />(2) Effective use of existing federal, state and local housing <br />programs. <br /> <br />(3) Participation of energy developers and their prime contractors. <br /> <br />Stimulation of traditional housing industry. There is evidence in many <br />smaller energy-impacted communities in the Rocky Mountain Region that tra- <br />ditional approaches to providing housing have not functioned adequately. <br />There is usually a shortage of mortgage money from local financial insti- <br />tutions, and a reluctance on the part of larger institutions in major <br />cities to commit funds to boom towns. The local home building industry <br />cannot usually satisfy, in a timely fashion, the demands for large numbers <br />of new homes; and providing a sizable number of mobile home pads may not <br />represent an attractive investment opportunity if anticipated needs for <br />these pads are of short duration. One of the most damaging effects of <br />the typical energy-impacted boom town in the Rocky Mountain Region has <br />been the astronomical inflation in housing costs, especially site <br /> <br /> <br />, U.S. Government Printing <br /> <br />0414 <br />