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sor�ne part� of the eountry, notably� the Last, it is possible to purchase a atructuxa�lly sound house for probably less e ould bun anrohw house fo FoY• example, in Philadelphia or Baltimore, on Y $?, 00t� or $8, 000 which was ba�ically soun � bmuch se$1Q, 000 into this renovatior� and r�:habilitation. E�y p�utting house the total debt would not b� a prohibitive amount in tei°ms of month�y pa�r�ents. Ho�we�er, in this p'and more likely arou d$12 �000. wo�th renovaiing for less than $10, 000 , (The typical median p� operty value in d Sap t Pau?� is $10 f 000 S$11 , 00. re ha bi li t a t i o n a r e a s i n M i n n e a p o l i s a n T h e worst areas di p to slightly below $9, 000. ) Consequently, put�ing $10, 000 into this price home w�uld boos� a�ticularl� an r lation� to heir Thus, because of the cost of hor�es and soun ness an t e o construction, this ro ram mi ht not e as wor - a e here as in other. parts o the country. What are the px�spec'ts for this prograrn? Based upon the results of this iMquiry, they are not bright, but there are some hopeful signs. First, it ��ust be remembered �hat some lenders plan to do business under this program, and a iew more show signs of interest. As pre- vious l� � m f+ n t i o n e d, t h e � o m m e r c i a l bailks are a bi g question mark. (It is intended to sound them out on this point in future work. ) Despite t he general pessimism of most lenders, a few believed that the program would take hold. Second, it is *,he n�atucomf e tio lmakesl t ne � ssary fence s tr a d d l e r s a n d f o l l o w e� s. I f t h e p t o m a k e such loans , thes e institutions �ea at. S°iU'nbortunat lyS t his as a "customer service", as on� lender ter prograzn must be utilized on a much greao besa hieved this atti`ucle implies if the pro�ram's objectives are t If this program is to have an c� ha►;�ce of success, it will require an all out coordinated effort on the part of the local FHA office, the housing anc�redevelo ment autharities , the c ity governments , lenders in the lending ield, and civic groups, who have a stake in the city. Most signs indicat� that this program will not get inoving �imply as a natural course of events. If g'HA gives only casual attention t� it, it is un- . likely that it will yiel.d significant xesults. Overcoming the obstacles wnich are paramount in the lender's minds • will require more than a Madison Avenue sales pitch. Cor�centrated public policy and action directe�l toward raising the quality of rehabili- tation areas is essential in ord�r to help j�e�fY Des ate the fact thatnd provide some sense of security for the Ien P such loans are government insured, mo5t 1 uenc es � d faultst and nd where tliey believe that a high rate of delinq fore�clo�ures will occur. 'The other side of this relationship must be mentioned; there must b� borrower5. V�Therea.s, there is at present quite a bit of ignorance about this program among lenders , this is nothing compared to the consum- ers' ignorance. Thus, potential borrowers must be informed about the 35