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Housing affordability, and the cost, qualifying and associated issues such as <br />credit appeared to be the most pressing issues faced relative to acquiring <br />housing of one's choice. The increase in home foreclosures can be linked to <br />predatory lending as a significant aftereffect of those lending practices. <br />Adjustable Rate Mortgages (ARMs), interest only loans, one hundred percent <br />loan -to -value mortgages, and other mortgage instruments that enabled large <br />numbers of families enter into homeownership have become burdens to many as <br />the housing bubble proved to be unsustainable. As the Community Profile points <br />out, a number of San Marcos homeowners have lost their homes to foreclosure, <br />many as a direct result of these lending practices. However, with this unfortunate <br />state of the economy come opportunities for others. Relative bargains have been <br />available to families as these foreclosed units are put back on the market. <br />Investor purchases are common, with these homes being marketed as rental <br />units, but where a family has been able to save enough for a down - payment and <br />has avoided sub -prime mortgage products, some have been able to take <br />advantage of the bursting housing bubble to find their own opportunities. <br />Review of City development regulations and practices revealed no significant <br />policy barriers to affordable housing. These policies include land use controls, <br />zoning ordinances, building codes, fees and charges, and tax policies. No <br />excessive, exclusionary, discriminatory or duplicatory policies, rules or <br />regulations were found that constitute barriers to affordability. However, in an <br />effort to expand local resources, we also recommend that the City initiate an <br />effort to research and consider one particular policy change, inclusionary zoning, <br />as one alternative means of promoting balanced housing development. <br />Inclusionary zoning has been used in other communities to ensure that some <br />portion of new housing development is affordable. <br />xi <br />