Read the scenario and answer the question. A community in rural Georgia consists primarily of low-income and middle-income families, as well as a few high-income families. None of the families rent the homes they live in; most own their homes outright, while some have mortgages they are in the process of paying off. A decision was recently made to construct a new high-tech elementary school in close proximity to the community. As a result, property values in the community have begun to increase drastically. How are these developments likely to impact the community?

O The increase in property values will result in lower property taxes, which will enable homeowners in the community who have a mortgage to more quickly pay off their debts and gain complete ownership of their homes.

The increase in property values will result in higher property taxes, which may result in low-income and middle-income families losing their homes and being replaced in the community with high-income families.

Because property taxes are progressive and determined by income level as well as property value, high- income families may be unable to afford this increased tax bill and choose to relocate to another community.

Because property taxes are only assessed on property that one owns outright, the community is likely to become populated by more families who have mortgages over time as property values continue to increase.