Based on the results of a lot-owner survey and on data from public records and other sources relative to the development of a second-home community in Lake Latonka, Pennsylvania (begun in 1964 and sold out in 1966), economic impacts were estimated by applying appropriate income multipliers to reported use and development expenditures. It was estimated that the 1,275 acres of crop and pasture land which were transformed into a second-home recreation community could produce the following effects: (1) the development would generate $14 million in business activity before 1970, with less than 40 percent of that total accruing to local business; (2) financing of development activities would have a significant impact on the local area; (3) variable use and special use expenditures of homesite buyers and their guests would generate $2.6 to $6.7 million in economic activity during 1965-70, with half of this total accruing to local business; (4) after 1970, use expenditures would generate $0.5 to $1 million annually; (5) maintenance expenditures would produce $0.3 to $0.6 million of gross business activity annually by 1975; (6) existing school facilities would be sufficient through 1975, but by 1975 or 1980 could pose a problem for adjacent communities if Latonka failed to provide for its own needs; (7) the development probably would have little or no effect on the value of agricultural output. (JC)