Re: Cap on resale of homes
From: Leah (
Date: Wed, 18 Jan 2006 08:41:36 -0800 (PST)
I can answer this I think because I was once given the assignment to research 
this for Fordyce Street cohousing. We happen to be in an area in which home 
prices are very high so our homes will be under market value. We will be tying 
our equity limits to the percentage of market value at which we sell our homes 
(so if my house is finished and the cost is 80% of the appraisal when I sell it 
we appraise it again and it can be sold at 80%) This is not common. Most resale 
caps are done on low income units to keep real estate that is subsidized from 
being turned around by the owners for windfall profits. Those are usually tied 
to the consumer price index, which is only about 2%/yr. You might hit some 
problems finding lenders if you do this on free market homes, but it isn't 
impossible and there are some lenders that work with low income homes that are 
used to dealing with it.

perri ardman <perriblaze [at]> wrote:  Hi -- 

Looking for ideas about how to set a cap on resale prices. We want to 
discourage speculators, encourage affordable prices, and not create hardship 
for owners who want or need to sell. Is there a suggested percentage over and 
above the original price the owner paid? Is there some formula that might 
relate to the market value or rate of appreciation of real estate in the area?

Thanks. You can send responses to perriblaze [at]

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