|Re: Affordable home ownership models||<– Date –> <– Thread –>|
|From: Ellen Keyne Seebacher (ellepobox.com)|
|Date: Tue, 13 Aug 2013 23:32:21 -0700 (PDT)|
On Wed, Aug 07, 2013 at 08:11:29PM -0700, Rebecca Lane wrote: > In each of these models, someone other than the resident pays the > full cost of construction. ... > If you're interested in the most cost effective affordable housing > model, the community land trust (CLT) model is it. The subsidized > investments are a one-time event, and in exchange for a below market > purchase price, the income qualified homeowner agrees to a very > limited equity ownership proposition. Thus, the subsidy stays with > the dwelling at resale, to benefit another's come qualified > owner. (With every other subsidized model, the subsidy dollars are > privatized.) > A CLT owner can live in the home as long as they wish, and can win > the lottery the day after they close; they simply cannot sell for > full market profit. This model takes both the market risk and the > market reward out of private, for-profit home ownership, and treats > the asset, the dwelling, as a community resource, to be used by many > families over it's useful life. This is actually exactly how "40B" (income-restricted, affordable homes) work in Massachusetts. When we built Sawyer Hill Ecovillage, we all contributed enough money to make 25% of our units available, at prices below construction costs, to people meeting state-defined income restrictions (http://www.sawyerhill.org/40B). Anyone who buys a 40B home must have limited assets and a low to moderate income *when they apply*; once they've signed the papers, as you say, they could win the lottery and still own the home -- but cannot resell for more than the prices set by the state. (The only issue is that buyers must also offer a down payment and qualify for a mortgage, though the Massachusetts Housing Partnership can assist with "soft second" loans.) We still have three affordable units left, for folks who are interested! For more information, see http://www.sawyerhill.org/forsale :-) -- Ellen Keyne Seebacher elle [at] pobox.com
Affordable home ownership models Rebecca Lane, August 7 2013
- Re: Affordable home ownership models Ellen Keyne Seebacher, August 13 2013
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