Re: Affordable home ownership models
From: Ellen Keyne Seebacher (
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 (  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 :-)

Ellen Keyne Seebacher                   elle [at]

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