Homes That Last
This term is used to describe various forms of retail-restricted housing that are designed to remain affordable for many years, from one income-qualified homebuyer to the next.
What is shared equity homeownership (SEH)?
A homeowner or renter paying more than 30% of their income for mortgage or rent is said to be this.
What is cost-burdened (moderately > 30%; severely > 50%)
This establishes both the process and price for transferring a shared-equity home from one income-qualified homebuyer to another
What is a resale formula?
Experience has shown that this must stay in the picture to ensure affordability protections remain, monitor contract compliance, intervene to correct volations, and provide support for homes and homeowners.
What is an organizational steward?
This form of SEH is achieved through a covenant appended to the homeowner's deed that requires the homeowner to resell to someone from a specified pool of income-qualified buyers for a specified, formula-determined price.
What is a deed-restricted home?
During economic downturns, low-income households are left with less disposable income to invest in this (related to their homes).
What is upkeep, routine maintenance, repairs?
Shared equity housing, regardless of the model, places a cap on this.
What is the amount of equity homeowners receive at sale?
In nearly every case, the sellers of shared equity homes walk away with more of this than they had when buying.
What is wealth?
This form of SEH is a dual model: one party holds the deed to a parcel of land, and another party holds the deed to a residential building located on that land.
What is a community land trust?
In the US, 9 million residents in manufactured homes live in parks where they own their homes but pay a monthly lot rent to occupy the land and tap into the park's utilities. Many residents live in fear of this.
What is park conversion or lot rent increases?
With this type of mortgage, in exchange for DPA or a subsidy, homebuyers are required to share a percentage of the appreciation with the program's sponsor when selling the home.
What is a shared-appreciation loan?
SEH programs have been found to consistently post much lower rates of this than conventional homeownership models and mortgages.
What are foreclosures and serious delinquencies?
The people who live in this type of housing are homeowners, not tenants, albeit homeowners of a special kind. They do not hold title to their individual units, but they own shares in the corporation that owns the housing.
What is a limited-equity cooperative?
Whether a homeowner builds wealth through appreciation depends entirely on the neighborhood in which the home is located, the timing of the home's purchase and this.
What is the longevity of tenure?
This mandates or incentivizes the construction of housing that must be sold or rented at below-market prices.
What is inclusionary zoning?
This includes: 1) A homebuyer's down payment, 2) The "forced savings" a homeowner accumulates in paying down the principal of their loan, 3) a portion of the value of capital improvements, and 4) a portion of the home's appreciation.
What are a shared equity homeowner's proceeds when they re-sell?