1 / 8

Sustainable Homeownership Strategies for Equity Building and Affordability: A Comparative Analysis

Explore the complexities of balancing home affordability with equity building in housing development projects like those led by Burbank Housing and Peninsula Habitat for Humanity. Delve into the continuum of approaches such as shared equity loans, downpayment grants, and permanent affordability models. Consider whether homeowners should retain all or a portion of the price increase, examining the implications for asset building and resale price restrictions. Learn how different organizations approach these issues and the strategies they employ to ensure housing sustainability.

isadora
Download Presentation

Sustainable Homeownership Strategies for Equity Building and Affordability: A Comparative Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Homeownership: Permanent Affordability vs. Equity Building October 7, 2003 Rick Jacobus, LISC John Lowry, Burbank Housing Mark Moulton, Peninsula Habitat for Humanity

  2. Burbank Housing Development

  3. Discussion Question Given the costs and subsidies required, and Burbank’s goals… • How should they handle the potential increases in the value of that home? • Should the homeowners be allowed to keep all of the increase in price? • Should they have to return all of the increase to Burbank? • …something in the middle?

  4. Peninsula Habitat for Humanity

  5. Discussion Question Given the costs and subsidies required, and Habitat’s goals… • How should they handle the potential increases in the value of that home? • Should Habitat be thinking about this differently from Burbank?

  6. Continuum of Approaches Shared EquityLoans Downpayment Grants Forgivable Loans Permanent Affordability Asset Building Resale Price Restrictions Index Formulas Mortgage Formulas Appraisal Formulas Option to Purchase

  7. Burbank Housing Development • Shared Appreciation Loan • Option to repurchase at appraised value • Deferred payments • Buyer repays percentage of appraised value based on loan amount as a percent of initial value.

  8. Peninsula Habitat for Humanity • Resale Price Restriction • Option to purchase at formula price (well below market) • Resale price indexed to CPI (up to 3%) • Habitat provides mortgage with term (length) adjusted to insure affordability to 50% of Area Median Income

More Related