1 / 15

Community Preservation Act Affordable Housing Restrictions

Community Preservation Act Affordable Housing Restrictions. Community Preservation Coalition Wayne Feiden, AICP Director of Planning & Development City of Northampton WFeiden@NorthamptonMA.gov. Source: Bonnie Heudorfer. Why affordable housing?. Needed for people AND jobs

ronli
Download Presentation

Community Preservation Act Affordable Housing Restrictions

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. Community Preservation ActAffordable Housing Restrictions Community Preservation Coalition Wayne Feiden, AICP Director of Planning & Development City of Northampton WFeiden@NorthamptonMA.gov

  2. Source: Bonnie Heudorfer Why affordable housing? • Needed for people AND jobs • Local control under MGL 40B < 10% state goal= lose local control • CPA requirement

  3. Habitat Mixed Use Homeless shelter, condo & offices SRO & retail

  4. Affordable Housing Restrictions:What are they about? • Ensure conditions of approval remain • Customize for any need (in theory) • Rental versus home ownership

  5. Affordable housing restrictions versus other restrictions • More complicated • Generally not permanent • Homeowner equity • Proper maintenance

  6. X % Affordable Housing RestrictionAs Percent of Market Rate

  7. X % Cons: • Not affordable to new buyer when housing goes up fast Pros: • Simple to understand • Easy to implement • Homeowner can recapture some of equity

  8. Keeping affordable housing affordable – AMI Method X %

  9. X % Cons: • Marginal equity Pros: • Property remains subsidized in same income bracket • Slight equity gain

  10. Variations • Balance affordability and equity • Community Land Trust • Limited Equity Housing Cooperative

  11. Local Median Family Income

  12. Basic Structuring Issues • Length of restriction • Ownership restrictions • Target eligibility (maximum income) • Minimum income • Resale (future buyer, resale price) • Foreclosures

  13. Other Issues • Subordination – banks often do NOT subordinate • Monitoring – Whose job is it? • Owner/Tenant Selection - Affirmative marketing - Lottery

  14. MassHousing/Fannie Mae Model • For Fannie Mae mortgages only • Home ownership • NO subordination to mortgage required • Carefully reviewed and proven language • Less flexibility to change terms

  15. Challenges • Limited models • DHCD and Fannie Mae • Very complicated • CPA housing usually gap, bridge, and component funding • Primary lender/funder’s restriction governs • Monitoring • Local preference, marketing, lottery

More Related