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There are numerous strategies that can be used to keep housing affordable. Most of these strategies can be found in various types of affordability covenants. Most housing organizations use a combination of one or more strategies in their covenants. Here are some strategies that I have come across in my research:
There are numerous strategies that can be used to keep housing affordable. Most of these strategies can be found in various types of affordability covenants. Most housing organizations use a combination of one or more strategies in their covenants. Here are some strategies that I have come across in my research:
- Limiting the resale price of the home
- Allowing an organization such as an affordable housing or community development organization to serve as an intermediary to find a qualified buyer for a home when it goes on the market
- Holding the land under the building in trust but the homeowner owns the home itself (community land trust model)
- Placing a right of first refusal on the home so that an entity (town or housing organization) has the right to purchase the home if it goes on the market
- Stipulating that a home must be occupied year-round
Resources:
Resources:
A comparison of the different types of formulas for limiting the resale price of houses. http://www.burlingtonassociates.com/#!/resources
The section of Maine law that allows qualified organizations such as ICDC to place restrictions on properties that limit the resale price and ensure that the properties remain affordable: https://legislature.maine.gov/statutes/33/title33sec121.html
North Haven Sustainable Housing has a good write-up about the purpose of affordability covenants: http://www.nhshousing.org/affordability-covenants
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