[quote=urbanrealtor][quote=SDEaves]These income-qualified units are being sold for 20 percent less than regular sale units.
No holding clause but they would only be able to resell their unit to another income-qualified person/family.
When you go to sell your regular unit, would those affordable housing comps be excluded from comparison to the regular sale?
Seems like there should be some special provision to protect regular resale but not sure?[/quote]
Re resale:
Typically, the units I have dealt with, have a 40 year deed rider that ties the resale value of the property to the median county income. That means that if values spike, you sell at the income-defined price (which would be below market). Likewise, if the values tank, you sell ABOVE market (or, rather, fail to sell).
In other words, you have all the risk of being a homeowner with virtually none of the rewards (except static cost of housing). Without some speculative potential reward, there really is not a huge incentive to buy.
Re appraisal:
By definition, the affordable units are not open market sales. However, not all appraisers know about this program and not all listing agents mention it in the remarks. Therefore, I have had multiple appraisals plopped on my desk when my loan officer (who has the desk next to mine) says “What the fuck is this?!!!”.
In other words, it shouldn’t affect normal sales but in practice it does because the deed riders and restrictions don’t show on databases as they should.
I am a liberal and a believer in government helping the less privileged.
This is not an example of that help.
This is a terrible program and only will cause hurt to owners.
Avoid it.[/quote]
Ah, the Piggs thank you, UR, for your predictably wise “in-the-trenches” counsel on this rather “thorny” subject. As I suspected, what happens on the street and what should “theoretically happen” are often night and day from one another 🙂
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SDEaves, I take it you did not purchase the SFR’s, PUD or the Tierrasanta townhome you were considering back in October:
… you never let us know the outcome of which type of housing you actually decided on ;=]
The fact of your price range being ~360K was the catalyst which led you to a project such as the one you viewed over the weekend, IMHO. This sort of implies that you are leaning towards any new construction which could be found in your price range.
Since you stated you have been looking for a residence for more than a year, would you mind filling us in on the results of your recent search since your last threads? 🙂
