Resale must be to a qualifying buyer at a formula price, or the investment recaptured
What the document says“``(II) at a price that is determined by a formula or method established by the participating jurisdiction that provides the owner with a reasonable return on investment, which may include a percentage of the cost of any improvements; or”
The section adds a new subparagraph (E) to section 215(b)(1) of the Cranston-Gonzalez National Affordable Housing Act requiring restrictions set by the participating jurisdiction and found appropriate by the Secretary, including as to the useful life of the property, that either require any later purchase to be by a qualifying buyer at a price set by a local formula giving the owner a reasonable return, or recapture the investment to help other people, except where there are no net proceeds or they fall short of the assistance given.
What the document actually says“``(II) at a price that is determined by a formula or method established by the participating jurisdiction that provides the owner with a reasonable return on investment, which may include a percentage of the cost of any improvements; or”
The price is set by a formula the local body writes. The owner still gets a fair return. Part of what improvements cost can count toward that.
The other path is to take the aid back when the home is sold. That money then helps someone else. Neither applies if the sale leaves nothing over.
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