Long-term affordability may be kept through a shared equity or land trust model
What the document says“``(iii) maintain long-term affordability through a shared equity ownership model, a community land trust, a limited equity cooperative, a community development corporation, or other mechanism approved by the Secretary”
The section adds a clause to section 215(b) of the Cranston-Gonzalez National Affordable Housing Act allowing long-term affordability to be kept through a shared equity ownership model, a community land trust, a limited equity cooperative, a community development corporation, or another mechanism the Secretary approves, including through purchase options, rights of first refusal, or other preemptive rights to purchase.
What the document actually says“``(iii) maintain long-term affordability through a shared equity ownership model, a community land trust, a limited equity cooperative, a community development corporation, or other mechanism approved by the Secretary”
A home can be kept affordable in more than one way. A land trust is one. A cooperative with limited equity is another. The housing agency may approve others.
These models cap what an owner can sell for. That keeps the home within reach of the next buyer. The group may also have first call on buying it.
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