SOLUTIONS TOOLKIT
DEED RESTRICTIONS
SOLUTIONS TOOLKIT
DEED RESTRICTIONS
Developments can be created with restricted deeds that help achieve local worker housing goals. For example, homes may only be purchased by residents who work in the county, have lived there more than 2 years, are 55 or older, or disabled, and making 60- to 100-percent of the Area Median Income. A variety of housing types can be incorporated based on the financial capability of the applicants prior to construction.
Deed restrictions are currently being used in Kootenai County. Multiple organizations are now able to manage third-party deed restrictions and the use of deed restrictions is being discussed in conjunction with development agreements in multiple jurisdictions.
Though any developer or property owner can create deed restrictions on their own, the Panhandle Affordable Housing Alliance has taken the lead on partnering with private developers to build homes with deed restrictions to ensure access to and continued affordability of housing for workers. More information on PAHA’s private market solutions is available below.
RESOURCES
PAHA MIRACLE ON BRITTON
Miracle on Britton is a community blueprint for builders and cities to understand how to build, sell and manage Fee Simple Shared Equity Homes at below market prices dedicated specifically to middle income households. THESE SHARED EQUITY FEE SIMPLE HOMES CAN BE BUILT WITHOUT FEDERAL FUNDING! This is a 3-way partnership. Think of it as a triangle with 3 essential vertices:
1. THE PRIVATE MARKET BUILDS A SMALL PERCENTAGE OF THESE HOMES IN EVERY DEVELOPMENT.
2. CITIES AND THE STATE PROVIDE COST REDUCTION INCENTIVES FOR THESE HOMES. In return there are deed restrictions including a resale formula that ensures the homes will always be preserved for working households.
3. PAHA MANAGES THE DEED RESTRICTIONS FOR THESE HOMES UNDER THE FANNIE MAE-APPROVED PROGRAM. PAHA is the only Fee Simple Shared Equity Fannie Mae Certified Program Manager in Idaho. (Our Certification Number: FM724-0106)
This FANNIE Certification = sale of these mortgage loans on the secondary market. All mortgage lenders can loan on these homes.
Collaboration between the private market and city/county governments is the feasible way to build these homes. By unleashing the private market’s potential, Shared Equity Fee Simple homes will become a reality and access to home ownership for our middle-class working families will once again be possible.
Britton’s Deed Restrictions Are Simple:
1. Home is designated for a certain income.
2. Home must be owner occupied.
3. A Resale Formula allows wealth creation but protects the home from pricing to the market.
WHY Deed Restrictions? Without a Resale Formula homes initially sold below market will be resold at market value, pricing out future hardworking, middle-class workers. Take Miracle on Britton for example: The benefit of building these homes extends far beyond the first 28 families. Deed Restrictions are a long-term strategy to keep housing aligned with local working wages and prevent the runaway housing costs we’ve seen in Kootenai County and across most of the state.