Produce Homes at
Less than Market |
If
Land is $1,000,000 |
|
Homes
manufactured off-site & set up
(A home can be set up at a factory and trucked in, then be set up faster
by a crew controlled by a qualified general contractor for much less than
a custom home or condominium can be built on site, because of the
economies of scale. |
Take
an existing piece of property and split into ten lots. Each lot is now
worth $100,000. A manufactured home can be set up for $275,000,including
permits but without land. Add the split land cost for a total of $375,000
to this point. |
|
Subsidize the price of middle and
lower income housing with a private grant from the sale of upper class homes.
Upper class home is either on same lot or built off-site elsewhere. |
Build
properties to allow for multiple income levels of buyers to purchase &
live there. Some people are willing to pay somewhat under market rates to live there,
because of the ambience and scarcity of regularly-priced homes. |
Selling
lower-priced homes to middle and lower income
buyers
based upon their income. (This helps them to hold it
for years) |
Instead
of obligating people to higher mortgages they can't service in hard times,
and alternately letting them lose their home, and at the same time saying you helped them purchase
it, doesn't matter. |
| "Sweat Equity" of
skilled
qualified buyers. |
Use
the labor and experience of others in the housing industry to help 'build their
own' homes, and then these skilled persons help others build their own homes too;
it creates more
opportunities. |
| Partnering with landowners to assist
in their
land's development and sharing the profit - Allow them the opportunity to
re-purchase a unit on their own land, at a "fair market"
price. |
Entice
many more landowners into the market by giving them a good option on what
to do with their existing older home and property. |
Stop Price from
Escalating Wildly |
PULL
THE PRICE OF LAND OUT OF
THE HOUSING EQUATION |
|
Community Land Trust
owns property |
Reserve the land the homes will
sit on, back from the market place, in order that the price for it levels off and retains a
non-escalating value, because the land itself is no longer on the market. |
|
Restrict future sales price to a
limited percentage increase, by deed, contract, and through membership
regulations. Therefore no immediate resale for a windfall profit is possible upon
a purchase by any buyer. |
Design a formula that ensures the
homeowner builds up equity in the owner-occupied investment but also
receives an opportunity to sell it for more than it was purchased for. Just
don't allow it to be sold for more than it was purchased, right after it
was purchased, by including major stipulations in buyers' agreements.* |
| Non-profit
co-op receives first right of
refusal to repurchase shares upon member sale, transfer or bequest |
This
is just one more level of protection, to ensure that it isn't sold at a
wildly speculative price - some controls. |
| Co-operative ownership of homes in common by
the non-profit organization |
The
homes themselves are not owned individually, but shares in the non-profit
mutual benefit co-operative housing association are. This ensures that all
sellers properties when built the same are worth the same, further slowing
down the market rate prices in the immediate vicinity of the
co-op. |
| Sell
at low enough original price & correct percentage of
"affordable" homes in mix, so the price is below the level of
which an In-Lieu
fee is added on top. |
There
is an "Inclusionary" or "In-Lieu" (of building) fee
that the county tacks on to each project that doesn't meet the county's
goal of all developers creating 15% of their development on-site or equal
space off-site at an "affordable rate" for the lower class. This
raises the market rates of all homes in the area, because then even used
homes add an amount equal to the fee on their home sale. |
*
The lower the sales price, the more "profit-sharing" on the
other end,
when the home is resold by the first owners to the next owners. |
|