The term Affordable Housing is referred to the program that is a partnership between Federal, State and the Municipal Governments. Known as Chapter 40-B program in Massachusetts. It is intended to address Affordable Housing needs for low and moderate-income households. Cities and towns receive financial assistance to give developers of multi-unit residential developments an incentive to build affordable housing. Before issuing a permit for a new development, the Municipality will waive some of the zoning bylaws allowing more units, if 20-25% of the units are affordable. Affordable classified houses sell at 31% or more below market values. Deed Restrictions are placed to keep and increase the supply of affordable housing. Municipalities aim to achieve 10% affordable housing. Qualified buyers are first time buyers with Income and asset restrictions.

The definition of Market Value does not apply to Affordable Housing. Prices are based on agreements between the builders and the local housing authority, area income levels etc. Re-Sale and Refinance values are also set by the Housing Authority. Deed Restrictions have a negative effect on value since it is intended to maintain affordable values. This makes the preparation of the Appraisal Report a challenging process. Peabody Allied Appraisers has provided valuation services to new developments, re-sales and re-finance of properties with Deed Restrictions.