In many affluent communities where cost of housing has been climbing out of reach for many, use of Deed Restrictions has proven to be a successful way of addressing high cost of housing.
Deed Restriction is a provision that controls the use of real estate. This provision continues to remain with the deed after a sale, refinance or a foreclosure. It has proven to be the tool used for adding and preserving the Affordable Housing stocks in cities and towns. Local Housing Authorities (LHA) aim is to increase the supply of Affordable Housing to 10% of total housing units. The original sale price is set by the builder and the LHA. If the buyer decides to sell, the selling price is again set by the LHA.
Since the sale price is not a reflection of the market forces (demand and supply), it becomes a challenge to establish a value opinion. We at Peabody Allied Appraisers have experience in valuation of new houses, re-sells and refinance of Affordable Housing.