Value of an Affordable Housing Unit

[Tom D]

j grant, i was talking about other affordable house projects within 5 miles. These are typically done in urban areas that have low values. We have them here in pockets all over the lower end areas. This has been going on for a long while in urban areas. They are not listed in the MLS as affordable, if they are there, you have to hunt for them. They have list of buyers, don't have to sell thru the MLS, but i have seen some larger project that used the MLS also. You need to be pre qualified to get one.

 

[J Grant]

j grant, i was talking about other affordable house projects within 5 miles. These are typically done in urban areas that have low values. We have them here in pockets all over the lower end areas. This has been going on for a long while in urban areas. They are not listed in the MLS as affordable, if they are there, you have to hunt for them. They have list of buyers, don't have to sell thru the MLS, but i have seen some larger project that used the MLS also. You need to be pre qualified to get one.

We have the program here, too=I have watched over the years and seen it lift an entire neighborhood out of poverty and into a higher value range, with other new construction encouraged. I assume whatever funds the city uses as the grant to purchase is made up later in higher property taxes or a share of the resale of the homes -

 

[Tom D]

Well, it's a HUD gift program basically and the banks, forced to, also help with settlement costs. The city uses no city funds here to do them. There is no share of profits after a certain time period. They figure you were brave enough to move into that neighborhood, it's combat profit. I looked into it, but you had to be a non profit or politically connected to do them here.

They don't lift the neighborhood out of poverty, it's the nearby gentrifying streets that get rid of the poor, as they get closer to the ungentrified streets. Personally i think they are a waste of tax payer money. The amount built is statistically too micro of a number to have any affect on the overall neighborhood. I speak as a rehaber and having built in this city.

 

[Artemis Fowl]

Post #4

 

[Nancy Heiss]

I spoke with my client, who confirmed they want market value. I have included excessive verbiage on the deed restrictions for Affordable Housing, and Fannie Mae's selling guide. I have to shake my head though. Who thinks $725,000 is 'affordable housing'? For an attached 1500 sf unit?

 

[J Grant]

I spoke with my client, who confirmed they want market value. I have included excessive verbiage on the deed restrictions for Affordable Housing, and Fannie Mae's selling guide. I have to shake my head though. Who thinks $725,000 is 'affordable housing'? For an attached 1500 sf unit?

Regardless of what the client says, I always include two values in these situations: the market value as the primary value and then a second value as affected by the deed restrictions. I hope you disclosed the deed restrictions and that the value opinion would be different in considering -

Don;t be surprised if they come back and ask for a second value as affected by restrictions -

 

[Nancy Heiss]

Regardless of what the client says, I always include two values in these situations: the market value as the primary value and then a second value as affected by the deed restrictions. I hope you disclosed the deed restrictions and that the value opinion would be different in considering -

Don;t be surprised if they come back and ask for a second value as affected by restrictions -

Good advice. I was thinking of doing just that, providing a 2nd value within my comments. But I won't be surprised if they ask me to remove it as 'confusing'.

 

[J Grant]

Good advice. I was thinking of doing just that, providing a 2nd value within my comments. But I won't be surprised if they ask me to remove it as 'confusing'.

You can put it in , or reference that it is in the work file along with comments -