They're very different things. With Dream for All, the state owns 20% of the house, and then at resale recoups the initial 20% plus 20% of the appreciation. That's a restriction on the seller, but not the buyer. A deed restriction restricts seller and buyer. - ThreadSky

annepaulson.bsky.social • 59 days ago

They're very different things. With Dream for All, the state owns 20% of the house, and then at resale recoups the initial 20% plus 20% of the appreciation. That's a restriction on the seller, but not the buyer. A deed restriction restricts seller and buyer.

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rafamonsta.bsky.social•59 days ago

That’s true, but my point was that a “deed restriction” is a form of a “resale restriction.” Since deed restrictions limit the seller too. This language could be interpreted to allow a program to be designed either way. I think that’s the point.

annepaulson.bsky.social•59 days ago

12335 (c) (5) "Resale restrictions consistent with the California Housing Finance Agency’s first-time home buyer programs such as the California Dream for All Program, without jeopardizing any of the previously stated goals." That's not deed restrictions. I can't make sense of it in this context.

rafamonsta.bsky.social•59 days ago

There are many CalHFA home buyer programs; it could be something as simple as a deed restriction requiring owner occupancy.

rafamonsta.bsky.social•59 days ago

I was also imagining a silly program, not necessarily like dream for all, where the first resident/owner has a sale price restriction, but the second buyer does not. An equity sharing arrangement to pay back the construction loan makes more sense for financing reasons.

annepaulson.bsky.social•59 days ago

What would that program be, for example? I cannot make sense of a demand-side solution to a supply-side tax credit. How do you allocate the equity? It could well be that the house sold at what would be the market rate, and there's no way to get back the tax credits.

rafamonsta.bsky.social•59 days ago

Dreams for All is equity sharing. Sorry, limited characters make this discussion difficult to explain succinctly.

annepaulson.bsky.social•59 days ago

Dreams for All is demand side. The buyer gets a loan. This program is supply-side; the builder gets tax credits to build something at a price that wouldn't otherwise be feasible. Which equity are you sharing here?

rafamonsta.bsky.social•59 days ago

Maybe it’s a combination: tax credits for the builder and the state shares in equity for the homes with a loan program to purchase the homes built with those tax credits. Maybe the equity sharing can help subsidize the tax credit program long term.

rafamonsta.bsky.social•59 days ago

The absurd program would be where, for some reason, the govt limited the first resale price (and its own potential return as an equity holder) but there was no deed restriction: the 2nd owner would benefit more than the first. It’s just a dumb thought I had that’s “consistent” with CalHFA programs

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