Across the country, hundreds of nonprofits, state and local jurisdictions are operating programs that help families buy homes today, maintain those homes, and keep them affordable over the long-term. Common long-term affordable homeownership models include deed-restricted housing, community land trusts, limited equity cooperatives, and shared-appreciation loans.
But these long-term affordable homeownership programs face a common set of challenges including:
- Ensuring that buyers understand affordability restrictions, and that those restrictions are fair
- Assuring that homeowners do not end up in predatory loans
- Protecting the public investment in the event of foreclosures
- Avoiding confusion or misunderstandings when local programs have different requirements
- Planning and managing the cost of staffing for adequate monitoring and support
Programs that carry out active stewardship minimize these risks. Stewarded homeownership programs work with buyers before and after they purchase their homes to ensure that they are well-prepared for homeownership, financially responsible, and able to maintain the property. Stewarded programs also protect the community (or public) investment by monitoring the physical asset and enforcing program requirements over the long term.