For the last few months, I’ve been working closely with our partners at the National Community Land Trust Network and Julie Brunner to develop a new resource on resale formulas. As many of you know, there is no universal resale formula that works perfectly in every market at all times. Rather, each program needs to consider how an index based, appraisal based or fixed rate resale formula will work in its local market for its target population. We saw a need to create a guide that documented the basics of resale formulas after the work we’ve done with our Cornerstone Homeownership Innovation Program (CHIP) grantees on their resale formulas in the past three years of the program.
I am excited to now share The Balancing Act: Resale Formula Options for Long-Term Affordable Homeownership Programs with all of you. This new guide provides an overview of the goals of and need for a fair, well-tested resale formula for affordable homeownership programs that value preserving subsidy while also building their homeowners’ wealth. Here are the top five reasons that I think you might want to check out this new guide:
- It’s brief. At 8 pages, this guide is a great, quick refresher on the different types of resale formulas in use across the country.
- It’s comprehensive. Each one-pager for the fixed rate, index based, and appraisal based resale formula contains a summary, sample formula language, an example, and a list of pros/cons.
- It’s from the field. The guide contains short examples of how different types of resale formulas work “in the field,” including some examples of how organizations shifted from one resale formula to another.
- It’s relevant to your work. Is your organization just starting to develop a long-term affordable homeownership program, and you need to select a resale formula? Or, have recent changes in your local market had unexpected impacts on the resale formula you’ve used for a long time? Either way, this is the guide for you!
- It’s for everyone. Use this guide to educate new staff, partners or Board of Directors members.
I’m sure there are many more reasons that make The Balancing Act a useful guide. Feel free to share them in the comments, or let us know what similar materials could be valuable to you.