Basics of shared equity

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Permalink Reply by Andy Slettebak on March 9, 2009 at 7:08am

I would recommend three websites, including our own here at Institute for Community Economics (ICE). All three focus on community land trusts and offer several links to related resources:

www.cltnetwork.org
www.burlingtonassociates.com
www.iceclt.org

Andy Slettebak
Director, ICE
202 333 8931 x135

Permalink Reply by Ryan Sherriff on March 10, 2009 at 11:43am

Michelle:

Could you be a little more specific about what type of shared equity homeownership model you are interested in? That way I may be able to point you to more tailored resources.

In the meantime, you may want to take a look at the suite of resources on shared equity homeownership provided by the Center for Housing Policy (http://www.nhc.org/housing/sharedequity). This includes an overview of the different shared equity models and a spreadsheet you can use to test out different models as they apply to your community.

For more general information on shared equity homeownership, I would suggest the Shared Equity Mechanisms section of HousingPolicy.org (http://www.housingpolicy.org/toolbox/strategy/policies/shared_equit...).

Permalink Reply by Michelle Allen on March 18, 2009 at 11:31am

Thanks for the info. Let me start here before I try to get more specific. In general, we are looking
for ways to address middle income affordable housing needs.
Michelle

Permalink Reply by Getabecha Mekonnen on March 31, 2009 at 3:48pm

Michelle thanks for the question. TO the group: As a follow up to the original question...while equity sharing seems to be a good policy from the stand point of long term affordability and stock of units does it work better in certain markets ? where has it worked well and may not work as well?

Permalink Reply by Ryan Sherriff on April 6, 2009 at 1:48pm

In addition to its prevalent use in preserving affordability in strong, high-priced housing markets, shared equity homeownership has many applications in markets that have declined, or are still in decline.

Since shared equity homes are sold (usually over the long term) at below-market prices, they buffer shared equity homeowners from price declines to some extent. Also, many shared equity programs employ loss-sharing/loss-preventing mechanisms that can mitigate losses to owners when they must sell their homes during steep price declines.

Even in traditionally weaker housing markets, the provision of shared equity homes in and around growing transit or job centers could be very useful to ensure the future availability of affordable homes in these areas where prices are likely to rise. Shared equity homeownership could also be used in lower income neighborhoods that are starting to gentrify, in order to sustain ownership opportunities for low- and moderate-income families. For more information on shared equity applications in weak housing markets, as well as conditions under which the use of shared equity may not be advisable, visit www.housingpolicy.org/toolbox/strategy/policies/shared_equity.html?...

Likewise, I would be interested in hearing from practitioners who have had experience implementing shared equity homeownership programs in various types of housing markets.