HousingPolicy.org Forum

May 8th, 2009 from 2:00 – 3:30 PM Eastern Time

Inclusionary Housing and similar local programs frequently produce affordable homeownership units with resale price restrictions designed to preserve affordability for future buyers. These restrictions are often implemented through a deed restriction, covenant, community land trust ground lease or similar mechanism. While these restrictions serve important policy goals, they can complicate the underwriting of first mortgages for assisted homebuyers. Both Fannie Mae and FHA have developed guidelines to facilitate loans for buyers of price restricted homes but the rules and procedures for each are quite different and both require some compromises on the part of program sponsors. While both programs were designed to support affordable homeownership programs, securing approval for any given program can prove challenging.

This webinar will present an overview of the basic requirements for Fannie Mae and FHA approval of price restriction programs including:

Limitations on the types of restrictions which may be imposed
Mechanisms designed to protect the lender's interest in the event that the sponsor must take action to enforce restrictions
Rights of the sponsor in the event that the homeowner defaults on the loan
The webinar will also discuss current efforts to develop improved guidelines for each of these key financing partners.

The event will feature brief presentations from several administrators and time for questions and discussion.

This event is part of a series of webinars organized by the Lincoln Institute of Land Policy designed to help strengthen the implementation of existing inclusionary zoning programs by increasing dialogue among administrators and identifying model practices.

Register for the event here.

Co-sponsored by NCB Capital Impact, The Center for Housing Policy and the National Community Land Trust Network.

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Replies to This Discussion

Here are handouts for the webinar. Guidelines for price restricted buyers from Fannie Mae, FHA and Rural Development.
Barbara Navin from Thistle Communities, one of the presenters in this webinar, mentioned that she has a packet which she sends to new potential lenders to her homebuyers (or homeowners in the case of refinances). A participant asked to see an example and Barbara provided the attached lender letter which outlines their program for a lender and references the Fannie Mae and FHA guidelines which she also attaches.
Rick, Barbara's letter is there but none of the attchments and by her list they are many. Can you get those for us?
People might also be interested in this page on the City of San Francisco's web site which is designed to provide key information for mortgage lenders related to their Below Market Rate homeownership units. They also have guidelines for escrow officers on how to record the restrictions on the HUD1 form.

A video of this webinar is now available online. Please visit:


If you have technical problems accessing the recording, please add a reply here and we can add any further instructions.
Here is the powerpoint that was presented on this webinar.


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