Affordable Covenant Summary
All First Home and Homeworks homes come with affordable covenants that ensure that the homes remain affordable into the future. Although the homes’ resale prices are restricted to keep these homes affordable, the value of the home may increase based on a resale formula.
Covenant Key Points:
- The buyer must accept all the terms and conditions of the Covenant.
- The owner/seller of an affordable unit must sell to an eligible buyer who is income-eligible and qualified to purchase a home.
- Marketing Period – The owner/seller agrees to market their home for 30 days and to abide by the city's lottery process
- The City's Option to Buy - The city has the first option to buy your property or to assign that right to an eligible buyer.
- Resale Price – The resale price of the home will be determined by City of Boulder according to the terms outlined in the covenant.
- Limited Appreciation – appreciation is limited to the change in Area Median Income (AMI) or the Consumer Price Index (CPI) whichever is less; and capped at 3.5 percent per year. With any property sold, the condition of the home and closing terms may result in a selling price below the maximum set by the city.
- Capital Improvement Credit – You may make any improvement that you wish, however, only eligible improvements outlined in the annual Capital Improvement Policy will be added to your resale price. Please remember that you should contact the city before making an improvement.
- Excessive Damage charge – Excessive damage will be deducted from final resale price.
- Agree to maintain the home.
- Occupancy- You must occupy your home as your primary residence
- After the initial five-year period, you may rent your home one year out of
- You may rent a bedroom if you are also occupying the home, providing no city codes are violated.
Last Updated on Wednesday, 25 July 2012 10:40