The resale procedures for deed restricted properties are generally designed to preserve the affordability of the unit while providing the seller with a return on their investment. This means that the affordable housing program goal is to restrict the sales price so that the owner realizes a profit while insuring that the price will be affordable to buyers at the targeted income level.
The methodologies designed to achieve this balance have changed over the years, and individual deed riders need to be consulted to determine which resale price formula will be used for an individual unit. Read the resale price calcuation section carefully as there are variations in the process depending on the year you bought your property and/or the particular housing program that was used. If you cannot locate a hard copy of your deed rider, you can find it at the registry. For properties in the Regional Housing Services Office area, click on South Middlesex on the map or in the dropdown box and search on your name or address. The deed rider is typically part of the document labelled DEED in the search results.
The Monitoring Agent is responsible to assist owners in the resale process – including calculating the Maximum Resale Price and listing your unit with an affordable housing resale agent. Generally there is a resale fee noted in the deed rider which will compensate the agent for the resale process. This is a specialized sales process that is different from market rate sales.
The process starts with a notice provided by the seller to the Monitoring Agent along with the needed information.
The DHCD LIP Resale Instructions provide the instructions for LIP units where the Maximum Sales Price is calculated using a Resale Price Multiplier. Older (before 2006) units use a Discount Rate methodology which uses the stated discount percent from the appraised value of the unit. DHCD's Resale Instructions for Discount Rate Units explain that an appraisal is needed. In all cases, it should be noted that the Maximum Resale Price is a maximum. The individual unit features and condition plays a role in the resulting sales price of the unit.
Please feel free to contact the RHSO for further questions or comments.