Restricted Resale Homeownership

With home costs continuing to rise while incomes lag behind, homeownership is fast becoming an impossible dream. The average home sale price in Pierce County is well above $500,000 leaving first-time home buyers priced out of the market, and very little options for moderate to low income families.

Tacoma/Pierce County Habitat for Humanity aims to change that with a new homeownership model: restricted resale.

This new model, structured like a land lease, provides permanent affordability and preserves the homeowners’ initial investment while also providing future generations continued access to affordable homeownership.

Here’s how:

• The homeowner buys only the house—not the land—which makes the purchase price more affordable.
• The land itself is leased by the homeowners, from Tacoma Habitat, in a long-term, renewable and inheritable lease (often a 99-year term).
• Homebuyers agree to ensure the home’s ongoing affordability by:
  • Accepting an annual 1.5% equity cap
  • Offering Tacoma Habitat the opportunity to buy back the home before offering it on the market
  • If/when selling the home on the market, selling only to another income-qualified buyer, at a restricted price

Lower sale price + resale restriction = Lower price at resale = Permanent affordability

To learn more about our homeownership program, please click here.