DEED RESTRICTION
As a deed restricted community, homeowners have the opportunity to fully own their unit, allowing them to build wealth and develop a connection to their home, while being able to retain affordable prices for future generations.
Deed Restrictions are a limitation on how you can use your property to ensure that the unit is used as intended. Compared to other models for community centered homeownership, deed restrictions allow the most freedom for the homeowners. For example, deed restrictions allow homeowners to own the unit, and the land that it is on, but with some restrictions that limit what the homeowner can do with the property. These restrictions allow a governing body, like an HOA, to build community and aid first time homeowners while giving them guidance in their journey.
Our deed restriction helps to ensure that individuals at various incomes levels will have access to our top of the line units and houses. Income-diverse communities provide varying skills, experiences, and understandings that foster positive experiences for all parties. We use our deed restriction to ensure our buildings and developments have spaces for those in varying income groups, even if homeowners sell their properties in the future. We are committed to seeing generations of families find their home in our communities regardless of the size of their income.
Sample Deed Restrictions
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Example Clauses:
Clause on subsidized housing:
In compliance with the requirements of Seattle housing policy, the deed restriction shall be recorded against the property comprising Orchard Commons. Said deed restriction shall limit the rent and occupancy of units in accordance with the requirements of housing policy. The term of said deed restriction shall be in perpetuity, and shall stand independent of this Agreement. The deed restriction shall only affect the subsidized units and shall stand in addition to any restriction imposed by this Agreement.
Clause on selling:
When an owner of a property wishes to sell their unit, it must be sold at the same AMI percentage that the unit was originally sold for as specified in the original mortgage. The price of selling will be consistent wealth appreciation, with a focus on the value of materials and land, rather than earning a profit.
Clause on Use of Unit:
The unit will be only used as a primary residence for the occupant and will not constitute as a secondary residence. Moreover, the residents will not be permitted to sublet or rent out their unit to ensure that the owners are the ones occupying the unit.
Clause on establishing HOA/management model:
The community establishes a Homeowners Association (HOA) as its management model. The HOA is responsible for city utilities such as trash & recycling, the maintenance of common spaces, landscaping, promoting community, and assessing fees and the affordability of the units. They are funded through dues which are factored into the monthly payments on the property. It will initially be composed of members from each AMI group, with two at large members that come from any income group.