kevin anderson bwh dc 2011

About City First Homes

2006 DC Workforce Housing Act

Portfolio of Permanently Affordable Homes

Shared Appreciation Model

Support buyers up to 120% AMI

Subsidize UNIT, not the buyer

Choice

Build wealth

Steppingstone

Community

How City First Homes works…

Down Payment Assistance Loan

$75,000 fixed

3.79% fixed

40 year term

Down Payment Assistance Loan

$75,000 fixed

3.79% fixed

40 year term

Interest-only payments years 1-7

2% cash required for purchase

If you and when you choose to sell, you keep:

• 100% of principal paid on mortgages

• 100% of value of improvements

•25% of appreciation (75% stays with unit)

•Little or no selling/closing costs

SUCCESSES

• 33 Units Sold since July 2010

• Significant Project Investment

• Proof of Concept in Urban Environment

CHALLENGES

• Introducing Shared Appreciation as 3RD sector of Housing (Traditional Homeownership; Shared Appreciation; Renting)

• Leveraging grant funding

• Scale

1. Lower monthly costs2. Reduced upfront costs - only 2% of home price3. Qualify for “more home”4. Reduce or eliminate PMI fees5. Save on closing costs at sale 6. Build wealth

a. Equityb. 25% appreciationc. Tax Benefits

6 KEY BENEFITS