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Spoke with a home owner in one of those White House’s, they’re currently in the process of trying to sell. They initially bought for 200k , and apparently they can only keep their equity if they sell after 10 years, if they sell anytime before the 10 year mark, they can’t sell for any profit. Sucks that the city is handcuffing “home owners” in this program. What’s the incentive for them to stay in these houses If they Are not able to stay in the house for 10 years (job relocation, growing family etc.) ? Their essentially renting a home from the city, very unique/bad deal in my opinion. 

 

Are there any other programs like that in the third ward? 

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7 minutes ago, DJ Please said:

Spoke with a home owner in one of those White House’s, they’re currently in the process of trying to sell. They initially bought for 200k , and apparently they can only keep their equity if they sell after 10 years, if they sell anytime before the 10 year mark, they can’t sell for any profit. Sucks that the city is handcuffing “home owners” in this program. What’s the incentive for them to stay in these houses If they Are not able to stay in the house for 10 years (job relocation, growing family etc.) ? Their essentially renting a home from the city, very unique/bad deal in my opinion. 

 

Are there any other programs like that in the third ward? 


It seems the original purchase price was subsidized by a government program (or possibly a subsidized loan program with below market rates and/or equity requirements). 
 

it would defeat the purpose of these programs if one were to qualify for this and then immediately flip it to a market rate buyer. 
 

in any event, I’m sure the buyer knew this when they signed up for it. 

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2 minutes ago, HNathoo said:


It seems the original purchase price was subsidized by a government program (or possibly a subsidized loan program with below market rates and/or equity requirements). 
 

it would defeat the purpose of these programs if one were to qualify for this and then immediately flip it to a market rate buyer. 

 

Exactly. With the City of Houston First Time Homebuyer Assistance Program, you're required to live in the house for at least five years because the City of Houston is making an investment for someone to live in the home for the long term.

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Things he mentioned:

  • Land is paid on tax payer dollars and it is being justified as a grant, developer never paid for land
  • Developer took the land and passed on the covenants to the buyer. Owners paperwork says they can not rent/air bnb before 10 years, but no where in his documentation does it say you can’t sell/sell for a profit before 10 years (says if he knew, would’ve never purchased the home)
  • At the time of purchase, to qualify for house as a single individual, can’t be making more than $55,000k. Any new buyer must also fall under the same rules
  • He’s been there for three years, didn’t mention anything about first time home buyers assistance 

 

May just be me, but I feel like making them hold for 10 years is a bit excessive. He’s a young guy, a lot can happen in 10 years, sucks that he thought he was making a responsible financial investment. Instead, he may be walking away with nothing...

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1 hour ago, DJ Please said:

Things he mentioned:

  • Land is paid on tax payer dollars and it is being justified as a grant, developer never paid for land
  • Developer took the land and passed on the covenants to the buyer. Owners paperwork says they can not rent/air bnb before 10 years, but no where in his documentation does it say you can’t sell/sell for a profit before 10 years (says if he knew, would’ve never purchased the home)
  • At the time of purchase, to qualify for house as a single individual, can’t be making more than $55,000k. Any new buyer must also fall under the same rules
  • He’s been there for three years, didn’t mention anything about first time home buyers assistance 

 

May just be me, but I feel like making them hold for 10 years is a bit excessive. He’s a young guy, a lot can happen in 10 years, sucks that he thought he was making a responsible financial investment. Instead, he may be walking away with nothing...

 

I don't feel bad for him. He didn't have to do it.

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5 hours ago, DJ Please said:

Things he mentioned:

  • Land is paid on tax payer dollars and it is being justified as a grant, developer never paid for land
  • Developer took the land and passed on the covenants to the buyer. Owners paperwork says they can not rent/air bnb before 10 years, but no where in his documentation does it say you can’t sell/sell for a profit before 10 years (says if he knew, would’ve never purchased the home)
  • At the time of purchase, to qualify for house as a single individual, can’t be making more than $55,000k. Any new buyer must also fall under the same rules
  • He’s been there for three years, didn’t mention anything about first time home buyers assistance 

 

May just be me, but I feel like making them hold for 10 years is a bit excessive. He’s a young guy, a lot can happen in 10 years, sucks that he thought he was making a responsible financial investment. Instead, he may be walking away with nothing...

 

There seems to be something wrong with or missing from this story.  If there is nothing in the paperwork saying he can't sell for a profit before 10 years, then he can sell for a profit within ten years. 

 

Also, you've said he can't get his equity and you've said he can't sell for a profit. Those are two very different things.  Not sure of the exact program in this particular neighborhood, but typically such requirements come with down payment assistance.  If you don't stay for the full ten years, the homeowner typically has to pay back at least some of the down payment assistance.  They don't typically restrict the homeowner from selling or keep him from making a profit or getting his equity out of the house.

 

FWIW, the front page of the website for this development (Coleman Crossing) includes the following statement: 

  • Buyer must be a U.S. Citizen
  • Buyer must be a first time buyer or must not have owned a home in the past 3 years
  • Buyer must live in the home as his/her principal residence for at least 10 years after purchase

 

Meet the income guidelines established by HUD below: The combined household income must be at or below the incomes listed in the following chart based on household size:

 

  • Family of 1: $55,055
  • Family of 2: $62,920
  • Family of 3: $70,785
  • Family of 4: $78,650

 

Buyer will need to fill out this online form to start the process.

 

Not sure of the

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The buyers of those properties all had notice of the restrictions. They are part of the warranty deed document that has the buyer's signature on them. Same thing with teh deed restrictions, those are all signed by the buyers to acknowledge receipt of a copy. You can look at the documents on the County Clerk website.

 

Read all of the documents, people!

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2 hours ago, DJ Please said:

@Houston19514 The way it was phrased, he can take out whatever principal has been payed on the mortgage after selling, however can’t sell at market price and take equity gains after the three years he’s been there already. No loan assistance program was used

 

I suspect he doesn't completely understand it or something has gotten lost in the translation from him to you to us.  For starters, there has to be something in writing and on record.  If there is nothing to this effect on any of the documents, it would not be enforceable.

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21 hours ago, Houston19514 said:

 

I suspect he doesn't completely understand it or something has gotten lost in the translation from him to you to us.  For starters, there has to be something in writing and on record.  If there is nothing to this effect on any of the documents, it would not be enforceable.

When I was looking for a home back in 2017 I looked into this. I remember reading in the documentation that you couldn't sell the home at a market rate for 10 years. 

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