A collaboration between the Larimer County Assessor and Habitat for Humanity could help increase housing affordability.
Larimer County Assessor Bob Overbeck is working with Habitat for Humanity [H2H] and is eager to use a tool known as a Long-Term Affordability covenant for their homes, that can be placed on new and renovated homes to slow down the appreciation of sale prices of those properties.
The maximum the property can appreciate would be slowed to 2% per year with the covenant instead of at a market rate. The tool sets a lowered valuation for the property which also lowers the taxes, too.
The covenant also stipulates income eligibility, owner-occupancy, and the right for H2H to repurchase the property all of which come under a 90-year renewable term.
Because of the lower prices from the restrictions, low to moderate-income families may be able to afford a home. Those families that buy these homes also realize if they choose to sell later, they will also get a lower sale price stipulated by the covenant.