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Survey results related to single-family shared <br />equity programs: The Duty to Serve rule delineates <br />specific eligibility criteria forshared equity programs <br />associated with mortgage loans purchased by Fannie <br />Mae and forwhich itseeksto receive credit under <br />its Underserved Market Plan. The GSN study also <br />evaluated the compliance of shared equity programs <br />with those criteria to provide a better understanding of <br />programs that comply with the rule's requirements. <br />Legal mechanism to preserve affordability: One <br />of the eligibility criteria under the Duty to Serve rule <br />applying to the single-family segment is that some form <br />of legal agreement must be in place to establish price <br />restrictions that keep inclusionary units affordable to <br />income groups targeted by an IH program. The GSN <br />study finds that almost all IH programs, 98%, applying <br />to for -sale developments have an appropriate form of <br />legal agreement. <br />100% <br />80% <br />60% <br />40% <br />20% <br />Resale formulas: Another of the eligibility criteria is <br />that the legal agreement needs to have a resale formula <br />that limits homeowners' proceeds at resale. Overall, <br />93% of 511 programs report that resale formulas exist. <br />Review and pre -approval of refinances: A third <br />criterion requires clauses for review and pre -approval <br />of refinances and home equity lines of credit in <br />legal documents. Overall, 66% of 454 programs <br />that provided an answerto this question report the <br />existence of such clauses. However, for IH programs <br />located in states otherthan California, Massachusetts, <br />and New Jersey, 72% of programs did not have such a <br />requirement (Figure 8). In addition, such a requirement <br />is absent at the state level in New Jersey, and the study <br />did not find this requirement in any local IH ordinances. <br />In contrast, the majority of IH programs in California <br />(n =48, or86%) and all of the programs in Massachusetts <br />(owingto state mandates) have such a requirement. <br />All U.S., excluding California Massachusetts New Jersey <br />n=454 CA, MA, &NJ (n=56) (n=217) (n=52) <br />(n =129) <br />Figure 8. Share of IH programs that review and pre -approve any refinances/home equity lines <br />of credit (n = 454, or 69% of all for -sale programs) <br />is <br />40 Yes <br />No <br />0 <br />