AFFORDABLE HOME RESTRICTIONS
You have shown an interest in purchasing a home designated as Affordable. The purchase price is substantial less than the home’s fair market value. The home was constructed under a state subsidy program that requires this home be sold to a purchaser who meets certain income, asset and, in some cases, age limitations (an “Eligible Purchaser”)
In exchange for the opportunity to purchase the home at less than its fair market value, you must agree to certain use and transfer restrictions. As the Owner of a 40B unit, you should be aware that there are three (3) legal documents that have been recorded on your property to ensure that your unit remains affordable in perpetuity. They are;
- The 40B Regulatory Agreement.
- The Affordable Housing Restriction (also known as the deed rider).
- The 40B Affordable Housing Restriction Mortgage, in which MassHousing is Mortgagee.
It is important to recognize the MassHousing Mortgage does not mean that you have a loan with or owe money to MassHousing. Rather. This Mortgage reinforces the terms of the Affordability Restrictions and was instituted as a deliberate mechanism to alert financial institutions of the unit’s value under the 40 B program.
The documents, collectively, authorize your Monitoring Agent and MassHousing to enforce the 40B Affordability Requirements and ensure that annual compliance is carried out.
These restrictions are described in detail in an Affordable Housing Restriction that will be attached to the deed to your home (the “Restriction”). Also known as (the “Deed Rider”)
You may also want to review the “Homebuyer Disclosure Statement” on our web site under “Documents”