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Committee hears split on raising allowable homeownership payment to 38% of income
Summary
Supporters said raising the pricing formula for deed-restricted for-sale homes to up to 38% of household income would stretch scarce subsidies and produce moderately priced ownership opportunities; opponents warned it risks making deed-restricted units unaffordable and increase foreclosures.
Lede: The committee on April 2 heard extended testimony for House Bill 5956, a proposal to change the methodology used to price deed-restricted affordable homeownership units from a 30% of household income cap to a permissive maximum of 38% of household income.
Nut graf: The bill’s sponsors and housing developers argued the change is modest, aligns pricing with conventional mortgage underwriting (which routinely allows 36–42% front-end ratios), and would allow more moderately priced homeownership units to be produced with the same public subsidy. Nonprofit homebuilders and tenant advocates warned that raising the formula would make deed-restricted units unaffordable for the lower-income households the current program targets,…
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