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APHA board proposes switching unit appreciation to a flat 3%
Summary
The APHA board proposed amending ownership and rental appreciation calculations from a CPI-linked formula to a flat 3% simple appreciation to give homeowners predictability; staff said the change would be proactive and not retroactive for most deed restrictions.
An APHA board representative briefed council on proposals to change unit-appreciation calculations for APHA ownership and rental units. Staff recommended moving from a formula of "3% or CPI, whichever is lower" to a flat 3% simple appreciation for calculating maximum sales price and rental increases. The board said that switch would align APHA practice with some neighboring housing programs and give homeowners a predictable appreciation rate.
The board presented unit-level counts showing how a flat 3% would affect five-year max-sales-price calculations for different deed-restriction categories and said the change would be applied prospectively (not retroactively) unless a deed restriction explicitly allows amendment. Council members debated trade-offs: predictability for owners versus the risk that 3% would lag CPI in high-inflation years. One council member suggested reviewing whether a CPI-or-fixed hybrid might be preferable; board staff said the proposed change was intended to simplify administration and make future value easier for owners to plan around.
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