Access to the equity and wealth accumulated in affordable dwelling units is becoming increasingly difficult for their residents. In today’s Capitalistic society there are only a handful of things that can appreciate in value as time goes on, three to be exact. Precious metals, Homes, and Bonds are the three constants that don’t immediately drop in value the moment they are purchased. This is why allowing individuals to purchase homes for affordable prices, but restricting them from accessing the greatest benefit of their endeavor does not equate to sustainable development in underserved communities.
Allowing individuals to move into affordable priced housing, without the access to equity within a reasonable time frame does not contribute to affordable housing or the generating of wealth. Historically, minorities have been excluded from some of the most robust wealth generating opportunities through homeownership this country has ever seen. With the rising cost of living (Higher Education, Medical Expenses, Maintenance, and etc……) affordable dwellers could be faced with unforeseen or unexpected financial obligations that could exceed their limitations, and without the access to the wealth of their home they won’t be able to move up the socio-economic ladder.
The last of the items that appreciates as time goes on are bonds and investments. Bonds, which are debt securities under which the issuer of the bond owes the holder of the debt interest, as well as the principal amount once the bond reaches its maturity date. Allowing low-income individuals to buy homes without the access to the wealth it generates, can be paralleled to an individual purchasing a bond, but not being able to access any of the interest it generates. This simply makes no sense. Home owners need to be able to access the equity that accumulates in their home. Generated wealth needs to be made accessible to help bridge a widening wealth gap. Manna supports a Recapture and Recycle model that recaptures all funds that are considered “subsidy” to the buyer, and places in back into the pool of funds used to produce these affordable dwelling units. Rather than permanent or long-term resale restriction, Manna advocates and employs at most a 5-10 year resale restriction. This is especially important for homeowners in distressed areas.