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GDoN “Income limits apply” edition

by Prince Of Petworth February 2, 2017 at 12:00 pm 19 Comments

1415 Girard St NW #401

This unit is located at 1415 Girard Street, NW. The MRIS listing says:

“Amazing opportunity! Perfect location in Columbia Heights! Metro two blocks! JUST renovated one bedroom PLUS DEN! Granite, stainless steel appl, beautiful dark hardwood floor! Private storage unit. This is a City First Home–you receive a grant to purchase of $66,700, so true price is $320,000, but payments are for a $253,300 price! Income limits apply 1 per: $91,224. 2 per: $104,256. OH 2/5,1-3!”

gdon

You can see more photos here.

This 1 bed/1 bath is going for $253,300 ($429 monthly fee.)

  • Nate

    Why in the world are there three doors to the bedroom from the same hallway…? Otherwise it looks like a steal.

    • JS

      Here’s my guess: the barn door was added for “on-trendiness”, obviating the need for original swinging entry door. The 2nd swinging door probably lead to a hallway closet, was was removed in order to make the bedroom larger.

    • AnonPetworth

      It’s only 2 from bedroom into hallway. Going down the wall from LR to end of the hall, you have hallway/bathroom door (photo 11), hallway/bedroom normal door (photo 4/11), hallway/bedroom barn door (photo 4/11/12), bedroom/closet door (photo 12).

  • loslobos

    Could I buy this for my in-laws?

  • Anon

    Uh, this seems too good to be true. What’s the catch? I’d totally buy this just to rent it out. (Though I’m guessing that’s the catch.)

    • JS

      It’s income-restricted, and I’d bet there are limits on resale prices. The income limits are pretty high, but you’re forfeiting the chance to build equity through price appreciation.

      • Ben

        I believe you are only allowed to keep 25% of the appreciation. That and you can only sell to another income restricted buyer. Only so much appreciation an income restricted place can have….

        • Anon Spock

          This setup is a little different. Income limits will still apply, but the share is limited equity, so you’ll get whatever % that’s capped*number of years you’ve lived there when you sell.
          What you’re thinking of is called inclusionary zoning, I believe.

          • Ben

            I stand corrected – it seems the terms have changed slightly since I looked into them a long time back. During resale – you can sell to anyone after 90 days (City First has first refusal rights and uses the 90 days to find a income restricted tenant). During those 90 days you are required to sell it for what City First thinks it should be sold at. You also sign a Unit Housing Covenant when purchasing which requires you to ” share the appreciation” (regardless of method of selling). In addition there are restrictions on renting the unit (e.g., when unoccupied).

    • Anon Spock

      You usually can’t rent these places out otherwise anyone who could afford it would just buy and hold.

    • Ava16

      From my understanding, the grant is essentially a down payment that you have to pay back, plus any price appreciation (thats how CFH makes money) on the resale. So you don’t make any money off the resale, you just get to place your housing payment into equity that you take out in the end instead of throwing it down the black hole of rent. (Please clarify or correct me if I’m wrong, all of this can be pretty nuanced).

      • Ben

        I think you can keep 25% of the appreciation (rest goes back to the program). Also probably restricted to reselling to another income restricted buyer….

  • Zora

    So you can make $90k per year and get a $66k grant to buy this place?

    • Anon Spock

      The first time homebuyer programs go up to about a 120k income limit. We have a high median income here, so limits seem high.

  • OiWithThePoodles

    This is going to make me sound like a dunce, but is the income limit an upper limit or a minimum? I doubt I could afford this anyway, but I’ve always liked that building and the photos are beautiful.

    • Anon Spock

      Upper limit. For these setups, it’s always an upper limit.

      • AnonPetworth

        Sometimes they will post both an upper limit (to make sure it goes to someone who can’t afford market rate) and an lower limit (to not let people buy into a “burdened” housing situation). Both are determined as %AMI and usually the minimum comes into play when you’re looking at units closer to 50-70% AMI. The cap for this particular unit is 120% AMI.

        • Anon Spock

          Should have said when it’s unlabeled as upper or lower, it’s an upper limit. I’ve always seen minimums listed as such. (Correct me if you’ve seen different)

  • CLS

    It says there’s a den but um….where’s the den?

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