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In an effort to address the lack of housing availability for the Truckee workforce, the Town of Truckee rolled out an innovative housing assistance program. Beginning in mid November, 2022, the Truckee Home Access Program (THAP,) began providing incentives for buyers and sellers.
THAP was developed to help generate a pool of homes that will be reserved for the full-time workforce in the Truckee region. Funded by Measure K, a Transient Occupancy Tax, THAP pays buyers, sellers, businesses, and developers by utilizing a 55 year deed restriction.
A THAP unit is a housing unit that is deed restricted so that it can only be used as a fulltime residence. It must be purchased by or rented to a household that meets the THAP program’s regional employment and income qualification requirements.
The high cost of housing in Truckee, along with the fact that 50% of homes are used as second homes, has made access to housing challenging for local workers. It offers a pathway to home ownership, while also expanding to include a higher area median income limit.
The goal of this program is to create a more balanced and supportive environment so local employees can either rent or own their home, utilizing both new and existing housing stock.
THAP Benefits
THAP works in several ways:
Buyers can apply for compensation up to $150,000 for a maximum $937,500 home purchase price. Payment can be used for down payment assistance, renovations, or other expenses.
Sellers can sell at a reduced price and apply for compensation to make up the difference between the reduced price and the appraised value.
Local Businesses can apply for compensation to rent or sell homes to local workers, including their own.
Developers can apply for compensation to build homes for sale or rent to local workers.
Deed Restriction
A deed restriction is a binding agreement that places permanent restrictions on the property. In the case of this program, the deed restriction will restrict the unit to use as a full-time residence, with occupants required to meet income and employment qualifications.
The amount paid for each deed restriction will not exceed the lesser of 16% of the appraisal value of a home or $150,000.
The deed restriction will remain with the property if the property sells within the 55 year deed restriction term. The terms the property is restricted by will reset for 55 years for the next owner.
Qualifications
To qualify for THAP, a household must have at least one member who is currently employed 30 or more hours per week. They must meet full-time employment equivalency with employer verification. They can also apply if they have a written offer for full-time employment. This employment site must reside within the Tahoe Truckee Unified School District.
A home buyer can participate in the program if they plan to purchase a home valued at no more than $937,500 and they meet the following requirements:
Buyers must work full-time in the region, and not earn more than the program’s maximum income limits ($241,080 for a household of 4.) They must agree to sell to another THAP qualified buyer at resale. Buyers can use the financial assistance for a down payment, home renovations, or other expenses
The buyer must plan to use the home as a fulltime residence. Their liquid assets cannot exceed 30% of the value of the purchased home.
Sellers can sell at a reduced price and apply for funding to make up the difference between the reduced price and the appraised value.
This program is a great way for homeowners and would-be buyers to help ensure the area retains access to the best services. Public servants, healthcare workers, teachers and even those who work in the tourism industry or local restaurants need housing.
This is the first program of its kind to address the rising cost of homeownership in a resort destination. The funding is expected to go fast so do not hesitate if you’re thinking of buying and selling!
Contact me today if you have any questions or would like to get started with the program.
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