The National League of Cities (NLC) has partnered with Grounded Solutions Network to deliver guidance to local governments on shared equity homeownership models that will serve their communities for generations to come.
“Shared equity homeownership” encompasses a variety of approaches to providing affordable homeownership opportunities, including:
Embedded in each of these models is a commitment to making homeownership affordable to low- and moderate-income households and maintaining the affordability of that housing in perpetuity.
Interested cities, towns and villages can now receive direct assistance and support in implementing a shared equity homeownership model, or in assessing if it is the right fit for local housing needs.
How Does Shared Equity Homeownership Work?
Shared equity homeownership models ensure lasting affordability by using subsidy dollars to lower the
initial cost of a home to an affordable price, and by restricting the price for which it may be sold to keep
it affordable for subsequent lower-income families who purchase the home, sale after sale. The model
balances wealth-building for families, who would otherwise be unable to afford owning a
home, while preserving the community’s investment.
Shared equity housing can be an effective way to stretch cities’ limited affordable housing dollars. Too
often cities subsidize housing to make it affordable, only to have the affordability restrictions expire a
few years later. Cities are then faced with the task of replacing the affordable housing they have lost,
usually at a higher cost. Shared equity homeownership programs allow cities to retain affordable
housing in their communities. With a one-time subsidy, cities are able to effectively create a community
asset that will serve multiple lower-income households for decades to come. Moreover, cities help each
household access homeownership and build wealth, sale after sale. It is a real win-win for cities and
their residents.
About the NLC Member Help Desk on Shared Equity Homeownership
- Curious about whether a shared equity homeownership model might be right for your city?
- Interested in learning more about effective implementation practices given your local context?
- Hoping to explore how to embed racial equity in your housing strategy through shared equity
- homeownership?
- Want to be connected to a peer city following a similar shared equity model?
All NLC members are eligible to submit questions about shared equity homeownership directly to the
experts at Grounded Solutions Network.
Request a Lasting Affordability Policy Audit
With generous support from Citi Community Investing and Development, a limited number of
cities will also receive a Lasting Affordability Policy Audit conducted by the Grounded Solutions
Network.
Intended for those cities actively looking to strengthen municipal support for shared equity
homeownership at the local level, this audit will include a deep dive into city policies and
practices with the aim of providing tailored recommendations for improvement. Where
appropriate, the audit will also highlight opportunities to advance racial equity in the design and
administration of these policies.
Areas subject to review through the Lasting Affordability Policy Audit include:
- Land disposition policies and practices
- Funding and financing policies and practices
- Development incentives and requirements
- Property taxation practices
- Cross-program coordination
Eligibility and Expectations
Priority for Lasting Affordability Policy Audits will be given to cities with populations of at least 40 percent people of color and a demonstrated commitment to advancing racial equity through housing policy. The audits should take 4-6 weeks to complete and may require 2-3 hours of municipal staff time to help identify relevant municipal policies and practices and answer Grounded Solutions Network staff questions. Participating jurisdictions will receive a written report and (optional) online presentation of the audit’s findings.
Submit questions about shared equity homeownership or request a Lasting Affordability Policy Audit
for your city through the Help Desk on Shared Equity Homeownership.
About Grounded Solutions Network
Grounded Solutions Network is a national nonprofit formed by the merger of the National Community
Land Trust Network and Cornerstone Partnership. It is dedicated to shaping communities to be inclusive
and filled with opportunity for all. Where we live matters. It determines what opportunities we have and
how our kids grow up. Everyone should be able to live in a place that offers opportunity: access to jobs,
parks, public transit, quality schools and stable homes. Strong and inclusive communities provide the
foundation that people and families need to thrive. Grounded Solutions Network promotes homes that
remain affordable for generations and enable our communities to be stable and strong, for good.
Grounded Solutions Network knows what policies and strategies work, and helps communities use
them. The Network works nationally, supporting nonprofit and government practitioners, advocates,
elected officials and other housing professionals with the knowledge and support they need.
For general questions about Help Desk on Shared Equity Homeownership, please contact
housing@nlc.org.
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