A homeownership lottery now open on Cape Cod could give owners an extraordinary boost in their home equity if they stay in the home at least 15 years.
The Cape-based nonprofit group Housing Assistance has built 50 condominiums in Hyannis, of which 46 will be sold below market value to middle-income buyers.
What is unique is that after 15 years, the deed restriction that prevents owners from selling their units at market value expires, or “burns off,” as CEO Alisa Magnotta puts it.
“The burning-off of the deed restriction is pretty incredible,” she said. “And for families that have no other way of getting into homeownership and into generational wealth, or wealth building through property, this is, like, really an amazing opportunity for our region.”
Owners who sell after 15 years share the extra market-value profit with MassHousing, which provided funding through a program called CommonWealth Builder.
Even better for owners: If they stay 30 years before they sell, they keep the full market value.
“This product, in our market and in the state, is really special,” Magnotta said. “And this is the first offering on the Cape.”
The Cornerstone Hyannis condos are also the first homes built under a Housing Assistance initiative called Cornerstone Homes Cape Cod, designed to create attainable homes for middle-income buyers.
“Attainable” housing aims to help households that earn too much to qualify for traditional affordable housing but not enough to afford a home, especially in a high-priced market such as Cape Cod.
Household income limits for the mix of one-, two-, and three-bedroom condos range from $98,900 to $196,600, depending on the number of people in the household. Asset limits also apply.
Magnotta said she wants to spread the word about the lottery, especially to local employers and people who commute over the Bourne or Sagamore bridges to jobs in Hyannis.
For commuters who have not been able to find a home on Cape Cod, “You can be home now,” she said. “You can have long-term, stable housing where you're earning equity over time. And it's just a fabulous gift that we were able to put this together with so many different generous people.”
The condos are located at 268 Stevens St. in Hyannis, within walking distance to Main Street.
Prices range from $282,800 to $421,550, based on the buyer’s income level, household size, and eligibility. Buyers must use the home as their primary residence, and with some exceptions, they must be first-time home buyers.
The deadline to apply for the lottery is Jan. 2, and Housing Assistance is holding online information sessions in advance.
