| There are over 1350 residential properties
in Fairfax County which are covered by covenants or deed restrictions
that place limits on the price for which the current owner can
resell the property. These include Affordable Dwelling Units (ADU),
Moderate Income Direct Sales units, Founders Ridge, and Windsor
Mews and First-Time Homebuyers Direct Sales units. The control
period varies between 15 and 50 years, depending on the property
involved. The most common control period is 15 years.
All price control documents are recorded in the land records
of Fairfax County. Properties in the ADU, Founders Ridge, Windsor
Mews and First Time Homebuyers Direct Sales programs have Covenants
recorded in the land records which describe resale and refinance
restrictions. Properties in the MIDS programs have deeds which
describe the FCRHA’s right to repurchase the unit at the
controlled price. While many deeds reference covenants, only
a full title search will make sure all information on restrictions
are found. You may confirm if a property is price controlled
by calling the First-Time Homebuyers Program at (703) 246-5087
Mon-Fri between 1pm and 4pm.
All resale prices are set at the original purchase price from
the builder plus annual increases in the Consumer Price Index
for the Washington Metropolitan area. For ADU’s, MIDS,
Founder Ridge, Windsor Mews and First Time Homebuyers Direct
Sales units, the purchase price can be increased by the documented
costs of permanent improvements such as added bathrooms, finished
basements, decks and fences. For MIDS properties, the rate of
inflation is capped at 5% and the price increase for permanent
improvements is capped at $3,500.00.
Yes, several programs have significant restrictions on financing.
For First Time Homebuyers Direct Sales units and ADU units sold
or resold after July 1, 2002, any financing above the resale
price is deemed unsecured. For MIDS properties, the right of
repurchase at the control price remains in effect even if the
property is encumbered with liens. For Founders Ridge Units,
any refinancing above the existing balance of the first trust
loan is deemed unsecured. Documentation regarding some of these
restrictions is available on the Fairfax County Web site www.fairfaxcounty.gov/rha/fthbadu.htm.
NO! A property is worth what a willing seller can sell to a
willing buyer for. Because price controlled properties cannot
be legally sold outside the First-Time Homebuyers Program, the
value is the calculated resale price. This is true even if the
owner is refinancing under the resale limit but seeking a higher
value to avoid private mortgage insurance costs.
The Fairfax County Department of Tax Administration beginning
in April 2004 will group price controlled properties on its
webpage http://icare.fairfaxcounty.gov
When the webs site appears, click on the underlined word address.
After entering the property number and street name (do not enter
words like “street,” “lane” or “road”.
Click on the search button. When the property list appears,
click on the address you are searching for. The gray background
will turn yellow. This will bring up the property profile. Click
the view property neighborhood sales button (it looks like a
small house). For price controlled properties, clicking on this
link will display other price controlled properties, including
addresses, dates and sales prices. The information can be verified
on the tax website.
For ADU’s, Founder Ridge, Windsor Mews and First Time
Homebuyers Direct Sales units, the owner at the expiration of
the control period must give 50% of the difference between the
control price and the first market rate sales price to the Fairfax
County Housing Trust Fund. This is required regardless of the
financing on the property.
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