Tenants To HomeOwners (TTH, Inc.) is a private, nonprofit 5O1(c)(3) corporation based in Lawrence, KS.
They renovate and construct houses for rental or ownership for a low to moderate income clientele. They get their funding from various sources, one of which is the City of Lawrence.
Unfortunately they have re-invented the "Trailer Park" business model and cleverly market their Products under the phrase "Affordable Housing". It's certainly a phrase you can't argue with, who doesn't support "Affordable Housing"?
One of the strong arguments for promoting "Affordable Housing" is to move low income people out of high cost rental situations to more affordable housing with the promise of home ownership and over time, an equity gain.
However the TTH, Inc. Product offers little benefit for all parties in the "Affordable Housing" cause.
Good for the Tenant?:
Good for the Neighborhood?:
- The Tenant can only buy a TTH. Inc. house at a price that is set by TTH. Inc. The buy price is not set by the open market.
- The Tenant can only buy the house and cannot own the land underneath.
- The Tenant pays rent to TTH. Inc. for the land underneath the house.
- The Tenant can only sell their house back to TTH. Inc. at a price set by TTH. Inc. The sell price is not set by the open market, and if there is an equity profit (difference between the buy and the sell price), TTH. Inc. keeps 75% and the Tenant gets 25%.
- TTH. Inc. all the land it owns are assets of the corporation and cannot return to the open market. The land will never change hands, what's there remains permanently.
- Neighboring property valuations theoretically will not be affected by the artificially maintained TTH. Inc. property valuations.