What is ‘limited-equity homeownership’?

On the private market, you can buy a home for a certain price and sell it later for
however much someone is willing to pay.

Affordable homeownership is different because it would not exist without major investments
from our local and state governments. The buyer agrees that, if and when they sell it,
the unit will remain affordable to the next buyer. 

Limited-equity ownership still brings tremendous benefits. You buy at below-market rates and
don't pay rent to a landlord, while maintaining predictable housing costs. You do build equity,
usually 5% annually, plus the value of any improvements, when approved by the monitoring agency. 

An eligible buyer who purchases an affordable home for $240,000, for example,
could build approximately $60,000 of equity over six years, without improvements.