Voluntary housing deed restrictions

Can deed restricts work to ease the housing crisis?

What is a deed restriction? When buying a home there are always some conditions that are specific to that piece of real estate. 

For example, if the home is in a neighborhood or development with a Home Owners Association (HOA) the home is automatically a member of the HOA. The owner, upon purchase, is provided with copies of the Conditions, Covenants and Restrictions (CC&Rs) if they are attached to the property. These documents describe the rules the owner must follow that describe the use of the property, including deed restrictions. The rules, which are enforced by law, may include rental restrictions on portions or all of the home, residential age restrictions, (common in “active adult” developments) landscaping choices, as well as exterior paint colors, to name a few.

Easements, such as neighbor access, utilities or views, are part of title insurance documents that show anything of record that is a “detriment” to the property and gives the buyer a snapshot of the condition of the property they are purchasing.

In some ways a deed restriction can be somewhat self-enforcing. For example, if a deed restriction requires the property to be owner-occupied by CC&Rs or other governing documents, they are disclosed to the purchaser as an “exception” to their title insurance coverage.

The buyer couldn’t claim they were unaware, or didn’t accept the terms of the purchase. The governing HOA or any interested landowner within the same subdivision enforces the CCRs. The likelihood of an owner having their violation be settled in court for not abiding by restrictions creates a natural deterrent.

The key to incorporating a deed restriction on a new or resold property is that the agreement is voluntary and enforceable and a known factor for both buyer and seller. 

As a solution to providing and retaining local worker housing, negotiating a deed restriction on parcels within a new development can help achieve that goal for the community. This is happening across the country, as well as Kootenai County. Allowing certain uses that assure dwelling units are more accessible can be included in new developments with a Development Agreement with a city or county government, or by a vote of residents in an existing HOA. 

The aspects of these agreements will be explored in a future column. Deed restrictions here can be managed by a number of organizations, including Panhandle Affordable Housing Alliance and Habitat for Humanity locally. Updates regarding use of Deed restrictions are at Housingni.org.