Artist Equity & Security Initiative

Today, for most creatives, it is nearly impossible for someone to build enough equity on their own to purchase a home. This reality has shifted considerably from the baby-boomer generation who has wealth now in large part thanks to their affordable home purchase back when they were starting out.

Provincetown is seeing prices per square foot compete with and often exceed pricing in even the most exclusive urban neighborhoods of our nation.

What can we do? LOTS. But let’s start with this idea….

This will need to be flushed out some…..

The Stowaway Society would raise monies to purchase high-bedroom count properties that come to market, or utilize properties that are bequeathed to the organization for the purposes of not only providing affordable housing but creating equity while living in the property and maintaining the property. Eligible occupants would be required to partake in a cooperative living environment, whereby each would pay their rent like a mortgage for some portion of a designated property. If a 5-bed property becomes available and an occupant occupies one bed they would be responsible at-most for 1/5 of the mortgage, a reasonable HOA fee (covering utilities, taxes and maintenance), and a payment to their Downpayment Fund. Remember now that they already got this for free. This would be them slowing paying it back over time.

At some point down the road, occupants may resell their 1/5 stake in the subject property within the State’s recommended affordable inflation rate measured on an annual basis, or by some reasonable metric, back to the non-profit and recoup their Downpayment Fund back as equity earned to be used for their next endeavor, or to pay off debt, or build a business. It would be a start. Occupants would be incentivized to stay in the property longterm because of their low rent and because they know the longer they stay in the more equity they are building. This would correlate to community investment.

Many scenarios work but not all. I see a concept where the non-profit/trust views all properties in its portfolio and ultimately its occupants as the same, but that would take time to build. At the start not every occupant would quality for every property. I see bequeathed properties lowering expenses across the board for all down the road. Maybe the Town’s Affordable Housing Fund could cover the property taxes and utilities on these “Trust” homes.

The metrics all start with the first property considered. The non-profit would create a matrices where by each potential purchased property could be evaluated based on condition, debt-service, occupants served, etc. Obviously, the more money the Fund has upfront the better the program can serve the people who need a head start.

I need someone to really sit down with me and punch numbers and think through concepts. There is something here….