Deed-restricted housing growing in other states
SAN JOSE, Calif. – July 17, 2014 – As the wave of U.S. baby boomers reaches retirement, age-restricted or deed-restricted housing communities increase in popularity. The form of homeownership has been popular for several decades in established retirement markets like Florida and Arizona, but now it's popping up in such non-traditional locales as the Pittsburgh area.
Deed-restricted communities use governing documents created by the developers to outline what is and is not allowed. By buying a home in one of these communities, all buyers – both current and future – agree to abide by those documents.
While the actual rules vary by neighborhood, deed-restricted communities often restrict an owner's ability to paint, renovate or alter the exterior and/or interior of a residence. In addition, they can limit the number of vehicles on site by requiring all cars and trucks to be parked inside of a garage.
The rules are contractual agreements. Residents who break them can be punished by the homeowners association in the form of fines and even liens against the home.
According to the Foundation for Community Association Research, approximately 65 million Americans now live under rules overseen by 330,000 U.S. condominiums and homeowners associations; a decade ago, it was only 51.8 million.
Foundation spokesman Frank Rathbun says one reason many northern cities have been late to the trend is that the growth of such communities began in the 1970s and '80s in states that were gaining population at that time. In direct contrast to California and Florida, northern communities like Pittsburgh were losing population. Consequently, there was not as much new home growth.
Source: San Jose Mercury News (7/4/14)© Copyright 2014 INFORMATION, INC. Bethesda, MD (301) 215-4688