The following restrictions apply to owners of workforce housing units:
- No owner shall refinance or encumber the unit with any other mortgage loan, home equity loan, or other debt instrument without prior written approval from the Director of the Department of Housing and Neighborhood Preservation;
- In no case shall the owner be allowed to pay off the second mortgage issued by the city until he or she resells the unit;
- In no circumstance may the owner refinance his or her workforce housing unit with a loan that has a total loan-to-value ratio greater than the owner’s proportional share of the initial purchase price; and
- The workforce housing deed of trust shall not be subordinated to any other mortgage or encumbrance except a valid purchase money first deed of trust.
To see an example of how to calculate the amount of equity available when refinancing, click here