eli5: How can they create affordable housing that stays affordable

Question

So a developer working with the government and getting incentives builds a nice neighborhood of homes that people can afford. People in the target income group buy the houses. All good. But when housing prices spike, what keeps the houses in the hands of the targeted economic group. When owner goes to sell, won’t the market dictate what happens, opening up the neighborhood to what has been referred to as gentrification?

In: Other

Answer 1

Deed. The affordable house has written into its deed that it must never be sold for more than 80% of fair market value. Ever, no matter how many times it’s sold.

Simple as that.

Source: have built houses.