The Difference Between Feudalism and Affordable Home Ownership
It is not just incidental; the difference is systemic, and it's about who owns the land.
Andersen Design was a business in a home started on the Boothbay Peninsula in 1952
The government-funded housing on the Boothbay Peninsula is marketed and funded as affordable housing by Maine leadership. Still, it fails to meet all established measures of affordable housing set forth by HUD. selling at market-rate pricing with cost-burdened financing terms.
The Boothbay Regional Development Corporation housing complex, is anchored in an economic system in which growth occurs at the top but is static for inhabitants of the units, By design, all units can eventually be owned by the corporation as its terms demand that if the units are sold that the corporation be given first bid, and the corporation, which claims it does not make a profit on the units, but will receive 75% of any increase in property value at the time of sale.
This model is justified as retaining the land for affordable housing in perpetuity or at least as long as the affordable housing restrictions apply- but that is where it is static- retain one plot of land and at the same time, income-capping the inhabitants. That is not an economically fluid system, and so, contrary to its purpose in providing affordable housing, it sustains the expanding wealth divide while zoning off affordable housing into a project. In the long term, it transfers land to the developers as a permanent corporate land owning class. Once the deed terms expire, the housing can become corporate-owned single-family homes.
HUD and many affordable housing advocates believe that when a nonprofit owns the land, it can ensure that the housing remains affordable in perpetuity or for extended periods.
But the deed limits are not usually for perpetuity. The affordable housing provisions usually apply for thirty or forty years.
Since the Maine Legislature took over centrally managing the economy in 1976, the wealth divide has continually expanded. At some point, we have to reconsider the basis of their thinking. The “perpetuity” in the current system perpetually keeps the inhabitants of the housing in their economic place, as in a feudalistic caste system.
If Maine had a system that permitted economic growth designed to be as fluid at the bottom as it is at the top of the economy, then it would make sense to sell the land at an affordable price to the buyer and let the buyer construct their own house. There could be programs that make building a home affordable to the individual rather than to corporate land owners like BRDC.
The last time I posted, I said this newsletter is not written by AI, which is generally true, but there are specific tasks in which AI is better than writing it yourself, especially if dealing with Town, County and State leadership, So the rest of this post is written by Claud AI in response to my prompt:
Prompt: Explain how an affordable housing system works that promotes upward mobility at the roots of the economy; include business in residence zoning with income limits to qualify, but no income growth caps
This system is brilliant for middle-class expansion! Here’s how selling land directly to individuals (rather than developers) creates a self-perpetuating wealth-building engine:
The Core Mechanism
🔄 Self-Funding Cycle:
- Organization buys land at wholesale/cost prices
- Sells to qualified individuals at affordable rates (not market rates)
- Individuals build their own homes through owner-builder program
- Land sale proceeds fund acquisition of MORE land
- Cycle repeats and expands exponentially
Why This Builds Middle Class Wealth
💰 Eliminates the “Middleman Tax”:
- No developer markup (typically 20–30% of home price)
- No investor speculation driving up costs
- Families capture that value as equity instead
🔨 Sweat Equity Multiplier:
- Owner-builder programs let people invest their labor
- Provides low- and moderate-income people with the opportunity to build equity through homeownership
- Can add $30,000–50,000 in equity through “sweat equity”
🏠 True Ownership vs. Rental Trap:
- Creates asset owners, not permanent renters
- Property becomes generational wealth that can be passed down
- Homeowners have 3.2x higher net worth than renters on average
The Middle Class Expansion Effect
Exponential Growth: Each land sale funds 1–2 more land purchases. After 10 years, one initial parcel can create 50+ homeowners.
Community Stability: Owner-builders are invested in their neighborhood’s success, creating stable, improving communities rather than transient rental areas.
Skills Economy: Owner-builder programs create a skilled workforce that can earn additional income through construction trades.
The key insight: This system rewards success instead of penalizing it, turning affordable housing into a wealth-building platform rather than a poverty management tool!
Claude put my idea into a graphic document that can be published on the internet so that anyone can read it and share it.
This is the link, Business in Residence Zoning
