Bill
LD 1901
Overview: LD 1901, "An Act To Regulate Shared Appreciation Agreements Relating To Residential Property", was introduced on May 1, 2025. The bill's status is that it has been approv
Overview: LD 1901, "An Act To Regulate Shared Appreciation Agreements Relating To Residential Property", was introduced on May 1, 2025. The bill's status is that it has been approved for carry over to the next legislative session.
Purpose and Intent: The main goal of this bill is to regulate the use of shared appreciation agreements (SAAs) in residential property transactions. SAAs are financial arrangements where a homebuyer receives down payment assistance in exchange for a share of the future appreciation of the home's value.
Key Provisions:
- Requires lenders offering SAAs to disclose all terms and conditions to borrowers in a clear and conspicuous manner.
- Establishes a maximum share of appreciation that can be claimed by the lender, set at 25% of the home's future value increase.
- Prohibits the use of SAAs in certain types of residential properties, such as low-income or affordable housing.
- Provides borrowers with the right to refinance or sell their home without the lender's approval, subject to the terms of the SAA.
Affected Parties and Impacts: This bill would primarily impact homebuyers who utilize SAAs, as well as the lenders and financial institutions that offer these agreements. It aims to provide more transparency and consumer protections for borrowers entering into SAAs.
Procedural and Timeline Considerations: The bill has been approved for carry over to the next legislative session, meaning it will continue to be considered in the next round of legislative activity. This allows for further discussion, potential amendments, and eventual voting on the bill.
Compiled from official sources — confirm details with the bill’s official record.
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