Appendix D Housing-Justice Model and Research Boundaries
This appendix standardizes the English variables and makes the legal, accounting, and research boundaries explicit.
D.1 Standardized English Variables
Section titled “D.1 Standardized English Variables”Notation standard
| Standardized variable | Definition |
|---|---|
| Total Payment(t) | The resident’s total periodic payment at time point t. |
| Housing Use Fee(t) | Payment for occupancy, maintenance, management, capital services, and renewal preparation already provided in period t. |
| Home-Purchase Contribution(t) | Resident contribution in period t that enters a segregated account and vests toward future purchase. |
| Purchase Option Premium(t) | Price in period t of retaining the right—but not the duty—to buy later under the published formula. |
| Cumulative Vested Equity(t) | Total resident equity vested by time point t after disclosed reasonable fees. |
| Formula Purchase Price(t) | Purchase price at time point t calculated under the published dual-anchor formula. |
| Cost-Anchor Value(t) | Cost-based reference value reflecting replacement cost, improvements, depreciation, and remaining term. |
| Comparable Remaining-Term Fair Value(t) | Fair reference value of rights with the same location, quality, restrictions, and remaining term. |
| Public Adjustment(t) | Published adjustment for services, quality, shared facilities, or other verifiable factors. |
| Remaining Purchase Payment(t) | Amount still payable at time point t to acquire the current plan’s fuller remaining-term rights. |
| Portable Exit Equity(t) | Vested equity available for refund or cross-scheme transfer upon exit. |
| Alternative Housing Fair Value(t) | Fair value at time point t of a comparable alternative housing right. |
| Relocation and Switching Cost(t) | Financial and practical cost of moving and transitioning at time point t. |
| Housing Fit Value(t) | Household-specific value or cost associated with commute, school, care, relationships, accessibility, and life stage. |
| Fair Repurchase Price(t) | Formula-based price at time point t for priority repurchase by the trusteeship institution. |
| Operating Income(t) | Recognized provider income in period t after excluding resident-owned contributions. |
| Operating Surplus(t) | Operating Income(t) minus Total Cost(t) in period t. |
| Option Liability(t) | Estimated obligation or reserve at time point t arising from outstanding resident purchase options. |
| Project Value(0) | Present value at inception of future operating surpluses and finite end-of-term residual rights, less initial invested capital. |
| Recognized Option Income(t) | Purchase-option income earned and recognizable at time t as the option service and related obligations progress. |
| Allowed Return(t) | Approved limited return reflecting invested capital, risk, term, public support, and mission obligations. |
| Total Cost(t) | All operating, maintenance, financing, reserve, and risk costs at time t. |
| Purchase / Transfer Gain or Loss(t) | Net transaction result after carrying value, transaction cost, and remaining obligations. |
| Home-Purchase Contribution Coverage Ratio | Segregated assets available to cover obligations owed to residents for purchase contributions. |
| Repurchase Liquidity Coverage Ratio | Available liquidity relative to repurchase demand under the specified stress scenario. |
D.2 Research and Implementation Boundaries
Section titled “D.2 Research and Implementation Boundaries”Governance boundary
1. Complete jurisdiction-specific legal review before offering the product to residents or investors.
2. Treat Home-Purchase Contribution(t) as resident equity or a trust liability, never as unrestricted provider income.
3. Publish formulae, weights, data sources, vesting schedules, caps, floors, exceptions, appeal rights, and related-party relationships before enrollment.
4. Use independent trust custody, valuation, audit, property management, engineering review, and dispute resolution.
5. Maintain contribution coverage, maintenance reserves, repurchase liquidity, option reserves, debt-service capacity, and an orderly resolution plan.
6. Pilot with a limited number of households and evaluate affordability, exit, portability, quality, governance, provider compensation, risk, and solvency.
7. Prohibit spiritual, charitable, or public-benefit language from weakening consumer protection or pressuring participation.
The housing prototype is not a Tier A prophecy of millennial housing. The Purchase Option Premium(t) formula requires actuarial, legal, and pilot calibration. Terms such as twenty-five or fifty years, subletting thresholds, vesting percentages, and conversion factors are adjustable parameters rather than revealed constants. Every market comparison must use rights with the same quality, restrictions, and remaining term.