It is also the rate used when a building is converted to one- to three-family homes.

The three-family homes will be sold for $363,000 to people earning $65,000 to $100,000 a year, depending on family size.

The garden is to be demolished on Sept. 30, and replaced by a development of three-family homes.

The average price of the subsidized three-family homes was $480,000.

When the company started, a three-family home was selling for about $325,000.

"Many two- and three-family homes are owned by elderly people who could end up selling to an investor."

In the housing stock there is an especially large number of two- and three-family homes.

Buyers must live in the buildings, which are generally renovated as two- or three-family homes, for at least six years.

Assessments on one- to three-family homes could be raised only 6 percent a year, or 20 percent over five years.

But even with the rising prices of two- and three-family homes in some areas, they remain cost-effective options.