Umm....well...maybe because you sold the house????
Maroons.
This is just going to encourage people to go further into debt for homes and home improvements based on some phonus-balonus pipe dream of price appreciation, which is one of the main things which got us into the mess we are in now.
Suppose the developer sells me a house in 2007 for $500,000 with one of these 1% clauses in the deed. If in 2013 I have to sell the house at $375,000, is he going to kick in one percent of my loss?
Yeah, like the frickin' criminals didn't make the profit on the "improvements" when they sold it to the family that sells it 50 years later. What a crock of sh**. This country is going to he** in a hurry.