Community Land Trust
Homes in Robinson Landing priced between $139,900 and $179,900 are part of a shared equity home ownership program called a Community Land Trust (CLT).
A Community Land Trust (CLT) is a non-profit entity created to protect affordability in perpetuity. The CLT holds ownership of the land to ensure many generations of moderate-income buyers can afford the home. Homes on Community Land Trust (CLT) lots are for principal residence use only.
16 of the lots in the Robinson Landing neighborhood are owned by the Community Land Trust (CLT). The homes built on these lots are sold to qualified buyers.
How does a Community Land Trust work?
Income eligible buyers enter into a 99-year ground lease with the CLT. Under this lease, you - the homeowner - can do what you'd like with the land in accordance with local city ordinances and condo restrictions and you maintain it as your own.
At the time of resale, the land subsidy stays with the home. All additional accrued equity is shared with the CLT. You earn less equity than a traditional market-rate sale, but you spend less money month-to-month while living in the home. The next home buyer will also be income restricted to 80% of the area median income at the time of sale and must be approved by the CLT.
What is the benefit of a shared equity home ownership program (CLT)
Your monthly mortgage payment is lower in this shared equity program with the Community Land Trust because your home purchase price is less than a market-rate home. Shared equity buyers (CLT participants) receive land as a subsidy to support the affordability of their new home.
How much does the CLT land-lease cost?
The buyer enters into a fixed rate 99-year ground lease with the Community Land Trust at the time of the home purchase. The cost for the ground lease for the homeowner is $30 per month.
Can I still build equity in a Community Land Trust (CLT) home?
Yes, you can build equity in your CLT home. At the time of resale, the land subsidy stays with the home. All additional accrued equity is shared with the CLT. You earn less equity than a traditional market-rate sale, but you spend less money month-to-month while living in the home.
When you are ready to sell your home in the CLT, you will follow a Fixed Rate Resale Formula that restricts the price you're able to resell your home at. Find more information here.
Are there restrictions on the CLT land?
Although the CLT owns the lot that the home is built on, the CLT has very limited impact on your day-to-day use.
You are responsible for maintaining the home and property as well as paying all taxes that are due. Utilities are in your name and are paid directly to the utility company by you, the homeowner.
What if my income increases while I'm living in the home?
If your income increases while you're living in your home, your CLT eligibility will not be affected. Your income is only evaluated at the time you enter into a purchase agreement for a home in the the CLT program.
As with any home purchase, a qualified home buyer must have acceptable credit, down payment, and proof of income to satisfy the lender that will provide the mortgage.
CLT buyers must not exceed 80% of the Area Median Income (AMI) for the county. The combined income of all those who will be living in the home at the time of purchase cannot exceed the income limits for that year
2021 Annual Income Limits for Community Land Trust Buyers
Total Household Income
1 Person Household
2 Person Household
3 Person Household
4 Person Household
5 Person Household
6 Person Household
Interested in more information? Complete the inquiry form here!