Become a CLT Home Owner
Buying a CLT home opens up new opportunities for you, your family, and your community.
In exchange for purchasing homes at below-market prices, prospective owners agree to resale price restrictions that keep homes permanently affordable to subsequent households with similar income levels.
When the homeowner sells, an appraisal based resale formula allows the homeowner to keep 25% of the equity, plus their principal payments made against the mortgage. The remainder is kept by the trust, preserving the affordability for future low to moderate income families.
Do I Qualify?
Qualified buyers must:
- Have a household income less than 110% of the Area Median Income (*some funding sources which the DPCLT may rely on to develop its housing opportunities establish maximum eligible incomes of between 50% to 80% of the area median)
- Participate in a Homebuyers program through Habitat for Humanity Michigan or Inner City Christian Federation
- Qualify for a mortgage through an approved CLT Mortgage Lender
In some cases, funding restrictions may limit purchases to households with incomes at or below 80% of the Area Median Income (AMI) Income is based on the household’s gross annual income and all individuals 18+ years living in the home must supply income documentation. Income limits for household size are based on median income data from the county you live in.
What is a Ground Lease?
Many factors across Michigan and our nation have made the prospect of homeownership difficult for low and moderate income families. The Dwelling Place Regional Community Land Trust preserves land permanently for affordable home ownership.
Community land trusts create housing affordability through shared ownership: the homeowner owns the home and/or structure itself, while the Dwelling Place Regional Community Land Trust owns the land the home sits on, safeguarding affordability through a land lease to benefit the low and moderate income homebuyer, future homeowners, and the community generally.
The land lease allows the homeowner to enjoy exclusive use of the land beneath their home. The Ground Lease lasts 99 years, and is both renewable and inheritable.
Terms in the land lease define how equity and appreciation will be shared between the homeowner and the CLT over time. When a homeowner decides to sell, an appraisal is ordered and the homeowner is entitled to recoup from the sale their principal payments and 25% of the appreciation on the property from the time they purchased the property. The remaining appreciation is retained by the CLT, allowing it to keep the home affordable for the next low and moderate income homebuyer.
Benefits of Owning
CLT homes are more affordable than those purchased on the open real estate market because the Dwelling Place Regional Community Land Trust offers a purchase subsidy to its homebuyers. The purchase subsidy reduces the amount of financing the buyer must obtain in order to purchase a home and increases the loan to value ratios for the lender.
One third of the CLT board is made of CLT owners while the remaining members of the Board will be Dwelling Place appointees and dedicated community volunteers committed to maintaining long term affordability for homeownership in their community.
Homeownership provides stability and independence. It serves as a solid foundation from which to pursue personal and professional aspirations. Housing stability ensures people can thrive. The continuous engagement and support offered through the Dwelling Place Regional Community Land Trust to its homeowners will also be beneficial in mitigating other financial problems and preventing foreclosures.
Dwelling Place Regional Community Land Trust (DPCLT) home buyers receive support from Dwelling Place as long as they own their homes. The DPCLT will provide a wide array of support to its homeowners – from access to extensive homeownership counseling, informational newsletters, hands-on workshops, and opportunities to participate in efforts to improve the neighborhoods where they live.