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West Central Community Land Trust Program of WCMCA
About the Program
Current Homes For Sale (click this link)
What is a Community Land Trust (CLT)?
A Community Land Trust (CLT) is a nonprofit, community-based organization that works to provide permanent affordability homeownership opportunities. In the truest sense, a CLT acquires land and protects it from the for-profit, real estate market. CLT’s hold the land they own “in trust” forever for the benefit of the community by ensuring that it will always remain affordable for eligible home buyers as their primary residence.
Income-eligible homebuyers have access to homes at a 20-25% reduced rate from market value homes. Our homes are either new construction or newly rehabbed with energy efficiency in mind, new mechanical systems, roofing, siding, windows, etc.
This affordability is made possible through a land lease and an agreement that if the buyer should want to sell, they would agree to sell it to another income-qualified buyer (with the assistance of WCCLT). The seller would receive 100% of earned equity (mortgage payments made, and any capital improvements) and 25% of any appreciated equity earned. This, in turn, allows the home to be sold to another buyer at the same affordable rate enjoyed by the seller. Many CLT owners go on to buy market rate homes once they sell. However, others enjoy living in their homes forever!
| Example | |
|---|---|
| Initial appraised value of property | $200,000 |
| Initial purchase of home | $150,000 |
| Appraised value at resale | $240,000 |
| Increase in value (appreciated equity) | $40,000 |
| Seller's share of appreciation | $10,000 |
| Resale price of home to eligible buyer | $160,000 |
(Plus seller would earn back what was paid down on the mortgage and any capital improvements made)
This example shows how the home REMAINS AFFORDABLE while also assisting home buyers to enjoy the stability of homeownership (instead of renting), and profit from homeownership to help increase personal wealth over time (a main advantage of homeownership).
Eligibility Information
In order to qualify for acceptance into the West Central CLT program, you must earn less than 80% of the Area Median Income (AMI) which varies based on your household size. Income is based on the household’s gross annual income and all individuals 18+ years of age living in the home must supply income documentation.
Additional eligibility information is as follows:
- Must be a US citizen
- Must have less than $15,000 in liquid assets
- Must be able to obtain financing (mortgage)
- Total Housing Cost must fall between 25% – 30% of gross monthly income
Application Details
How to apply for a WCCLT home (and/or be on the waiting list):
- Attend an informational orientation session at WCCLT. Contact Megan Radermacher at 320-304-3458, ext. 7217 to schedule a session.
- Submit an Affordable Housing Application to meganr@wcmca.org or mail to:
WCMCA Affordable Housing
1910 Aga Drive – Suite 206
Alexandria, MN 56308
Once it is determined the application is Mortgage Ready and there is a home available to purchase, the buyer will need to attend a Home Buyer Education Workshop and Obtain a Certificate. The buyer will also need to obtain a pre-qualification letter from a lender familiar with Community Land Trust models of homeownership.
Community Land Trust Application
Megan Radermacher, Housing Coordinator
320-304-3458 ext 7217
800-492-4805, Ext. 4
Fax: 320-335-2463
WCMCA
Attn: Megan Radermacher
1910 Aga Drive - Suite 206
Alexandria, MN 56308
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