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West Central Community Land Trust Program of WCMCA

About the Program

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

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.  The 80% AMI are as follows (for Douglas County):

 

Household SizeIncome Limit
1 person$44,500
2 people$50,800
3 people$57,150
4 people$63,500
5 people$68,600
6 people$73,700
7 people$78,750
8 people$83,850

How to Apply

How to apply for a WCCLT home (and/or be on the waiting list):

  1. Attend an informational orientation session at WCCLT.  Due to COVID restrictions, these will be virtual until further notice.  Contact Janelle Bennett at 320-304-3458, ext. 7216 to schedule a session.
  1. Submit an Affordable Housing Application to janelleb@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.

More Information

Janelle Bennett, Housing Coordinator

Email: janelleb@wcmca.org

Phone: 320-304-3458, Ext. 7214

Toll Free Phone: 800-492-4805, Ext. 4

Fax Number: 320-335-2463

Mailing Address:

WCMCA
Attn: Janelle Bennett
1910 Aga Drive - Suite 206
Alexandria, MN 56308

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