To create permanently affordable housing, SHCDC established a Community Land Trust (CLT). This system places the land in a trust and allows homeowners to own the house on the land. Removing the land from the sale of the home saves the buyer over $40,000. To make sure that the house is permanently affordable, the homebuyer agrees to sell the house at an affordable price, if they decide to sell at all.
How do I buy a CLT home?
- Must reside or work within corporate limits of Monroe County for at least 6 months prior to purchase.
- Must be at or below the maximum income limit of 120% area median income at the time of purchase. This is determined by family size and adjusted annually by HUD.
- Must have completed homebuyer education through the City of Bloomington’s Homebuyer’s Club education course or through Habitat for Humanity Homeowner Education.
- Must have sufficient savings to pay the deposit and closing costs, estimated at $6,000 to $8,000. Though a $1,000 deposit is required from the homebuyer-closing costs can come from other sources, such as a down payment assistance program.
- Must be in the position to afford and qualify for a mortgage.
- Not have an ownership interest in another primary residence at the time of purchase of a SHCDC home.
Shared Equity Homeownership Program (SEHP)
Shared Equity homeownership is a tool to preserve housing affordability that keeps homes affordable for low to moderate-income households today and for future homebuyers. Summit Hill CLT utilizes an appraisal-based resale formula to determine and maintain an affordable sales price. Appreciation of the home is determined by comparing the appraised value of the home at purchase to the appraised value of the home at resale. The homeowner earns a percentage of the home’s appreciation, while the remainder of the appreciation stays with the house to reduce the sales price and keep it affordable for the next low to moderate income homeowner.
Advantages of the SEHP:
- Helps low to moderate income earners become homeowners;
- Lowers home prices for buyers;
- Owner builds personal wealth from equity in their home;
- Strengthens communities by protecting long term affordability and property values.
Land Trust Governance
The Summit Hill Community Land Trust is a program of the Summit Hill Community Development Corporation and is governed by a committee made up of SHCDC board members, Bloomington Housing Authority staff, CLT property homeowners and general community representatives.
