Homestead Community Land Trust Programs
A community land trust is a nonprofit corporation that owns land and holds it in trust forever for the benefit of the community. CLTs are designed to balance the interests of individuals and the interests of the community at large. Individuals want security, equity and a lasting legacy for the heirs. The community at large benefits from the stability brought about by owner occupied homes.
Homestead provides affordable homeownership opportunities to low and moderate income households, allowing families who are otherwise priced out of the market to enjoy the stability and wealth building advantages of homeownership.
And finally, Homestead steward the ongoing affordability of the growing number of homes in its portfolio, allowing future generations to also have access to affordable homeownership in their communities. Many generations of low to moderate income households are served on a single housing investment. Each home added to the land trust will serve an estimated 10 households over its useful life, given an average tenure of 7 years. The value of the public and private investment in creating affordable homeownership is preserved and becomes highly leveraged over time. This stock of affordable homes becomes a community asset, enhancing community revitalization efforts while countering displacement of low-income households from their communities.
Homestead provides initial homebuyer education and counseling to help households make informed choices regarding homeownership and assists households to become purchase ready with intensive one-on-one counseling. Additionally, Homestead provides pre-qualification counseling for appropriate mortgage products, and support through the home purchase process. Homestead also provides ongoing post purchase homeowner education and assistance.
Homestead stewards the homes its homeowners purchase via the community land trust approach. When a home is purchased with Homestead, a significant public investment is put into each home. Homestead manages the sale and resales of these homes over time, assuring that low to moderate income qualified buyers benefit from the investment, and the homes in Homestead's portfolio remain affordable for the entire life of the home.
Recent Successes and Current Challenges
Homestead is the only Community Land Trust in King County, and the only home ownership organization which preserves affordability for the life of the home by stewarding the resale of each home in its portfolio. This stewardship guarantees that every home purchased through Homestead's programs remain available and affordable for many generations of working families. Homestead was awarded by HomeStreet Bank's Community Housing award in 2006.
Homestead is in an era of very rapid growth. As the portfolio of homes expands, and demand for these homes outpaces acquisition, Homestead is welcoming capacity building pledges of financial support.