CLT Homes
How Does a CLT Work?
When an individual, or family, purchases a GH Area CLT home, that home sits on land owned by the GH Area Community Land Trust. This means that you own your home, but GH Area CLT owns the land.
This makes the purchase price of your home more affordable because you are buying only the house, not the land.
As the homeowner, you lease the land from the Community Land Trust in a long-term (99-year), renewable lease.
When you sell the home, you agree to sell at a restricted price to keep the home affordable.
Homeowner Costs & Responsibilities
You, as the homeowner, are responsible for maintaining the home and property in accordance with the ground lease and master deed requirements.
The Grand Haven Area CLT Ground Lease fee is $30 per month.
When purchasing the home, you agree to, and sign, a long-term, renewable ground lease.
You, as the homeowner, will pay your property taxes in two separate bills-one for the improvement (which is the house), and one for the land.
You will have full use of the leased land. You can put up a fence, do your own landscaping, plant a garden, put up a playset, etc. There are very few restrictions on your daily use of the land.
CLT has a fixed rate resale formula. This fixed rate formula is detailed in the ground lease. It is easy to calculate your equity at any time. The fixed rate increases the longer you own the home. The actual dollars will vary for each homeowner. This will be discussed during your pre-purchase housing counseling with NHS.
Neighborhood Housing Services (NHS) provides permanent, supportive housing counseling services while you own your home. Their housing counseling services are designed to help guide you through this process. Neighborhood Housing Services is not a mortgage lender, a realtor, or the developer.
Other FAQs
Am I responsible for paying taxes and utilities?
You are responsible for maintaining the home and property as well as paying all taxes that are due. Utilities are in your name and are paid directly to the utility company as the homeowner.
What if my income increases while I am living in the home?
If your income increases while you are living in your home, your CLT eligibility will not be affected. Your income is only evaluated at the time you enter into a purchase agreement for a home in the CLT program.
What is the benefit of a shared equity home ownership program (CLT)?
Your monthly mortgage payment is lower in this shared equity program with the Community Land Trust because your home purchase price is less than a market-rate home. Shared equity buyers (CLT participants) receive land as a subsidy to support the affordability of their new home.
Why purchase a CLT home?
This type of home ownership is perfect for the buyer who wants to live in a certain area, in a brand new, easy to take care of home but with a lower monthly payment. You build wealth in the form of equity, just at a slower rate than with a traditional home purchase.
Does the CLT make money from me?
No, a CLT is a non-profit entity created to protect affordability forever. The CLT holds ownership of the land to ensure many generations of moderate to low income buyers can afford the home. The $30 per month ground lease fee pays for the stewardship you receive with the home purchase.
Can I rent my home?
No, CLT homes are for principal residences only.
Will the CLT homes be built the same as the market rate homes?
Yes. All 30 of the homes being built at Robinson Landing are wood-frame, slab-on-grade, with extra insulation, and asphalt shingles. Each house has an attached outdoor storage space. Each house has the same contractor using the same materials. There will be no differences in quality of materials or workmanship in the design or build of these homes.