| The Juneau Housing Trust represents a new approach to creating affordable
housing for low-income Juneau homebuyers. Called a community land
trust, this model of housing is growing in popularity around the nation,
in areas like Juneau with high land costs.
Affordable Home Ownership:
Under a community land trust, the land is owned by a non-profit
trust, while the house is sold to qualified low-income homebuyers.
In Juneau, the typical price of a single-family lot is $65,000,
with often the same amount needed to develop the site for construction.
This extraordinarily high cost of land is putting home ownership
out of reach of many Juneau residents. Taking the land out of the
equation makes houses affordable.
A Permanent Pool of Affordable Homes:
The Juneau Housing Trust sets the resale price of any home in the
community land trust, ensuring its affordability for each successive
home buyer. Under its resale formula, the homeowner, when the home
is sold, receives all the money he or she uses to pay off the home
mortgage, plus 25% of the appreciated value of the home. Put another
way, the seller receives 25% of the difference in appreciation of
the home.
For example, if a buyer purchases a Juneau Housing Trust home that
is appraised for $160,000, and then sells it five years later when
it appraises for $180,000, the seller receives $5,000, plus whatever
funds he or she put into the purchase.
The rest of the appreciation goes to the Trust and back into the
house, allowing it to be sold again to a low-income homebuyer. The
Trust assists with the sale, and may buy the home itself if there
isn't a qualified homebuyer available.
A Say in Creating the Trust:
One-third of the board that administers the Juneau Housing Trust
is made of homebuyers in the trust or people who qualify for home
ownership. This gives low-income homebuyers the opportunity to help
create and run the trust.
Flexibility:
Community land trusts can take many forms, including entire neighborhoods,
single-family homes scattered throughout the community and even
mobile home parks. Some community land trusts even encourage industries
for their homeowners.
|
