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January 2, 2001
Kulshan Clt Brings Major Grant To Whatcom For New Homeownership Program
Kulshan Community Land Trust will receive a $210,000 grant from the Federal Home Loan Bank of Seattle to help launch the HomeBuyer Driven Program throughout Whatcom County. This marks the first major grant award for the fledging nonprofit housing developer, organized to provide affordable access to land and housing for community residents who would otherwise find homeownership beyond their reach. Washington Mutual applied for the grant from the FHLB on behalf of Kulshan CLT.
Kulshan CLT will use the grant to provide up to $7,000 toward the purchase of thirty existing homes in Whatcom County, using the CLT approach that keeps the homes affordable for the long-term. "Our strategy will build a growing inventory of homes that stay affordable, even when the housing market climbs further out of reach for local families," said Paul Schissler, Executive Director for the nonprofit (360 671-5100).
According to Jennifer Ernst, Manager of the FHLB Affordable Housing Program, "We're always proud to invest in projects that strengthen communities, and funding homeownership contributes to the long-term stability of neighborhoods and the people who live in them. The Kulshan CLT is particularly innovative. Its financial structure kept costs down so it needed less subsidy than other forms of affordable housing."
"Washington Mutual is involved in supporting nonprofits such as the Kulshan CLT because we believe it's important to help build strong communities in the areas where we do business," said Mary Kay Wallace, Washington Mutual Assistant Vice President and Manager (360 676-8900).
In the HomeBuyer Driven Program, the homebuyer, a mortgage lender and Kulshan CLT work together to keep housing costs at 30% of household income by helping the homebuyer qualify for a mortgage and downpayment assistance, and then bringing additional cash from the CLT at closing to cover the gap between the cost of a starter home and the price each household can afford in mortgage plus downpayment. At closing, the homeowner takes title to the improvements and enters into a 99-year ground lease. A resale formula in the ground lease assures the homebuyer that upon resale, s/he will recapture the downpayment and a fair share of equity while keeping the resale price affordable for the next buyer without additional subsidy.
The State of Vermont pioneered this innovative scattered site approach to homeownership, now being offered in many locations around the US with the encouragement and support of major banks, HUD and Fannie Mae.
Kulshan CLT also announced the election its new Board of Trustees and officers, capping a formative first year: Greg Winter will serve as President, Bill Sterling Vice-President, Sharon Robinson Treasurer, Kelly Mulford Secretary, with Reco Barnett, Danne Neill and Dan Tripps rounding out the 7-member Board.
For more info: Paul Schissler, KCLT Executive Director, (360) 671-5100
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