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July 30, 2002
Residents Buy Homes in Partnership with Kulshan CLT
Kulshan Community Land Trust announced today it has helped two Whatcom County residents become first-time homeowners. Both Jenifer Young and Joan Riddick will be moving into their homes this week. "I would never have been able to afford a home in Bellingham without KCLT's help," says Young.
These sales, utilizing the innovative community land trust model, are the first of their kind in Whatcom County. Using both private and public financing, Kulshan CLT is able to fill the downpayment gap between an affordable mortgage and the cost of a starter home in Whatcom County. Peoples Bank and Fannie Mae worked with Kulshan CLT to make the homebuyers' mortgages possible.
Kulshan CLT Executive Director, Paul Schissler, explains, "Basically, we believe if someone works hard and pays their bills, they ought to be able to own a home. And if that home is near their job, then less traffic and sprawl is good for all of us."
The City of Bellingham has set aside money for first time homebuyers for several years. Mayor Mark Asmundson says, "This is just what Bellingham needs. The beauty of the CLT model is that it captures the value of public investment for long-term community benefit."
Because Kulshan CLT retains ownership of the land, it keeps the homes permanently affordable. Under the 99-year ground lease agreement, homeowners have full rights and responsibilities to and for the land, but agree that when or if they sell their home they do so at a price that is affordable to the next buyer. This model allows homeowners a reasonable rate of return of their investment, but limits speculative or unearned gains that would make the home unaffordable to other wage-earning homebuyers.
Kulshan CLT has enough "downpayment gap assistance" funds to help an additional ten homebuyers this year. With population growth and economic investment in Whatcom County driving up real estate prices so that fewer and fewer working people can afford to live in our community, cooperative programs like Kulshan CLT are needed more than ever.
As part of the program's requirements, individuals must have a steady income, low debt, and some savings for a modest down payment. "Entry-level professionals, teachers, and city/county employees are just a few of the people who could be served by KCLT's new program," Schissler commented.
Kulshan Community Land Trust is one of 10 community land trusts in Washington and over 100 around the United States. A volunteer Board of Trustees, elected by the membership, governs the organization. For more information on Kulshan Community Land Trust, visit www.kclt.org or call (360) 671-5600.
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