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November 7, 2001
New Funding Launches KCLT's First Affordable Homeownership Program
Kulshan Community Land Trust (KCLT) has been awarded two housing grants totaling over $500,000. According to KCLT Executive Director Paul Schissler, " We are now officially up and running and launching our first affordable housing program using the community land trust model. We received word that KCLT has been offered a $321,100 Housing Trust Fund Grant from the State of Washington and $200,000 from the City of Bellingham." As a result, the organization is holding a Launch Party to ramp up enrollment in its HomeBuyer Driven Program on November 15 from 4:30 PM to 7:00 PM at the Bellingham Ferry Terminal in Fairhaven. Anyone interested in learning about the program is invited to attend.
"These major grants really get our first program off the ground," commented Schissler. The City of Bellingham's Homebuyer Assistance Program is financed through the HOME Investment Partnership Program, funded from the United States Department of Housing and Urban Development (HUD). The Housing Trust Fund grant is awarded by the State of Washington's Office of Community Development.
Through the HomeBuyer Driven Program, a first in Whatcom County, KCLT is able to help first time homebuyers purchase existing residences and convert them to permanently affordable community land trust homes. "This program," cautions Schissler, "is not for everyone, but it helps working families who want to own a home but can't come up with the big down payment, so they are forced to rent." 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, city and county employees, reporters - these are just a few of the people who could be served by KCLT's new program," Schissler commented.
In the Homebuyer Driven Program, the homebuyer, the lender and KCLT work together to keep housing costs at 30% of household income by helping the homebuyer qualify for mortgage and down payment assistance. KCLT then adds additional cash at the closing to cover the gap between the cost of a starter home and the price each household can afford in mortgage plus down payment.
At closing, the homeowner gains title to the improvements and enters into a 99-year ground lease. A resale formula in the ground lease assures upon resale, the homebuyer can recapture the down payment and a fair share of equity while keeping the resale price affordable for the next buyer without additional subsidy.
To become eligible, individuals must first become a KCLT member and complete the orientation. This can be done at the Launch Party. An appointment with the
Homeownership Coordinator is then set to analyze qualifications and readiness for homeownership. After the potential homebuyer obtains pre-approval of the mortgage financing, they can then begin to shop for a home that meets both the family's needs and KCLT program guidelines. The organization is involved throughout the home buying process until keys are handed over to the new homeowner.
"We are having the event because we have started working with prospective home buyers and want to let others know about the program. Besides the additional funds, we now have paid staff and an office in the Old Bellingham Hardware Building on Holly Street in Bellingham. And the new logo designed by MB Design in Bellingham is being unveiled just for the event," commented Schissler. "The community support has been fabulous. We want to encourage all Whatcom County residents interested in our HomeBuyer Driven Program to attend. Broad community support is important to our efforts. We have built and continue to build a solid volunteer base of people who appreciate homeownership and care about this community," added Schissler.
Information/Orientation sessions are scheduled for volunteers and prospective homeowners from 4:30 PM to 5:00 PM. A short business meeting will be held at 5:30 PM. For more information contact, Erika Malone, Homeowner & Member Services Coordinator at (360) 671-5600.
KCLT organized to provide affordable homeownership opportunities using state of the art community land trust methods to serve low- and moderate-income households in Whatcom County, where real estate prices continue to outpace household income.
KCLT is one of 10 community land trusts in Washington and over 118 in the United States. A volunteer board of trustees governs the organization.
For more information on KCLT contact Paul Schissler (360) 671-5600.
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