Purchasing a home in the HRB community land trust
The HRB community land trust offers individuals and families who cannot afford the open market the opportunity to realize their dream of homeownership. Our homes are priced below market rate and typically do not require a conventional down payment. There are currently sixty in our homeownership program with more on the way.
Please read this page and all the downloads and links to understand how community land trusts work and who is eligible. (Translation services are available upon request.) HRB maintains a waitlist for our homeownership program. Anyone who is interested and believes they may be eligible is encouraged to apply.
How does the HRB community land trust work?
Community land trusts (CLTs) like HRB are nonprofits that remove land from the speculative market and conserve it for permanently affordable housing. HRB sells the home but retains ownership of the land underneath, which it then leases to the homeowner for a 99-year term with the option to renew. Regulations in the ground lease—not market forces—dictate the resale price, balancing affordability for the buyer with equity for the seller.
HRB is one of 24 community land trusts serving Washington. Click here for a list of CLTs in the region and other opportunities for affordable homeownership.
What are the benefits of owning a CLT home?
CLT homeownership offers the same benefits of homeownership on the open market:
- Stable and affordable monthly mortgage payments.
- The opportunity to build generational wealth.
- Tax-deductible mortgage interest.
- Homes are inheritable.
- Long-term security.
What is different about owning a CLT home?
- Homeowners signs a ground lease with HRB prior to purchase that outlines their ongoing obligations and the process to sell or refinance.
- Homeowners cannot own other real estate. If applicant owns a home but is selling due to divorce or other circumstances, it must be sold before completing the purchase.
- The owner must live in the home full time; the home cannot be rented.
- If homeowner decides to sell, the home must be sold to another HRB program-eligible household.
- Homeowner agrees to a limited profit on the sale to ensure that it is affordable to the next buyer. The sales price is based on the resale formula in the ground lease (not the market rate). Typically, 1.5% interest compounded annually.
- Homeowners have the opportunity to serve on the HRB board.
CLT homeownership may entail requirements not found in the open market, but it also offers a unique benefit—long-term stewardship. HRB supports prospective homeowners during the process of qualifying for and buying a home and continues that support post-purchase, assisting with home maintenance resources, refinancing, the homeowners’ association, and more. When the time comes to sell, we find a buyer who meets our program qualifications and facilitate the sale without charging a commission.