LEAP Housing Solutions has the first-ever Community Land Trust for affordable housing in the Treasure Valley, guaranteeing homes in the trust will be affordable forever.
What is the LEAP Housing Trust?
By definition, the Treasure Valley Housing Trust is a Shared Equity Model, also known as a Community Land Trust. In this model, homeowners own their homes and the land is owned by the Trust in order to guarantee "perpetual affordability" even when someone sells.
Shared equity homeownership is a self sustaining model that balances wealth building for families who would otherwise be unable to afford owning a home by preserving the community’s investment.
In return for buying a home below its market rate value, the family agrees to limit any equity when they sell. This first family shares their equity by paying it forward.
Visit www.finallyaffordable.org to learn all about our properties.
Why does the Treasure Valley Need a Community Land Trust?
New affordable inventory is critical as Boise real estate inventory has decreased during the COVID-19 era and prices have increased. Median home prices have soared to over $416,287 for new construction (Boise Regional Realtors Market Statistics, April 2020) making homeownership out-of-reach for low-income families.
Coupled with an increasing populus and real estate inventory failing to meet the increased market demands adequately, there is a strain in the Treasure Valley for affordable housing. The Treasure Valley Housing Trust aims to hold land in trust for affordable homes for purchase, forever.
The Housing Trust recently acquired its first property, Caritas Commons
The first phase of the Treasure Valley Housing Trust project is exclusively for low-income families earning less than 80% Area Median Income (AMI). Construction for Caritas Commons is expected to begin in Fall 2020.
The community will have 14 brand new homes for purchase, built by LEAP’s partner, indieDwell. The first four of the brand new 4-bed, 2-bath homes will be sold for $212,000 each to households making 80% of the area median income (AMI) or less.
Learn more about the Caritas Commons community here.
Invest in a Land Trust with LEAP Housing
St. Alphonsus just helped LEAP Housing Solutions create the first-ever Community Land Trust for affordable housing in the Treasure Valley, and they aren’t wasting any time building homes for low-income families.
To ensure the perpetual affordability of these homes, a community donation of $40,000 per unit is needed. St. Alphonsus has already contributed a public investment for 6 of the 14 at Caritas Commons to ensure that these homeownership opportunities remain affordable for generations.
A one-time investment makes a home affordable for purchase by a working family with modest means, and the home remains affordable for family after family. In other words, the one-time public investment into the LEAP Housing Trust serves an endless number of families.
The Treasure Valley Housing Trust is currently looking to expand their land holdings to develop permanently affordable housing, contact us today if you want to sell or donate land to the Trust.
“The only thing better than creating affordable housing opportunities is ensuring opportunities remain affordable forever.” -- LEAP’s Executive Director Bart Cochran
Common misconceptions of a Community Land Trust
LEAP operates a Community Land Trust, not a Land Trust. A “Land Trust" is a model that just preserves open spaces. A Community Land Trust is an organization. It is not land itself, but a group which governs and owns the land in trust for the community.
How can a family buy a house now for $212k, sell it for $300k and claim that it is affordable for a family making 80% AMI? Because the property increased in value does not determine that it is affordable.
A homeowner will still get some of the equity from the market/capital improvements, but they will also share the rest of the equity with those who come after. A homeowner still gets equity, just not at the rate that the market determines.