Pathway at Heritage Park

Community land trusts (CLTs) are organizations governed by a board of CLT residents, community residents, and public representatives that provide lasting community assets and shared equity homeownership opportunities for families and communities. CLTs develop rural and urban agriculture projects, commercial spaces to serve local communities, affordable rental and cooperative housing projects, and conserve land for urban green spaces. However, the heart of their work is the creation of homes that remain permanently affordable, providing successful homeownership opportunities for generations of lower-income families.

There are over 225 community land trusts in the United States.

A typical community land trust for affordable housing works like this:

• A family or individual purchases a house that sits on land owned by the community land trust.
• The purchase price is more affordable because the homeowner is only buying the house, not the land.
• The homeowners lease the land from the community land trust in a long-term (often 99-year), renewable lease.
• The homeowners agree to sell the home at a restricted price to keep it affordable in perpetuity, but they may be able to realize appreciation from improvements they make while they live in the house.

Community land trust homeowners receive their equity back, just like in a market rate home. The difference is in the market appreciation. Instead of being able to retain 100% of the market appreciation of the home, they retain 25% of the market appreciation. The remaining 75% of market appreciation stays with the home to keep the price affordable for the next buyer.

• Two years of steady, verifiable income
• Ability to afford a mortgage payment of 30% of gross monthly income
• One year of good rental history
• Less that $1,000 in non-medical collection debt
• Two years since the completion of a bankruptcy or foreclosure
• Zero unpaid judgements
• Ability to pass a criminal background and sex offender check
• Ability to pay a minimum of $1,200 for closing costs
• US Citizen or permanent resident

Pathway Church has always had a vision to have affordable housing on the land surrounding their church. They approached Habitat KC to partner with them in the endeavor due to the organization’s housing expertise. Habitat KC’s Construction Committee (which includes developers, builders, and architects) analyzed and determined it was a good location for a pocket neighborhood.