Land Trust And Builders Partner In Growing LongTerm Market
by Mark Puppe, Communications & Public Affairs Strategist Our local economy continues to grow, and career opportunities expand with it. For the “missing middle,” those earning 80% to 110% of the average median income, homeownership is out of reach and not getting closer. The National Association of Home Builders reported in August 2020 that the inventory of new single-family homes has fallen to a 3.3-month supply; the lowest on record dating back to 1963.
The Cass Clay Community Land Trust’s community-based Shared Equity Model subsidizes mortgages as a path for the missing middle to attain homeownership. CCCLT Chief Executive Officer Trent Gerads says, “When we look at the job growth in our area, we must continuously ask ourselves ‘How do we get people here?’ Filling those positions and building a solid economy requires the community to acknowledge that people won’t move here to rent an apartment.” Gerads points out that subsidizing a down payment does not mean the land trust is helping the missing middle avoid responsibilities. “Applicants must be on course to homeownership. CCCLT gives them a stake in the process rather being dependent upon it. These families have two kids, maybe a car payment, student loans or, whatever it might be, it’s hard for them to get into a home,” he says. “Could they honestly afford a home? Maybe, but it’s going to be that $100,000 fixer upper that will make them house-poor. We don’t want people bouncing between leases, either.” Although other homeownership programs operate in the F-M metro, Gerads believes that the land trust is an ideal opportunity to keep houses in the market and for builders to ensure they have a market in the future. Because the trust owns the land, the home cannot be sold and developed for anything other than a home. Fargo City Commissioner John Strand serves on the trust’s board of directors and adds, “There are many examples of approaches to providing affordable housing, but a land trust such as CCCLT is a model that will be long term and will provide such affordability into perpetuity for our broader community." CCCLT sees the estimated $50,000 average subsidy as an opportunity for the private sector to contribute not only funds, but other resources, such as construction, appliances and maintenance, that are required to build a functional and attainable home. The trust also seeks partnerships with builders and
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Plains Builder November 2020
