Frequently Asked Questions
of ACLT Homebuyers
You Own It.
You Can Sell It.
But Not for So Much that Others Can't Afford It.
Homes purchased through Albany CLT's programs cost less than market rate homes. Homes purchased through Albany CLT's programs are also decent, safe and mechanically and structurally sound. When homeowners on ACLT's land decide to move, they can sell their homes. However, the land lease gives ACLT the right to re-purchase the home for the amount that the family has invested in it. If this right is exercised, ACLT will then sell the home to another family that would not be able to afford homeownership otherwise.
Who Buys Through ACLT?
|
Help yourself and your community! |
Can I Sell My Home?
Yes!
When an Albany Community Land Trust homeowner wants to move there are several options. The home can be sold directly to a low-to-moderate income buyer, can be sold back to ACLT, or it can be given to the children or other qualified heirs of the homeowner.
An ACLT homeowner who sells his or her home will get their equity (the amount of money that they used as a down-payment as well as the portion of the mortgage paid off) plus 25% of the appreciated value of the home.
The sales price for the house is determined using an independent appraisal of the value of the house and the resale formula outlined in the ground lease.
The following is an example of how the selling price for Albany Community Land Trust house would be determined:
Initial purchase price of an ACLT home: $ 95,000
Initial value of the home: $100,000
Value of the home at resale: $140,000
Increase in value of home: $140,000 - $100,000 = $ 40,000
Resale price: $95,000 + (25% x $40,000) = $105,000
In this scenario, the seller receives the amount of mortgage principal they have repaid, their initial down-payment, plus $10,000 from appreciation.
The resale formula preserves the affordability for the next family who will buy the Community Land Trust house. Essentially, by agreeing to the resale formula, an ACLT homebuyer is agreeing to help another limited income family purchase a house in the same way that they were helped in purchasing their home.
When an Albany Community Land Trust homeowner wants to move there are several options. The home can be sold directly to a low-to-moderate income buyer, can be sold back to ACLT, or it can be given to the children or other qualified heirs of the homeowner.
An ACLT homeowner who sells his or her home will get their equity (the amount of money that they used as a down-payment as well as the portion of the mortgage paid off) plus 25% of the appreciated value of the home.
The sales price for the house is determined using an independent appraisal of the value of the house and the resale formula outlined in the ground lease.
The following is an example of how the selling price for Albany Community Land Trust house would be determined:
Initial purchase price of an ACLT home: $ 95,000
Initial value of the home: $100,000
Value of the home at resale: $140,000
Increase in value of home: $140,000 - $100,000 = $ 40,000
Resale price: $95,000 + (25% x $40,000) = $105,000
In this scenario, the seller receives the amount of mortgage principal they have repaid, their initial down-payment, plus $10,000 from appreciation.
The resale formula preserves the affordability for the next family who will buy the Community Land Trust house. Essentially, by agreeing to the resale formula, an ACLT homebuyer is agreeing to help another limited income family purchase a house in the same way that they were helped in purchasing their home.
Want to Learn More?
Contact us at:
Albany Community Land Trust 255 Orange Street Albany, NY 12210 518-426-1296 tel 518-434-1767 fax |
OR |
Visit Grounded Solutions Network to review the national CLT network website:
Frequently Asked Questions Policy Action History of Community Land Trusts |