Nonproft land trust aims to keep homes permanently affordable -- here's now
As CEO of Seattle-based affordable housing developer Homestead Community Land Trust, Kathleen Hosfeld runs a lot of numbers.
She estimates that the gap between what King County home seekers who earn 80% of average median income can afford ($438,666) and the median market rate home in King County ($900,000) is a whopping 51%.
“The market really can’t serve our folks,” Hosfeld said. “For-profit developers can’t lose $300,000 on every home. So we step into that breach.”
Homestead’s method: Separate the cost of the home from the cost of the land so that the home price is set based on what is affordable to the buyer — first-time homebuyers only. Homestead retains title to the land under the homes in an arrangement called a community land trust. It’s a complicated funding model, with money from local, state and federal budgets, bank financing and private donations.
https://www.bizjournals.com/seattle/news/2024/10/07/affordable-housing-community-land-trust.html