What is the Lawrence Community Housing Trust (LCHT)?

How does the Housing Trust guarantee continual affordability?
The Lawrence Community Housing Trust builds new homes and rehabilitates old homes, then sells to eligible buyers for approximately $50,000 less than the home's market appraisal value. In exchange for this subsidy, the buyers agree that if they resell their LCHT home, the price will be affordable to another eligible buyer. Read more about this affordability model in a national scope at: http://www.cltnetwork.org/

What does this mean?
To the LCHT sellers, this means they gain equity from mortgage payments, plus improvements made to the land and 25% of the market appreciation. To the new LCHT homebuyer, this means the house is affordable because the purchase price has not skyrocketed.

Doesn't a restricted resale agreement reduce the profit from homeownership?
No, because those who qualify for our program don't have other options for homeownership. They either cannot afford  the market rates or cannot afford to repair an initially affordable home that needs a lot of work. The housing trust provides a chance for a low-to-moderate-income family to buy a home. The resale profit to an LCHT homeowner, while limited, is something renting never provides.

Why do we restrict the resale prices?
Because it costs so much money to make a house affordable, we want to keep the house affordable beyond the first purchase. Studies indicate the demand for affordable housing will explode in the next ten years, and it's important that every dollar that makes homes affordable now is saved to keep them affordable later.

How, exactly does the limited resale agreement work?
Legally, LCHT separates ownership of the house from ownership of the land the house sits in. LCHT sells the house to an eligible buyer and leases the land to the buyer for $25 per month. The new LCHT homeowner uses the property like any other homeowner - Painting, mowing, putting up a fence - LCHT isn't a typical landlord. The land-lease agreement is the legal method that allows LCHT to keep the home affordable to the next buyer. When ready to sell, the homeowner calls us.

What are the eligibility requirements?

Find out if you qualify for the Home Purchase Program