Owning a Home

When an individual or a family buys a home within the community land trust (CLT) model, they purchase only the house and enter into a long-term agreement — usually a 99-year ground lease — with the CLT to lease the land. By taking the cost of land out of the real estate transaction, CLTs greatly decrease the cost of homeownership, which is often prohibitive for lower- and middle-income people seeking to buy a home.

When the homeowner chooses to sell, they work with the CLT to ensure the home is sold at an affordable price to the next qualifying homebuyer. By the CLT holding the land “in trust,” the home stays affordable for future generations.

As a community land trust, CLAM takes land and housing out of the speculative real estate market and holds it “in trust” to serve as a long-term community asset for housing people.

As a CLAM homeowner you agree to:

  • Occupy the home full time.

  • Maintain the home and keep it in good shape.

  • Sell the house to another income-qualified household at a price that keeps the house affordable forever. (CLAM assists with this process.)

Home ownership opportunities through CLAM are advertised according to CLAM’s current Fair Housing Marketing Plan.

FREQUENTLY ASKED QUESTIONS

  • To be eligible to buy a CLAM home, you need to have enough income so that your house payments are not more than one-third of your gross household income, but not so much income that you don’t qualify to buy a subsidized home. You will need to get a loan (mortgage) to purchase your home. CLAM can refer you to a mortgage broker familiar with CLT homes.

  • Income qualification requirements vary depending on possible funding restrictions. Generally, incomes need to be between 70% and 100% of Area Median Income (AMI), but there could be higher limits. 

    The chart below shows the income limits that existed in 2020 for the San Francisco Metro Area, which includes Marin County. The chart shows that, for example, a family of 4 is considered “low income” if their gross income is no more than $139,400, “very low income” if their gross income does not exceed $87,000, and “extremely low income” if their gross income is $52,200.

  • To prepare for buying a CLAM home, we recommend investing in your financial education. Learn how to reduce your debt and increase your credit score. CLAM requires that you attend an educational program for first-time homebuyers. If you get started on your financial education now, you can be ready when an opportunity arises!