- The CCLT acquires land that a new home is then built on or acquires a home that is for sale in the community.
- An appraisal is conducted to set the fair market value of the house and land.
- The house is sold to a qualifying family; but, the deed for the land is kept with the CCLT & leased for a nominal monthly fee.
- When the homeowner wishes to sell, a second appraisal is conducted to establish the new value of the house AND land.
- 75% of the appreciation in value stays with the CCLT land, where it serves to make the house affordable for the next buyer.
The Chaska Community Land Trust is designed to provide the CCLT homeowner with a fair return on their housing investment while assuring that the home remains affordable to the next household buying it. The current homeowner upon resale would receive:
- 25% of the increase in market value of their home and the land it sits on during their ownership
- Any cash down payment and the equity earned by retiring their mortgage from the bank
The land trust at work:
