Home buyers with CLT programs purchase a home at a subsidized price and enter into a long-term agreement (the Ground Lease) to preserve the affordability of the home. CLT homes are sold to households that are income qualified at specific income levels – the exact level depends on the project.
The CLT home owner or farm owner owns the house and other property improvements and the CLT owns the land beneath. The Ground Lease provides the owner secure, long-term rights to occupy and use the land.
- The Ground Lease runs for 75 years and is renewable and inheritable.
- The homeowner has exclusive use of the property.
- The homeowner can sell the home whenever they like, but they must follow the resale formula to ensure the next income qualified buyer can afford the home.
- The homeowner can make capital improvements to their home.
- Home and farm owners on Trust Montana land can give the home to a family member or members in their will. Some projects that include Federal HOME subsidy require that the heir is also income-qualified if they want to keep the home. If an heir inherits the home and their income does not fall under the threshold for that project, they would need to sell the home or farm to an income-qualified person.
No Income Restrictions once home or farm is purchased
- After purchase, the home owner’s income is never reviewed again by Trust Montana.
- Depending on the property, Trust Montana home owners pay either $30 or $40 per month to Trust Montana as a ground lease payment instead of paying to purchase the land.
- Homeowners on CLT land are required to maintain their property in good condition.
- Homeowners must use their CLT home as their primary residence.
- Homeowners cannot rent out their home as a short-term vacation rental.