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 with threshold income levels. 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.
- The lease cannot be terminated unless the owner fails to pay the lease fees or uses the land in a harmful way.
- The home owner has exclusive use of the property.
- To the outside observer, it appears that the home or farm owner is also the land owner.
- 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.
- Most Trust Montana home owners pay $30/month to Trust Montana as a ground lease payment.