Who are are. What we do.
Who we are KulshanCLT is a private nonprofit corporation that acquires and holds land for community benefit while providing secure affordable access to land and housing for residents throughout Whatcom County. Like more than 200 CLTs nationwide, KulshanCLT avoids speculation and absentee ownership of land and housing, promotes ecologically sound land-use practices, and preserves the long-term affordability of housing. Employing a shared equity strategy to balance the need of homeowners to build equity and gain stability with the need of the community to preserve affordable homes for future generations, KulshanCLT grows a community that is vibrant, diverse, sustainable and a legacy for future generations. With 100 homes in the Trust, KulshanCLT plans to create at least 12 new homeownership opportunities per year in the next three years. What we do Using the community land trust strategy, KulshanCLT partners with families whose incomes are below median to help them become first-time homeowners. Over the past 20 years, housing prices have climbed twice as fast as earned incomes, creating an income gap that widens every year. KulshanCLT bridges the gap between the initial cost of the home and what the homebuyer can afford. Homeowners typically pay two-thirds of the cost of the initial purchase of their home, with mortgage and downpayment combined. A one-time community investment from state, federal and private resources covers the balance and keeps the home affordable long-term. Homeowner benefits KulshanCLT’s programs provide financial education, counseling, access to financing, and pre- and post-purchase services to income-qualified buyers to purchase affordable priced-homes, build home equity and stability, and put down roots. We help income-qualified households to navigate through the homebuying process and provide access to below market rate first mortgages and community investment to purchase affordable homes. We provide workshops and resources so homeowners gain skills to preserve and maintain their home investment and reach their financial and homeownership goals. Community benefits KulshanCLT is an economic engine, creating over $18 million in local homebuying so far, including first mortgages from local lenders. KulshanCLT promotes urban infill and helps people live near their workplace, resulting in less traffic, pollution and other negative impacts. With homes scattered throughout Bellingham and Whatcom County KulshanCLT helps keep neighborhoods economically and socially diverse, and affordable for the long term. Community investment embedded in each KulshanCLT home grows over time, retaining its affordability for generations of homebuyers. Our strategy The CLT model is one of many shared-equity strategies that balance a homeowner’s need to build equity with the community’s need to keep housing affordable. Unlike self-help affordable homeownership programs like H4H, the CLT strategy holds title to the land and leases it long-term and at low cost to homeowners. Community investment embedded in the property long-term to keep the home affordable for every subsequent homebuyer. Differences between community and conservation land trusts Conservation trusts primarily control rights to undeveloped land to preserve open space, ecologically fragile or unique environments, wilderness, productive forest or agricultural land. CLTs are primarily concerned with acquiring developed or developable land for specific, and generally residential, permanently affordable community uses. Commitment to local ownership and control CLTs provide greater local control over land and housing ownership. KulshanCLT is a membership organization whose members elect the governing board that includes leaseholders, non-resident members and community members. Dual Ownership. CLTs protect the community’s long-term interest by continuing to own land while conveying the long-term use of the land to individual households. A 99-year ground lease ensures homeowner security, privacy, stability, a legacy for heirs, and the long-term affordability of the home. Protects Long-Term Affordability of Housing. CLTs protect affordability for future residents by limiting the appreciation of the dwelling and improvements on their land. KulshanCLT’s shared-equity approach balances the need of the homeowner for a reasonable return on their investment and the need of the community to retain affordable homeownership for every future homebuyer. An Ongoing Development Program. CLTs are committed to an active acquisition and development program that strives to meet diverse community needs. KulshanCLT employs scattered-site acquisition of existing homes and new development. We offer free educational courses and workshops for potential homebuyers and others. Flexibility. CLTs can accommodate a range of specific programs while providing a focus for community organizing. A CLT can help create and preserve such critical local resources as affordable housing, family farms, neighborhood businesses and social services while establishing land-use controls that protect the long-term interests of the community. Local government support Local governments support CLTs throughout the United States. In several states, municipal governments are taking the lead in forming new CLTs. The City of Chicago created a citywide CLT in 2006, and Irvine, California, has announced its commitment to fund the Irvine Community Land Trust with more than $250 million to create nearly 10,000 homes for working people in that community over 10 years. KulshanCLT works cooperatively with the City of Bellingham, Whatcom County, the Washington State Office of Community, Trade and Economic Development, and other funders to secure community investment and program support for our homebuyers. Acquiring property CLTS utilize a verity of strategies to acquire property and homes. Many community land trust employ the scattered site approach, partnering with homebuyers to purchase good quality homes and condominiums from the open market. Others choose construction of new homes. Still others, like KulshanCLT, employ both strategies. When building new homes, CLTs may receive donated property, donations to buy property, or purchase property – often at a discount, then work with one or more lenders to secure financing. In the case of Matthei Place, KulshanCLT purchased the property at a discount from the City of Bellingham, then took out a construction loan with a local bank to finance the construction. A local architect, civil engineer, general contractor and other building professionals were employed to complete the project. As with scattered site acquisition, community investment was used to make the homes affordable for homebuyers. In general, financing comes from a variety of sources, including local lending institutions. Financing homes and new construction Banks and financial institutions provide mortgages for homes on leased land. There are dozens of banks, housing finance agencies and mortgage lenders who lend to CLTs. CLTs have negotiated mortgage agreements that address the legitimate concerns of lenders while protecting the CLT‘s long-term interest in the property. Local lenders work directly with KulshanCLT’s homebuyers to provide homebuyers with safe, secure 30-year fixed rate home mortgages. Selling a KulshanCLT home Determing the resale price KulshanCLT’s resale formula allows homeowners to predict the estimated resale price of their home. The homeowner earns 1.5% per year in compound interest on their basis (original mortgage amount plus downpayment). At resale, the homeowner recaptures their downpayment, mortgage principal payments, and the value of certain improvements that also earn 1.5% interest per year. We work with homebuyers on an annual maintenance plan to help them retain the value and minimize reductions in value due to damage or neglect. Retaining community investment When land is removed from the marketplace, but not the buildings on the land, the speculative value that would have accrued to the land is merely transferred to buildings on the land. Furthermore, if housing is in short supply, then residential structures become the object of intense speculative activity. In many cases, the owner has benefited from subsidies knowing their value would remain in the property. By allowing a fair return on owner investment, KulshanCLT locks in the value of the community investment for the future benefit. Shared ownership Mixed ownership of land and buildings championed by CLTs is not a new concept, but one with a longstanding history in enterprise and housing throughout the United State. The separation of land and building and the leasing of land to the owner of the buildings is an established and widely-used mechanism. New York City’s Rockefeller Center is a good example of a commercial building on leased land. Cities like Baltimore, Maryland, and counties like Davis County, California, include areas of homeowners on leased land. Get involved Each year KulshanCLT helps make the dream of homeownership a reality for more people in our community. Working in partnership with our generous and growing community of supporters and donors we are able to achieve our mission of strengthening community through affordable homeownership. There are many ways you too can help us grow a community everyone can afford, today and for years to come. > Become a member or contribute a tax-deductible gift > Become a Business Partner supporter > Volunteer to help with a project or event > Invite us to speak to your employees about homeownership > Join us for our engaging and topical Speakers Series events > Invite us to make a presentation to your professional organization or service club > Invest in a Peoples Bank Community Connections CD: A portion of interest earnings is donated quarterly to KulshanCLT. > Selling your home or rental? Contact us about how we can work together so an income-qualified applicant can afford to buy it. > Leave a legacy of affordability for future generations. Contact us to learn about planned gift opportunities.
A homeowner may sell their home to an eligible buyer and capture the equity they have built in the property. A KulshanCLT homeowner can expect to build $30,000 to $45,000 or more in equity over 10 years or more. Today, with more than 95 homes in the trust, and over 115 homebuyers served, we have had 20 resales. With the initial investment recouped and equity earned, about one-third of homesellers have gone on to purchase market-rate homes.
