History of KulshanCLT and the CLT Strategy
Since our incorporation in 1999, KulshanCLT has grown to meet the increasingly challenging task of providing access to homes working people can afford to buy in Bellingham and Whatcom County. Home prices in Whatcom County have increased by 57% since the first home came into the trust in 2002. During the same period, median wages have increased at only three percent per year, creating an ever-widening affordability gap and forcing many low- and moderate-income first time homebuyers to postpone or forego purchasing a home. Even today, the reality of buying a home in Whatcom County remains out of reach for most low-income homebuyers.
KulshanCLT addresses this need by creating stable, resilient homebuying opportunities and providing education and financial counseling. KulshanCLT partners with low- to moderate-income first time homebuyers, helping them qualify for low-interest mortgages, access sources of one-time mortgage gap financing that would not be available to them through any other means in Whatcom County, and participate in pre- and post-purchase classes and workshops to help them succeed as homeowners and protect their home investment. A 99-year renewable ground lease (or affordability covenant in the case of condominiums) protects the affordability of the home for future income-qualified homebuyers, while providing each homeowner with a reasonable rate of return on their investment. All KulshanCLT homebuyers complete WCHFC-certified HomeBuyer Education classes provided by KulshanCLT. Upon completion, homebuyers are eligible for reduced rate mortgages and mortgage gap financing that KulshanCLT secures from public and private sources.
Today, with 96 homes in the trust, KulshanCLT has partnered with 116 homebuyers, including resales, to achieve the dream of homeownership, and provided education and training to hundreds more acquire the skills necessary to become first-time homeowners.
The work of KulshanCLT, growing a community everyone can afford, offers an affordable solution to the housing crisis and rising foreclosure rates for the low- and moderate-income households we serve. First-time and low- and moderate-income homebuyers - those most vulnerable to predatory and unethical lending - can look to KulshanCLT to provide an affordable, stable and safe way to move into responsible homeownership. Not one of the many families who have purchased their first home through KulshanCLT has foreclosed on a home loan, a track record we intend to build on. This success rate plays out nationally, as a April 2010 survey of CLTs revealed a foreclosure rate of less than one-tenth of 1%. We are eager to continue to pursue our vision in collaboration with others, including Key Bank, and build on our reputation as a well-respected, innovative and entrepreneurial organization with strong local and regional support and recognition, and tremendous potential.
KulshanCLT Chronology
1999
Bill Sterling, Paul Schissler and Greg Winter decide to create a local CLT
Kulshan Community Land Trust incorporated as a WA nonprofit;
Using donated office space and volunteer time, KulshanCLT is launched;
KulshanCLT becomes one of 180 community land trusts throughout the United States;
2000
KulshanCLT designated a 501(c)(3) federally tax exempt nonprofit, May;
25 founding members caucus for first annual member meeting, November;
Paul appointed volunteer executive director by co-founding trustees, October;
www.kclt.org website registered;
2001
Start-up funds of $32,000 committed by five businesses and foundations (see detail list, page 14) (Note: in 2001, grants came in from PeaceHealth/St. Joe’s, KeyBank Foundation, Whatcom Community Foundation, Fannie Mae Foundation and WAMU Foundation);
KulshanCLT earns grant of $210,000 from Federal Home Loan Bank of Seattle for mortgage gap financing, December;
Hosted first Affordable HomeOwnership Fair, June;
Erika Malone hired as HomeOwnership Coordinator, August;
Opened a storefront office downtown in the Bellingham Hardware Building;
2002
First KulshanCLT homes purchased in July 31, and had seven new homeowners by year end;
Hired VISTA employee Ben Ernst, to be first outreach and membership coordinator, July;
Published first member newsletter, “Kulshan Community,” Fall;
First Bellingham Traverse team finishes in 3 hours, 9 minutes and raises funds to support KulshanCLT’s new HomeBuyer Education program, September;
2003
KulshanCLT board and staff worked with Common Ground, a Seattle-based technical assistance provider, and completes its first five-year strategic plan, January;
Janis Fredlund becomes 10th homeowner in April, and there are 21 homes in the trust by year end;
Speaker’s Series inaugurated with Bill Kreager’s “Honey I Shrunk the Lots!” slide show, October;
WA State Housing Finance Commission approves below rate House Key mortgages on CLT properties, March;
$500,000 grant awarded from WA State Housing Trust Fund for mortgage gap financing
Mary Jayne Walker takes over as outreach and membership coordinator;
Fourteen new homeowners join KulshanCLT in 2003, bringing the total to 21;
2004
KulshanCLT membership tops 200, and we complete our first successful major donor and business partner campaign, raising well over $80,000 in new local private funding;
Create Shared Appreciation Fund with first $5,000 gift;
28 homes in the trust at the end of 2004;
VISTA intern Sylvia Hales and outreach director Andy Wickstrand join the staff;
City of Bellingham encourages demonstration project in Happy Valley, later named Matthei Place, to create 14 new permanently affordable homes;
2005
Nine homeowners purchase condominiums through KulshanCLT;
Speaker Series continues with Dan Burden’s “Walking Our Talk” and Gordon Price’s “Growing/Livable Vancouver”;
First resale, with homeowner netting $8,000 in equity after two years of ownership;
First collaboration with Habitat for Humanity, with a Habitat-built sold into the trust;
Brought a total of 14 homes into the trust, bringing the total to 42 by year end;
2006
Acquired Kulshan Commons, a site for new mixed-income homes in Ferndale;
Begun site development at Matthei Place, KulshanCLT’s first new construction project;
Inaugurated a new “Generosity and Gratitude” speakers series and continued our “Growing a Livable Community” speakers series with award-winning journalist and author Ray Suarez; in September;
Hosted a fact-finding trip to Boulder, Colorado, and Burlington, Vermont to learn how communities similar to ours have worked together to create solutions and housing incentives;
Facilitated two discount home sales from sellers who intentionally chose to sell below market value so an income-qualified family could purchase the home through KulshanCLT at a price they could afford.
