Frequently Asked Questions (FAQs)

What is a Community Land Trust?

Community land trusts (CLTs) are nonprofit organizations that help make homes and other things (such as community gardens, commercial space, etc.) affordable and accessible. For most CLTs, affordable housing is the highest priority. There are over 250 CLT programs across the country, serving communities from small towns to large cities.

How is KulshanCLT different from other affordable homeownership programs?

KulshanCLT has operated by the ‘pay it forward’ model since our founding in 1999. In exchange for the down payment assistance and low purchase price that KulshanCLT provides, you agree to a fixed rate of equity appreciation (1.5% per year), passing on the good deal to the next eligible buyer. You are not responsible to repay the down payment assistance. You do pay down the principal of your mortgage while you occupy the home. At the same time, your home appreciates in equity by 1.5% each year. This allows KulshanCLT homeowners to build more equity than they would while renting, without pricing future families out of the home.

Who buys with KulshanCLT?

KulshanCLT homeowners include all types of people—families, grandparents, couples and single folks. They are grocery store clerks, mail carriers, school teachers, electricians, small business owners, restaurant workers, police officers, nonprofit employees and more.

The people who purchase homes through KulshanCLT’s program are done renting and ready to be homeowners, but are faced with a difficult housing market where household incomes haven’t kept up with rapidly rising home prices. KulshanCLT can help you buy a home in good condition near jobs and services, transportation options and quality schools.

How long is the wait?

Due to the rising costs of homes in our area and significant lack of inventory, we have more interested buyers than we have homes available. Unfortunately, buying a home through KulshanCLT is not a quick fix for permanent housing. The average wait is currently about two years.

What will my home loan be like?

With a CLT loan, there are no mortgage insurance payments, no balloon payments, no short terms, no fluctuating interest rates - only 30-year fixed-rate conventional mortgages.

We are very firm on serving families well and honestly. We steer homebuyers away from predatory lending practices and educate you on affordable options, providing educational support before and after you buy. As a buyer, you will be empowered to make informed decisions about your next big step.

What if my credit or debt is not the greatest?

Together with our preferred lenders, we can counsel you on how to get on track for homeownership. We have individuals walk through our doors who get into their new home anywhere from two months to several years later. Preparing to own a home is a process, and we’re here to make it doable, easier, and understandable.

What are my down payment options?

Typically our program requires that you put down a minimum cash contribution of 1% of your purchase price, or $2,500, whichever is greater. You are welcome to put down more cash if you are able.

Do I own the land?

Yes and no. KulshanCLT technically retains ownership of the land in order to ensure that the house remains affordable, but you become a member of KulshanCLT, so you, as part of KulshanCLT, own the land.

Let’s clarify this point:

The ground lease agreement is a key document that ties the land and the house together and is the most legally enforceable way to ensure that the program requirements are adhered to. This document brings together the pay-it-forward model, allowing the affordability of the home to be kept for the community, securing you modest equity when you sell, and keeping the purchase assistance with the home so it may be passed on to the next buyers.

Most importantly, you are responsible for the land and have the right to landscape and do all normal homeowner things. This is your place—you get to enjoy all the security, control, tax advantages, and equity building opportunities of homeownership.

Can I leave my home for my children?

Yes! The ground lease that secures your use of the land is for 99 years and is renewable and inheritable. This means that you could live in your home for as long as you live, bequeath the home and the right to use the land to your children, and they could do the same–on and on across generations.

What is the ground lease fee?

Homeowners pay only a nominal (typically $50) monthly ground lease fee to support us organizationally and continue our nonprofit’s work.

Does KulshanCLT share the equity I gain?

No. The 1.5% yearly equity is all yours.

In exchange for the funding we bring in to reduce the price of the home, you agree to sell your home at an affordable price (should you decide to sell), allowing another individual or family to achieve their dream of homeownership as well.

Homeowners build equity on their homes in two ways–your home appreciates in value by the resale formula amount, as laid out in the ground lease, and your mortgage principle is paid down.

Together, these two factors enable you to build equity throughout your period of homeownership.

• The KulshanCLT home appreciation rate is 1.5% annually, for every year you own your home.

• You can also receive capital improvement credits to the resale formula price for making specific property improvements.

• You can also receive capital replacement credits to the resale formula price for replacing specific significant home systems.

• If you damage the home or damage is caused by deferred maintenance, you may not be able to receive the full formula price when you’re ready to sell.

What happens when I'm ready to sell my home?

You will sell your home to an income-qualified homebuyer in our applicant pool. KulshanCLT will support you through the process and assist you in finding the right buyer for your home.

What if my income or household size changes after I move into my new home?

No problem. As long as you pay your mortgage, taxes, home insurance, and ground lease fee, your home is yours. Even if you make more or less money, add or lose household members, your home is yours. We understand that life brings all sorts of things. Changes to income or household size won’t affect your eligibility for your KulshanCLT home or your house payment once you’re in your new place.

Do I need to be living in Whatcom County to qualify?

No, as long as you plan to reside in your new home as your primary residence.

How do property taxes work with KulshanCLT homes?

Just like any homeowner, you pay 100% of the taxes on the home and land. Fortunately, property taxes are assessed based on the affordable resale value of the home, not its “market” value—meaning taxes are more affordable for CLT homeowners.

How and when are my property taxes paid?

For most financed homes, your property taxes will be paid to your lender each month when you make your mortgage payment. The lender collects and deposits your property taxes in a special escrow account, and pays the property taxes directly to the county on your behalf in April and October of each year. In most cases, our program requires that you pay your property taxes through your lender via an escrow account.

The only instances where you will pay the property taxes directly to the county yourself are after you pay off your mortgage in full.

Can non-citizens purchase a home through KulshanCLT?

We do not currently have a citizenship requirement at KulshanCLT. However, your lender may require proof of U.S. citizenship to qualify you for a loan.

Can I rent out the home?

The home must be your primary residence—you must live in the home at least nine months of the year. All household members should be included on your application to the program. After purchasing the home, you may choose to have roommates, but you must reside in the home as your primary residence.

What happens when I'm ready to sell my home?

You will sell your home to an income-qualified homebuyer from KulshanCLT's applicant pool. KulshanCLT will support you through the process and assist you in finding a buyer for your home.

When I want to sell, how is the price determined?

Your formula price begins with your home's base price, which can be found in either your Ground Lease/Notice of Ground Lease or your Covenant, if you purchased a condo. This amount grows by 1.5% annually. If your base price was $200,000 it would grow as follows:

After 1 year………. $203,000
After 5 years……… $215,456
After 10 years…… $232,108
After 15 years…… $250,046
After 20 years…….. $269,371
After 25 years………… $290,189
After 30 years………… $312,616
After 35 years………… $336,776
After 40 years………… $362,803

What is a Community Land Trust?

Community Land Trusts (CLTs) are nonprofit organizations that help make homes and other things (such as community gardens, commercial space, affordable housing) affordable and accessible. For most CLTs, affordable housing is the highest priority. There are over 250 CLT programs across the country, serving communities from small towns to large cities.

How can I partner with KulshanCLT to make a community everyone can afford?

• Sign up to receive our emails

• Like, follow, comment on, and share our social media

• Tell someone looking for housing about our program

• Become a member

What kinds of gifts support KulshanCLT?

• A one time donation (including gifts from donor advised funds and minimum distributions from retirement accounts)

• Recurring gifts

• Legacy gifts- property or percentages of an estate

• Stock and other non-cash donations

• Real Estate

• Automobiles

• In-kind products and services

How can my business get involved?

• Become an annual business partner

• Be a title sponsor for our events (Spring Fundraiser, Fall Annual Party and All-Member Meeting) - $10,000 per event

• Offer in-kind services

• Pay your employees to volunteer with us

Do you have one-time volunteer opportunities?

Right now, we have opportunities to help with events. In future we may have opportunities to be more involved with our properties.

Do you have ongoing volunteer opportunities?

Yes! Join our board! Our board meets monthly for 2 hours with the exception of August and December. Board members are critical volunteers who help guide the organization. No experience is necessary, and we encourage folks with diverse backgrounds to apply. Board members are asked to be ambassadors for the organization and support us by attending events and making introductions for us in the community. Although we encourage board members to make a financial contribution that is comfortable for them, we have no minimum give/get policy. All of our board members bring unique combinations of time, talent, and treasure. We simply ask that you contribute in a way that is meaningful to you and that you attend board meetings.

What does KulshanCLT staff do?

KulshanCLT employees steward, build, and sell homes for the community, and that takes people with specific knowledge. The majority of our work and what we spend our overhead supporting includes the following:

• Acquire land for development

• Propose, plan, research new developments

• Work with local architects, engineers, environmental engineers, and general contractors to build new homes

• Steward and support current homeowners and homes

• Interact with people applying for homes

• Walk applicants through the home buying process

• Educate and counsel potential applicants and current applicants

• Manage resales of homes within the trust

• Work with local lenders and banks to help our homebuyers get loans

• Work with local, state, and federal government officials to access applicable public funds to support our work

• Engage local and state policy makers to advocate for affordable housing

• Manage the complex financials of multiple LLCs, one for each building project

• Regularly report to local, state, and federal funders

• Interact with the community to secure individual donations

• Engage the business community to support our work

• Create engaging events to bolster community and fundraising

• Apply for private grants

• Maintain relationships with funders