City Issues Notice of Funding Availability for Community Land Trusts – Single Family Homeownership Projects
Monday Sep 14th, 2020
The Baltimore City Department of Housing & Community Development (DHCD) has issued a Notice of Funding Availability (NOFA) for Community Land Trusts (CLTs) – Single Family Homeownership. DHCD is making up to $2 million available for CLT initiatives through the Affordable Housing Trust Fund (AHTF).
Projects connected to this NOFA will support DHCD’s community development goals of meeting the demand for affordable housing and integrating land-trust homes as part of a broader mixed-income housing strategy. Earlier this year, DHCD and the AHTF Commission reached an agreement on a Spending Allocation Plan that allows for the production of affordable housing through CLT programs. CLTs are a nationally proven method used to create homeownership opportunities for households that earn 50 percent or less of the Area Median Income.
A land trust can be a valuable tool used to close the wealth and equity gap in cities with significant racial disparities. The City is seeking to promote equitable community development by directing funds to communities suffering from long-term and historical disinvestment.
Under the land trust model, a nonprofit organization owns the land and sells the home on the property to qualified buyers at below-market rate. The land trust’s ownership ensures that the home will remain affordable for 99 years. When a buyer purchases a home from the land trust, they agree to only sell the home to a low-income household and then split the equity with the land trust. This model also keeps homes in the hands of the community, which helps it to carry out its long-term vision and residents to build equity.
Qualified applicants can request up to $750,000 per project. The deadline is Friday, October 23, at 4 p.m. Learn more.