Block Talk

Learning, resources and stories from the Housing and Community Strategy team

November 2024

A year ago, the Housing and Community Strategy team introduced our lasting affordability work to the network and shared new strategies we would be adopting to support the implementation of subsidy preservation models. Since then, over 120 Habitat affiliates have embraced various strategies to ensure homes remain accessible to future generations. From purchasing land and establishing trusts to engaging with policymakers, affiliates are actively promoting models that support lasting affordability.

Among the diverse approaches to achieving lasting affordability, three models stand out:

1. Long-term deed restrictions and affordable housing covenants.
2. Ground lease models.
3. Community land trusts.

These models help Habitat maintain a growing stock of homes that remain permanently within reach for families in need.

In the past year, the HCS team launched the Lasting Affordability Resource Center. This resource hub housed on the U.S. Knowledge Center of MyHabitat equips affiliates with essential tools to explore and implement lasting affordability models. Key offerings include:

• Introductory information on various affordability models.
• A self-assessment tool to determine the suitability of these models for your affiliate.
• A model selection guide to help choose the best approach.
• Templates, homeowner education materials and testimonials from both homeowners and affiliates.
• An interactive map showing affiliates already implementing lasting affordability strategies.

Since its launch in March, the resource center has attracted 165 affiliates, generating over 1,600 views of its tools and resources. Additionally, the HCS team hosts monthly virtual office hours, providing affiliates with opportunities to share experiences and seek technical assistance. A thriving Viva Engage Community also facilitates discussions and inquiries among affiliates.

One of the most impactful strategies for ensuring long-term affordability is the establishment of community land trusts. More than two dozen Habitat affiliates have invested in or developed their own CLTs, with many more in the pipeline to serve new generations of homeowners.

HFHI has identified three primary methods for establishing CLTs within the Habitat network:

• Partnership with local governments: Habitat affiliates collaborate with city or county agencies to acquire land. In this scenario, the land may remain under the city’s ownership or be transferred to a nonprofit trust, such as Habitat.
• Independent nonprofit creation: An affiliate can establish a separate nonprofit entity that maintains ownership of land and sells the development to income-qualified buyers.
• Collaboration with existing CLTs: Habitat may partner with an established community land trust, acting as the housing developer for the land trust entity.

In all cases, homeowners pay a monthly ground lease fee to the land trust. Habitat affiliates serve as primary stewards of the land, ensuring its sustainable management.

The benefits of affordability initiatives like CLTs are profound:

• Maintaining affordable housing: CLTs help keep housing prices within reach for low- and moderate-income families.
• Equity building: Homeowners can gain equity and benefit from property value appreciation.
• Preventing displacement: These models help protect residents from being displaced due to rising housing costs.
• Combatting gentrification: CLTs work to preserve the character and affordability of neighborhoods.

1. Home purchase: Habitat sells the home while retaining ownership of the land, with the homeowner paying a small monthly ground lease through a renewable lease agreement.
2. Homeownership benefits: The homeowner enjoys affordable mortgage payments and builds equity over time.
3. Resale: When the homeowner is ready to sell, they do so at an affordable price, benefiting from value appreciation while ensuring the home remains affordable for the next buyer.

In 2016, Frederick County Habitat for Humanity launched Maryland's first Habitat-funded community land trust. This initiative involves acquiring homes in disrepair and working with local governments to obtain properties for restoration. Recent efforts include the West All Saints Street Project, which transforms long-vacant properties in a historic district into 12 units of affordable housing.

This ambitious project, costing approximately $5.5 million, aims to revitalize a neighborhood historically tied to African American heritage. Rather than viewing these properties as blighted, Habitat for Humanity of Frederick County sees them as opportunities to build strength, stability and self-reliance for families that will thrive in the community.

By promoting lasting affordability through innovative strategies like CLTs, Habitat is committed to ensuring that homes remain accessible for generations to come.

Through the $600 million Environmental Justice Thriving Communities Grantmaking Program, nonprofit organizations representing disadvantaged communities can apply for a range of projects, including the development of healthy homes that are energy and water-use efficient and not subject to indoor air pollution. Community-based nonprofit organizations and other eligible organizations seeking subgrant funding will be able to apply for subgrants through three concurrent tiers offered by the grantmakers. Tier One will consist of grants of $150,000 for assessment, Tier Two will consist of grants of $250,000 for planning and Tier Three will consist of grants of $350,000 for project development.

The Environmental Protection Agency has selected 11 regional grantmakers to distribute funds. You can request free technical assistance by reaching out to the Technical Assistance Center for your region, to help design your program and prepare to apply. Grantmakers are expected to begin opening competitions and awarding subgrants by fall 2024.

Please send your ideas, successes, challenges and contributions for possible publication to Block Talk at nr@habitat.org.