HomeBuyer Driven Program

Kulshan CLT’s HomeBuyer Driven Program (HBDP) can help households of modest means purchase existing homes by using the community land trust approach.

The HBDP lowers the cost of housing by separating ownership of the house from ownership of the land on which the house sits. In this way, it combines community ownership of land with private ownership of homes. The downpayment assistance offered by Kulshan CLT closes the gap between high housing prices and lower family earnings.

Kulshan CLT helps you to qualify for a mortgage and other downpayment assistance, and then brings an additional $30,000 or more at closing to cover the gap between the cost of a starter home and the price your household can afford in mortgage plus downpayment.

When a home is bought through the HBDP, the homebuyer takes title to the house and all the improvements on the land, while Kulshan CLT retains title to the land. Residents then lease the land from Kulshan CLT for ninety-nine years, with an option to renew for another ninety-nine years.

Kulshan CLT homeowners are free to resell their homes whenever they want to but the price at which they can sell their home is limited. There is a resale formula in the ground lease agreement, which determines the maximum resale price of the house. Residents gain some equity, but do not price the home out of reach of other wage-earning residents.

At closing, you gain title to the improvements (your home) and enter into a 99-year, renewable, inheritable ground lease agreement. Kulshan CLT retains title to the land to ensure that the home remains affordable to low- and moderate-income households forever.

When or if you ever choose to sell your home, you will recapture your downpayment and a fair share of equity while keeping the resale price affordable for the next buyer without additional subsidy.