Greeley-Weld Habitat for Humanity
Community Land Trust
Creating affordable homeownership opportunities for families
The Greeley-Weld Habitat Community Land Trust (GWH CLT) is a 501(c) (3) nonprofit organization founded in 2024. Its purpose is to bring permanent affordability to current and future homeowners in our community and further our mission of bringing safe, affordable homes to all.
Community land trusts (CLTs) are nonprofit organizations governed by a board of CLT residents, community residents, and public representatives. They provide lasting community assets and shared equity homeownership opportunities for families and communities.
How does Greeley-Weld Habitat for Humanity's
Community Land Trust work?
A typical community land trust for affordable housing works like this:
A family or individual purchases a house that sits on land owned by the community land trust.
The purchase price is more affordable because the homeowner only buys the house, not the land.
The homeowners lease the land from the community land trust on a long-term (a 99-year), renewable lease.
The homeowners agree to sell the home at a restricted price to keep it affordable in perpetuity. Still, they may be able to realize appreciation for the improvements they make while they live in the house.
Community Land Trust FAQs
How much can a CLT homeowner sell their home for? The CLT homeowner can sell their home for no more than the home's "Resale Formula Price," which is set out in the Ground Lease and agreed upon before the purchase. The Resale Formula Price equals the home's initial sales price plus a fixed increase of 2.5% of the initial price per year. The Resale Formula Price is designed to allow the homeowner to build some equity in the home through appreciation while ensuring the home is affordable to future limited-income buyers at resale.
Are there any restrictions on when a CLT homeowner can sell their home? No. There is no minimum occupancy period, and a CLT homeowner can decide to sell their home anytime. However, to see some gain on the home, homeowners should plan to stay in the home for a few years.
Who is eligible to buy a CLT home from an existing CLT homeowner at resale? Only individuals who are income-qualified by the Greeley-Weld Habitat for Humanity Land Trust are eligible to buy CLT homes at resale. This ensures that the home's long-term affordability protections continue to serve individuals and families who need them most.
Are CLT homes inheritable by the homeowner's heirs and beneficiaries? Yes. The homeowner can designate in their will a person(s) of their choosing to inherit the home and the Ground Lease. Anyone can inherit the home, but unless the inheritor is a child, spouse, or household member of the deceased, that new owner must be income-qualified in order to live in the home. If they are not income-qualified, they must sell the home back to GWHFH CLT for the Resale Formula Price. They are then entitled to keep the equity proceeds from the sale. This arrangement is designed to ensure that CLT homes are passed down to individuals and families who need affordable housing. However, the deceased's children, spouses, and household members are exempt from this requirement.
Are there fees associated with CLT homeownership? Yes. The homeowner pays GWHFH CLT a monthly fee of $125, which comprises the Ground Lease Fee and the Exterior Repair and Replacement Reserve Fee (also called the “Maintenance Fee”). Ground Lease Fee In exchange for the occupancy and use of the land beneath their home, the CLT homeowner pays GWHFH CLT a $75 monthly Ground Lease Fee, due on the first day of each month. GWHFH CLT may adjust the ground lease fee for inflation no more than once per year. Exterior Repair and Replacement Reserve Fee or the “Maintenance Fee” To preserve the physical condition of the significant exterior systems of the home, the CLT homeowner pays GWHFH CLT a Maintenance Fee of $50 each month. GWHFH CLT deposits Maintenance Fee payments into a reserve fund explicitly dedicated to that home. Maintenance Fee reserve funds may be used by the current homeowner or subsequent owners of the home to maintain and repair the roof, exterior siding, exterior paint and finishes, or similar features of the home. The Maintenance Fee reserve funds remain with the home until they are withdrawn for needed repairs or maintenance by a current or future homeowner. A homeowner cannot withdraw unused Maintenance Fee reserves when the home is sold. Maintenance Fee payments are due on the first day of each month and may be adjusted for inflation by GWHFH CLT no more than once yearly.
How are property taxes handled on the home? There is no property tax for a CLT owned by a nonprofit organization. House Bill 23-1184 created § 39-3-127.7, C.R.S., which allows for the exemption of real property owned by community land trusts and nonprofit affordable homeownership developers and held to develop affordable housing for qualifying homeowners.
How may CLT homes be used by homeowners? The homeowner must only use the home for residential and related purposes. The homeowner must use the home as their primary residence and homestead. This means living in the home for at least nine months out of the year. The homeowner may not use the home as a rental property. GWHFH CLT requires written permission to make exceptions to this policy under exceptional circumstances. The homeowner must act as a good neighbor and not create nuisances or unsafe conditions on the property. The homeowner must maintain the home and property in good, safe, and habitable condition and in compliance with all laws, regulations, and insurance requirements. The homeowner is responsible for the actions of any family, friends, or visitors in the home or on the land.
Who is responsible for home and property maintenance? The homeowner is responsible for maintaining and upkeep of the home and the land. As part of this responsibility, homeowners are required to ensure that all necessary maintenance, repairs, and replacements are performed on the home when needed. The homeowner is responsible for paying for these costs and for all utilities related to the home, including water, gas, and electricity.
Can homeowners make changes to the home and the land? Yes. The homeowner may make changes to the home, such as renovations, as long as the construction activities are performed professionally, and the changes are consistent with residential use. Certain types of construction activities require prior approval from GWHFH CLT: modifications that affect the footprint, square footage, or height of the home or that add new, permanent structures to the land (such as a garage or fence). The homeowner is responsible for the costs of any modifications they choose to make. Homeowners should be aware that because the home's resale price is set by formula in the Ground Lease, any capital improvements made to the home through renovations or additions will not raise the home's resale value.