City of Lakes Community Land Trust – Homebuyer Initiated Program (HIP)
The CLCLT Homebuyer Initiated Program (HIP) helps families and individuals purchase and fix-up homes that are for sale in Minneapolis. HIP puts homeownership within the reach of low- to moderate-income households with the help of two grants:
The HIP Affordability Investment Grant gives participating households more purchasing power by reducing the amount of mortgage financing needed to purchase a home for sale on the open market in Minneapolis. Affordability grants will range from $25,000 to $60,000 depending on household income and size.
The HIP Rehab Grant provides up to $25,000 for participating households to use to fix up homes purchased through HIP. Rehab funds can be used to address any mechanical, structural, and safety issues that a home has at the time of purchase. The rehab grant helps ensure that an expensive repair will not jeopardize the financial stability of the new homeowner in the first few years of homeownership. Examples of the eligible rehab include roof replacement, plumbing and electrical updates, lead abatement, storm window and door replacement, siding repair, etc.
Homes purchased through HIP become CLCLT homes – that is, the homes will be owned by the CLT homeowners, the land is held "in trust" so that affordable housing will be available to future generations of low-to-moderate income homebuyers. The CLCLT and HIP buyers enter into the long-term agreement to preserve affordability through the resale formula.
The benefits of HIP include:
- HIP puts homeownership within the reach of low-to-moderate income homebuyers.
- HIP gives homebuyers the opportunity to purchase homes available on the open real estate market.
- HIP buyers are able to choose the homes and neighborhoods that meet their needs.
- Free home inspection for homes purchased through program.
- HIP Rehab is coordinated and overseen by the CLCLT’s rehab advisor.
- HIP Rehab addresses any deferred maintenance on the home at the time of purchase.
- HIP helps households earn equity through homeownership that is not available in the rental market.
- HIP homes will be affordable to future CLT homebuyers.
For more information
Contact the City of Lakes Community Land Trust at 612-721-7556 ext 17 or 18.