Rondo CLT – Homebuyer Initiated Program (HIP)
HIP is an exciting homeownership program for low-to-moderate income households. Through HIP, participating households receive two grants, to help them purchase and rehab a home that is available on the open real estate market in St. Paul or Ramsey County. The grants are used to reduce the amount a household needs to purchase a home, and to ensure that the home purchased is structurally and mechanically safe and sound.
HIP Purchase Price Write Down Grant
HIP provides grant money to write down the purchase price of a house currently for sale in St. Paul or Ramsey County. The amount of the grant depends on need and eligibility of selected buyers. The HIP Purchase Price Write Down Grant stretches the amount of money a homebuyer can spend on a house.
HIP Rehab Grant
HIP provides grant funding for families and individuals to fix-up the houses they purchase through HIP. The grant is intended to ensure that HIP houses are decent, safe and mechanically and structurally sound. Rehab grant funds could be used for things like a new roof, a new furnace, and plumbing and electrical updates.
The HIP Rehab Grant takes care of major repair and maintenance issues that are present at the time of purchase. HIP homebuyers won't have to worry about a large repair in their first few years of homeownership.
How HIP Adds up
Families and individuals selected to participate in HIP work with a real estate agent to find a house for sale in St. Paul or Ramsey County. Once a house is found, Rondo CLT provides a free home inspection to see what types of repairs the house needs. If the HIP Rehab Grant can cover the cost of necessary repairs, the house is accepted for HIP. Necessary repairs are outlined in a scope of work. The home is then purchased. After closing, the homeowner works with Rondo CLT's rehab specialist to hire contractors to do the rehab work outlined in the scope of work. Rondo CLT pays for the rehab.
Homes purchased through HIP become Rondo Community Land Trust homes -- the homes are 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. HIP homebuyers enter into the Ground Lease agreement with Rondo CLT and agree to a limited equity resale formula.
HIP Property Criteria
Homes that are eligible for HIP must meet the HIP Property Criteria, either at the time of purchase, or through the HIP Rehab Grant. Rondo CLT provides free property inspections for HIP properties.
For more information, contact the Rondo Community Land Trust or call 651-221-9884.