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This proposal was approved 4-0 at the HRA meeting on April 7, 2022.
Homes Within Reach (HWR), a program of the West Hennepin Affordable Housing Land Trust, seeks to acquire 425 Jefferson Avenue for $1.00. HWR with oversee the rehabilitation of the house, place ground into a Land Trust and sell the structure to an income eligible homebuyer. The house will remain affordable for 99-year.
The Land Trust model supports work-force families providing essential services to the community and surrounding suburbs who typically cannot afford to purchase an entry-level home in Edina; such as custodians, teachers, municipal workers, retail staff, office personnel, food prep staff, customer service representatives and many more.
The Ground Lease allows the homeowner to secure long-term rights to the land. In addition, the homeowners have full use of the land and are responsible for the property and payment of all real estate taxes on the house and the parcel of land.
The homeowner may sell his/her home only to an income qualified buyer. The resale price is based on a formula, which (based on market conditions) allows the seller to recover the original cost of the house plus a modest profit. Therefore, assuming the house has retained or increased in value, the homeowner who sells his or her home will get all of their equity plus a percentage (35%) of the home’s appreciation (the amount that a home has increased in value since it was purchased).
As a result, Community Land Trust homes remain affordable for consecutive generations of homeowners, because the resale restriction ensures permanent affordability.
The City of Edina has been partnering with West Hennepin Affordable Housing Land Trust since 2007.
This proposal was approved 4-0 at the HRA meeting on April 7, 2022.
Homes Within Reach (HWR), a program of the West Hennepin Affordable Housing Land Trust, seeks to acquire 425 Jefferson Avenue for $1.00. HWR with oversee the rehabilitation of the house, place ground into a Land Trust and sell the structure to an income eligible homebuyer. The house will remain affordable for 99-year.
The Land Trust model supports work-force families providing essential services to the community and surrounding suburbs who typically cannot afford to purchase an entry-level home in Edina; such as custodians, teachers, municipal workers, retail staff, office personnel, food prep staff, customer service representatives and many more.
The Ground Lease allows the homeowner to secure long-term rights to the land. In addition, the homeowners have full use of the land and are responsible for the property and payment of all real estate taxes on the house and the parcel of land.
The homeowner may sell his/her home only to an income qualified buyer. The resale price is based on a formula, which (based on market conditions) allows the seller to recover the original cost of the house plus a modest profit. Therefore, assuming the house has retained or increased in value, the homeowner who sells his or her home will get all of their equity plus a percentage (35%) of the home’s appreciation (the amount that a home has increased in value since it was purchased).
As a result, Community Land Trust homes remain affordable for consecutive generations of homeowners, because the resale restriction ensures permanent affordability.
The City of Edina has been partnering with West Hennepin Affordable Housing Land Trust since 2007.
