Investment will preserve housing affordability through shared equity strategies
Thanks to contributions from Citi and JP Morgan Chase, NPHS’ Community Investment Trust received $500,000 to support shared equity strategies that preserve housing affordability and create wealth for low income homebuyers. The Community Investment Trust is NPHS’ CDFI investment vehicle that finances its affordable housing developments and community lending programs. The $500,000 capital infusion will be leveraged to develop and preserve affordable homeownership through NPHS’ Community Land Trust, a shared equity strategy.
Community Land Trusts and other shared equity and appreciation strategies have become increasingly important to NPHS as means to develop affordable homeownership, repurpose vacant properties, extend the long-term impact of public and private sector investment and to create intergenerational wealth among low-income households. Shared equity and appreciation models enable NPHS and its partners to retain or recapture the benefits of public and private subsidies for future low-income households, enabling the initial investment to serve more families over longer periods of time.
NPHS created its Community Land Trust (CLT)as part of a holistic framework to develop, preserve and protect affordable homeownership in neighborhoods throughout the Inland Empire. Homeowners build wealth by paying down the principal balance of their mortgage and through the share of home price appreciation allocated to them under a ground lease. By acquiring and transferring land to the CLT, NPHS maintains ownership and controls housing costs by permanently limiting land costs and “locking in” subsidies so that they benefit multiple generations of homebuyers each time the home is sold. Through the NPHS CLT, access to homeownership for people who are otherwise priced out of the housing market becomes a reality.