The NPHS CLT is integrated into NPHS’ holistic approach to real estate development with a focus on creating, preserving and protecting the affordability of housing developed by NPHS and its partners. This framework is comprised of three Social Instrument’s that are interconnected and work together to successfully create and preserve affordable homeownership while creating equity and wealth in low-income communities and households.
The first component of this framework is NPHS’ Affordable Housing Fund which finances the development of single-family homes for purchase, and the acquisition of multi-family rental housing.
The second is NPHS’ Community Lending Fund. As a Community Development Financial Institution (CDFI), NPHS’ Community Lending Fund provides down payment and closing costs loans to help low-income first-time homeowners afford the cost of homeownership, especially for the buyers purchasing CLT homes developed by NPHS. The fund also provides crucial support if homeowners face unexpected home repairs or financial problems.
The NPHS Community Land Trust is the third piece that serves to preserve and protect the affordability of the homes developed by NPHS and its community partners.
The NPHS CLT will help sustain the Inland Empire as a healthy, economically diverse community by providing permanently affordable homes for low-income households whose housing needs are not met by the traditional market. Specific functions of the NPHS CLT include:
- Acquiring land and properties for long-term affordable housing
- Developing land in an environmentally and socially responsible manner
- Constructing or renovating properties so that they are healthy, durable and energy efficient
- Educating and counseling homebuyers and rental tenants
- Stewarding what it creates for current and future generations
Preserving affordability permanently is at the core of the NPHS CLT. By acquiring land under a 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. Under the CLT model, NPHS enters into a long-term, renewable lease instead of a traditional sale with prospective homebuyers. The NPHS CLT allows for both collective control of the development and individual ownership. Homeowners get a deed for their home and an extended lease for the land and can purchase a CLT house at a relative discount, since the speculative value of the land is removed from the equation. When the homeowner sells, the family earns a portion of the increased property value. The remainder is kept by the CLT, preserving the affordability for future generations of low-income buyers.