City of Lakes Community Land Trust Homebuyer Initiated Program (HIP)

What is City of Lakes Community Land Trust Homebuyer Initiated Program (HIP)?

City of Lakes Community Land Trust Homebuyer Initiated Program (HIP) is a shared-appreciation loan for homebuyers in Minneapolis, Minnesota, administered by City of Lakes Community Land Trust (CLCLT).

• The City of Lakes Community Land Trust Homebuyer Initiated Program (HIP) is a buyer-driven, shared-equity program that lets income-eligible buyers select a home in Minneapolis and purchase it with a CLCLT affordability investment, plus a post-purchase deferred-maintenance/rehab investment (up to about $20,000 per buyer). The CLCLT retains ownership of the land via a 99-year ground lease, keeping the home permanently affordable. Households must earn less than 80% AMI at closing and use a CLT-friendly mortgage.
• Affordability investment increases buying power.
• Buyer chooses the home.
• Up to ~$20,000 post-purchase rehab assistance.
• Permanently affordable via CLT ground lease.
• Funding comes from City of Minneapolis, Hennepin County, Metropolitan Council (LHIA), and other public/philanthropic affordable-housing funds.

Do you have to pay it back?

City of Lakes Community Land Trust Homebuyer Initiated Program (HIP) is a shared-appreciation loan and is repaid under the terms set by City of Lakes Community Land Trust (CLCLT).

• Repayment is triggered by Community land trust shared-equity model: land owned by the trust under a 99-year ground lease; resale price restricted per the ground lease/resale formula rather than a conventional repayable DPA loan.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Lakes Community Land Trust Homebuyer Initiated Program (HIP) is open to buyers who will live in the home as their primary residence.

What are the income limits?

City of Lakes Community Land Trust Homebuyer Initiated Program (HIP) limits household income to 80% of the area median income, which varies by county and household size.

• Household income must be less than 80% AMI at the time of CLCLT HIP closing (Minneapolis-St. Paul-Bloomington MSA).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Lakes Community Land Trust Homebuyer Initiated Program (HIP) can be used for Single Family and Duplex.

Where does it apply?

City of Lakes Community Land Trust Homebuyer Initiated Program (HIP) serves buyers purchasing in Minneapolis, Minnesota.

• Targeted neighborhoods: City of Minneapolis (citywide).

How do you apply?

Applications for City of Lakes Community Land Trust Homebuyer Initiated Program (HIP) go through City of Lakes Community Land Trust (CLCLT), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through CLCLT pre-purchase education / orientation; attorney review of resale terms required prior to closing.

2. 2

   Contact City of Lakes Community Land Trust (CLCLT) to reserve funds

   Funds are reserved through Buyer completes CLCLT application, attends orientation, obtains mortgage pre-approval through a CLT-friendly lender, then enrolls in HIP, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.