SWMHP Partnership Community Land Trust

What is SWMHP Partnership Community Land Trust?

SWMHP Partnership Community Land Trust is a shared-appreciation loan for homebuyers in Blue Earth; Nicollet; Brown; Watonwan; Cottonwood; Jackson County, Minnesota, administered by Southwest Minnesota Housing Partnership (SWMHP).

• The Partnership Community Land Trust (PCLT), operated by Southwest Minnesota Housing Partnership, is a shared-equity homeownership program across southwest Minnesota. SWMHP builds or acquires a home and sells only the structure to an income-qualified buyer (generally at/below 60% AMI) while the trust retains the land under a 99-year ground lease, lowering the mortgage, down payment, and closing costs. A resale formula preserves long-term affordability.
• Removes land cost from mortgage.
• Reduced down payment and closing costs.
• Long-term affordability via 99-year ground lease.
• Pairs with DPA.
• Funding comes from Minnesota Housing, Greater Minnesota Housing Fund, Housing Partnership Network NMTC, local/philanthropic partners.

Do you have to pay it back?

SWMHP Partnership Community Land Trust is a shared-appreciation loan and is repaid under the terms set by Southwest Minnesota Housing Partnership (SWMHP).

• Repayment is triggered by Resale formula on sale; land remains owned by the trust and leased via 99-year ground lease.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

SWMHP Partnership Community Land Trust is open to buyers who will live in the home as their primary residence.

What are the income limits?

SWMHP Partnership Community Land Trust limits household income to 60% of the area median income, which varies by county and household size.

• Generally at/below 60% AMI (approx $43,200 for 2-person, $54,000 for 4-person, subject to change).
• 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?

SWMHP Partnership Community Land Trust can be used for Single Family.

• New construction is eligible.

Where does it apply?

SWMHP Partnership Community Land Trust serves buyers purchasing in Blue Earth; Nicollet; Brown; Watonwan; Cottonwood; Jackson County, Minnesota.

How do you apply?

Applications for SWMHP Partnership Community Land Trust go through Southwest Minnesota Housing Partnership (SWMHP), 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 Realizing the American Dream homebuyer education through SWMHP.

2. 2

   Contact Southwest Minnesota Housing Partnership (SWMHP) to reserve funds

   Funds are reserved through Application-based; contact SWMHP for available CLT homes, 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.