Community Elders Program
An Alternative to a Reverse Mortgage and/or Moving.
Research shows that most people prefer to age in their homes and communities, so they can maintain their friendships and social support network. Sometimes, life events and the steady march of time make that challenging and costly. Homes and Hope Community Land Trust understands this dilemma and has developed a program that will work for many folks to be able to age in place. There are a few variations to the execution, but basically, the homeowners’ existing equity is documented along with the needed changes and repairs to make the home safe and comfortable. Then, HHCLT buys the land in exchange for the repair and improvement costs. The “affordable price” is documented, and the home becomes permanently affordable using the HHCLT resale formula of 2% simple appreciation per year and a 99-year land lease. As with all HHCLT homes, the lease is inheritable and transferrable, if the heirs wish to continue living there.
Variation #1: The home’s state of safety and disrepair is great, and impacts most of the systems. In this case, a new home is built for the original owner, and additional homes are built for other families to purchase, which covers the costs for building all of the homes.
Variation #2: The home needs some repairs, but there is an existing mortgage and no funds to make the repairs. In this case, HHCLT will determine if they can add a few homes to the property to both payoff the existing mortgage and make the needed repairs. For both of these first variations, site infrastructure and zoning dictate the number of homes to be added.
Variation #3: The home needs some repairs, and there is existing debt, but the home is well-suited to being converted to a duplex or house plus auxiliary dwelling unit (ADU). The rent from the ADU covers the debt payment and the repairs costs. The rental unit is income-restricted, and HHCLT verifies the tenants’ income annually.
Variation #4: As in #3, the home needs some repairs and there is some existing debt, but the house is well-suited to house-sharing. The roommate rent covers the debt, repairs and some “profit.” There is also a variation on this model that the “roommate” is doing chores and assisting with the household in exchange for reduced room costs. There are some organizations in Washington that have a formal, structured House-Sharing Program, so HHCLT would need to partner with them to exercise this option.
Like with a reverse mortgage application, HHCLT requires that your heirs be notified of the capped appreciation and the details of the repairs. We also require that you meet with a third-party housing counselor and that you attorney review the contract and leasehold. This is an income-restricted program intended to serve especially those people who are at or below 60% of median income, but we may be able to help homeowners who are making as much as 80% of area median income, depending on the project scope.
NOTE: If your home needs only a few repairs, you may qualify for a Habitat for Humanity Home Repair Project. Contact your local affiliate; Habitat Snohomish is 425.258.6289 info@habitatsnohomish.org