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CLT Buyer
Selection
Community
Outreach & Marketing • Selection
Committee • Eligibility
Criteria • Selection
Criteria
This policy
is intended to guide the development and implementation of both program
and project-specific community outreach and homebuyer selection
procedures
administered by the City of Lakes Community Land Trust (CLCLT). This policy
shall be reviewed on a regular basis by the CLCLT Board of Directors for
effectiveness in guiding the organization in the pursuit of its mission.
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Community Outreach and Marketing
CLCLT is an Equal Housing Opportunity provider and conducts business in accordance
with the Federal Fair Housing Law. When the CLCLT has a home/housing unit
available for sale/resale it will use the following process:
- Mail informational flyers to
organizations and persons on the contact waiting list.
- Advertise home for sale on the
CLCLT web site (www.clclt.org).
- Advertise home for sale in local
newspapers, including but not only limited to, the Minneapolis Star
Tribune.
- Put a FOR SALE sign on the property.
- If needed, list the home through
the Multiple Listing Service, neighborhood newspapers, community service
announcements, etc.
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Selection Committee
On behalf of the CLCLT Board of Directors, the committee responsible for
selecting homebuyers will consist of at least one staff person and
the CLCLT Executive Committee. At least one committee member must also
be a CLCLT Leaseholder. Additional committee members could be added
to the committee at their discretion or per Partnership Agreement (if
applicable). Recommendations for action from this committee will go
to the full CLCLT Board of Directors for final approval.
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Eligibility
Criteria
The following criteria reflect the CLCLT's homebuyer education
goals
- Age must be 18 in Minnesota
to qualify for a mortgage.
- Citizen of United States or registered alien.
- Home
Ownership Education - Must receive certification prior to
final loan closing through the Home ownership Center or an equivalent
homebuyer
education curriculum.
- CLT
Orientation - Must have either attended CLT Orientation
and/or have received CLCLT one-on-one CLT education/counseling
prior to
selection process.
-
Maximum
Income - Must
be below 80% of the area median income (AMI)
as defined by the U.S. Department of HUD, demonstrate
sense of ownership of financial obligations and history of responsible
effort to meet
them. In the case where funding sources mandate that
lower income households need to be served (i.e.: less than 50%
AMI) or certain
populations be served, those regulations will prevail.
With Board
of Director approval, there are exceptions to the maximum
income eligibility criteria:
A. Households
at any income level can place land they own in the CLCLT.
B. Households
at any income level can undertake a sale-leaseback arrangement.
C.Households
that agree to the CLCLT resale restrictions
will be considered (a buyer-initiated program).
- Minimum Income - A household must
have sufficient income to support housing costs. The household must be pre-qualified
for a mortgage
as evidenced by a letter from a lending institution.
- Affordability - In general,
this means the cost of housing does not exceed 30% (PITI) of the
householdís monthly income.
- Assets - A review of household assets should clearly indicate a
limited ability to compete successfully in the conventional housing
market. Liquid assets (savings, checking, money market, cash) shall
not exceed 20% of homebuyers CLCLT mortgaged amount.
- Property Eligibility - In some cases (i.e.: Buyer Initiated Program),
some qualified homebuyers will find and select homes to be placed
in the CLCLT. Selected homes will need to qualify in accordance with
the CLCLT Property Eligibility Policy.
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Selection Criteria
The following selection criteria will weigh into the selection process
and will be considered in those instances when there are two or
more households expressing an interest in a particular home and
meet the Eligibility Thresholds listed above. Points will be given
for the listed Selection Criteria. The highest points for any project
will be selected. In the event of a point tie, a lottery will be
held.
- Appropriate Size - Five
(5) points will be awarded if Unit Size (# of bedrooms) matches
current Household Size (number of people
currently in household):
| Unit Size |
Household
Size |
| 1 |
1-2 persons |
| 2 |
2-3 persons |
| 3 |
3-5 persons |
| 4 |
4-7 persons |
| 5 |
5-8 persons |
- Income -points will be
awarded if household income is less than 60% of area median income
(AMI).
- First Time Homebuyers
- points will be awarded if homebuyer is a first time homebuyer.
A first time homebuyer is defined as someone
who has not owned a home in the last three years.
- Missed CLT Selection
Process Opportunities - points will be awarded for each selection
process that they were not chosen (through
selection process or lottery). For example, if a potential
homebuyer was included in 3 previous selection criteria processes,
and not
selected, they would receive additional points.
- Partnership Requirements - In the event of a partnership CLT home
(partnership organization may also have selection criteria that does
not impair fair housing laws), points will be awarded per the Partnership
Agreement.
The CLCLT Homebuyer Selection Committee will conduct a lottery in
the event there is a point tie and all else held equal between
applicants.
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