Karen Newman 

Trenton Gerads, Executive Director of the Cass Clay Community Land Trust (CLT) appeared before the Clay County Commission at their February 1 meeting to present information on the activities of that group as they relate to the county. He began, “We invest, whether that is time or dollars, into a home to help break down the purchase price to make it more affordable to an average or area-median-income household to be able to purchase a home.”

According to information Gerards presented to the commission, the CLT, founded locally in 2018 and employing two individuals, is a 501-c-3 nonprofit organization formed when communities struggle with:

·   vacant buildings,

·   rising housing costs and rents

· preservation of buildings and land

· overcrowding and displacement

· lack of community and open spaces

The CLT is a non-profit, democratically governed organization that obtains and retains land in trust on behalf of the community. CLTs work with resident groups, non-profit partners, and other organizations to preserve and enhance places of value to the community.

Gerard reported that the local CLT received a $200,000 grant from Minnesota Housing in 2021 to provide gap assistance. Those dollars will be utilized fully in 2022.

An additional $200,000 grant was awarded for rehabilitation and acquisition. Gerards said, “The reason for my being here today is to determine how we can use those dollars throughout Clay County. Currently we partner with Habitat for Humanity on two projects, one in south Moorhead and one in Dilworth that will be closing in the next 30 to 90 days.”

He added, “We are also working with a builder to develop two more affordable, owner-occupied homes in south Moorhead this year. We are trying to find a few more properties.” Gerards said that the CLT is in talks with the City of Dilworth to acquire a property where the existing home burned. CLT plans involve purchasing the lot, removing the burned-out building, and constructing a new home onsite.

Gerards explained that the CLT has been in discussion with the City of Moorhead about Maple Court and whether a partnership with them could assist in making some of the currently affordable rental units into affordable homeowner units in the future.

Gerards clarified, “You may not know that the land trust is not only interested in putting people into homes but in our stewardship program, which teaches our first-time home buyers to be responsible homeowners. Being a responsible homeowner is more than just making your mortgage payment on the first of the month, it is making sure you are maintaining your yard and maintaining your home.”

He elaborated, “We set up budgets with all of our families. We provide “how to” courses like simple maintenance tips and tricks. We work with them on upgrades they would like to make to their houses to make sure that it is worth their time and dollars. We work with helping them get connected into the community whether that is finding a doctor or becoming active in their school and community.”

Although Clay County numbers are not yet available, Gerards provided home prices specific to Moorhead, explaining that the average purchased price of homes on the marked increased by about $14,000 in the past year. According to information provided to the Clay County Commission:

The CLT buys or receives donated land or homes to build on or rehabilitate. By saving money in building or rehabilitating a home, the CLT can provide a one-time investment in the affordability of a home.

An income-qualified buyer purchases a CLT home for an affordable price with a private mortgage. In exchange for the opportunity to buy a home at an affordable price the homeowner agrees to take only 25% of the increased value of the home when they sell it instead of 100%. The CLT then passes that 75% increased value of the home and resells it at an affordable price again.

A 99-year ground lease ensures the CLT is able to buy back the home when the homeowner sells and allows for another new homeowner to purchase a home below market-rate.

The homeowner receives ongoing post-purchase education and support from the CLT as long as they own the CLT home.

Since the CLT does not cash in on the 75% increase value of the home at resale, this difference in market-rate is passed onto the next homeowner so they can buy at an affordable price.

He concluded, “We originally started as a Work Force program. “It is our belief that if we can get our families into home ownership and get them connected into the community, it’s that much tougher for them to leave.”