The Chicago Suburb of Highland Park IL. North Shore, along Lake Michigan. Some pretty expensive homes - Basketball Great Michael Jordan lives here! The median home price in this tony suburb, just under $500,000!
Now, however, the village is getting acknowledged for making affordable housing available to certain employees who work in this exclusive suburb, but otherwise wouldn't be able to afford to live here. See an article by Mary Ellen Podmolik in last Friday's Chicago Tribune for more info.
Started roughly six years ago, the Highland Park Community Land Trust has renovated some local townhouses - including 30 at the Hyacinth Place Townhouse Development - and offered them for sale to qualifying community residents - including health care workers, teachers, and certain city employees.
The townhomes feature three bedrooms, 2 1/2 baths, two-car garages, geothermal heating, bamboo flooring, and a "green-friendly" wind turbine that provides common area electricity. Each of the units appraised for $365,000 each, but they were sold for between $165,000 and $239,000. Only one unit remains available for purchase.
How does the Village of Highland Park do this?
The trust retains ownership of the underlying land, and leases the land to the homeowners for $25 per month.
When an owner decides to move, he or she can either sell the home back to the land trust, or market it to another qualifying buyer. A special formula keeps the price of the home or townhouse affordable.
Under this model, the seller shares in appreciation of the property. If there is depreciation, the seller's losses are not as great as they purchased the home for a discounted price to begin with.
There are other breaks for homeowners as well - property taxes are lower, and the buyers are not required to obtain Private Mortgage Insurance on their property.
Continued interest in the program remains high, as homeowner advocacy groups keep trying to find ways for renters to instead own, without getting themselves in over their heads. It also may be just the jumpstart some need to acquire their home affordably, and quickly building home equity and appreciation.
The neighboring community of Evanston IL also has a similar Land Trust. There are two in the City of Chicago, including one serving the far-less-affluent Chicago Neighborhood of West Humboldt Park. Each have enjoyed success.
Please read our post today via BlogChicagoHomes.com.
DEAN & DEAN'S TEAM CHICAGO
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