Durham Community Land Trustees
One of our favorite clients is the Durham Community Land Trustees (DCLT). For the past twenty years, they have been building homes that are affordable to the majority of Durham residents. That's no small feat, given that their target area is neighborhoods near Duke University, where real estate prices have increased faster than prices in other areas of Durham. I think it's worth it to revisit why the land trust model has a place in our market, especially given the number of first time home buyers that are now losing their homes in this tough real estate climate.
DCLT's goal is to provide permanently affordable home buying opportunities to first time home buyers. However, their approach encompasses more than just providing a home. They educate and support buyers, and eventually provide a path for buyers to move up to a market price home.
DCLT home buyers attend home buyer education courses before purchasing their home. These courses prepare buyers, letting them know what to expect from their real estate agent, lender, and others involved in the process. They also receive opportunities to work with counselors to create a monthly budget, handle credit issues, and understand how much they can afford to spend on a home.
Perhaps the most important part of the DCLT mission is protecting buyers from predatory loans. Over the past year, we have watched the dream of homeownership turn into a nightmare for many first time home buyers. Because they didn't have the education and support they needed when buying a home, they ended up with adjustable rate mortgages, and other loans with high interest rates and fees. DCLT works closely with a group of preferred lenders, and even has a loan pool offered through the state of North Carolina. These loans are low interest (and in some cases no interest), and are designed to ensure that buyers are getting a leg up with an affordable mortgage. Buyers have the peace of mind that comes with a quality home, and a chance to save money that might have otherwise gone to pay a larger mortgage.
DCLT has also committed to energy efficient and environmentally friendly building practices. Many buyers are never told about the hidden costs of homeownership, such as higher utility bills and home maintenance costs. These items can add hundreds of dollars to the cost of owning a home over the course of a year. DCLT uses low maintenance materials and energy efficient standards wherever possible and even offers an energy use guarantee - heating and cooling bills can be as low as $26 a month. Upgraded insulation, solar water heaters, and semi-permeable driveway designs are all examples of methods used by DCLT to create homes that are good for homeowners and good for the environment.
While DCLT provides opportunities for home buyers, it also wants to provide stability for the neighborhood. More homeowners means better looking and better maintained homes, more involvement in neighborhood associations, and more stable home values. Like many other community builders, DCLT asks buyers to give something back in return for the chance to buy a quality home at a low price. To keep their home affordable, buyers agree to pass along some of their equity to the next buyer, keeping the home affordable over time.
As we recover from the hangover of the easy money mortgage market, it's a good idea to get back to the basics. The dream of homeownership is founded on the security of having a place for family and a chance to improve your finances by saving money. Organizations like Durham Community Land Trustees offer buyers the chance to take part in this dream.
Take a look at current DCLT homes for sale:
http://www.907exum.com/
http://www.1513chapelhillroad.com/
Coming Soon - Cameron Place - a neighborhood of new, energy efficient homes near Duke University
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