Hom Realty Inc

About Rondo CLT

Rondo Community Land Trust (CLT) is a community-based affordable housing land trust working to create and preserve homeownership for low-to-moderate income households in Ramsey County, Minnesota.

Mission

To strengthen communities by providing permanently affordable, sustainable housing for families and individuals at or below 80% of the area median income; and, to promote the land trust model as a method of preserving affordable housing.

Vision

To provide high quality permanently affordable housing for low and moderate-income, multi-generational households by exploring various development methods, remaining flexible in our revitalization approaches, and working within priorities set by the community. Rondo CLT creatively meets housing needs while preserving the economic and cultural diversity of our community.

History

Rondo CLT is named after Rondo Avenue, a main commerce avenue for the African American community that was renamed Concordia Avenue during the construction of Interstate 94 in the late 1960s. Cutting through the old Rondo neighborhood, the construction dislocated many long-term residents. Based on the need for affordable housing in the area, in 1989 a resident task force initiated by the Summit-University Planning Council began exploring successful methods of preserving affordable housing that had been used around the country. The task force recommended the community land trust model as the most proven method of preserving affordable housing for future generations. Both the Summit-University and Lexington-Hamline Community Councils voted to endorse the creation of the first neighborhood-based community land trust in St. Paul. In 1993 Rondo CLT was incorporated as a publicly supported, tax-exempt organization to serve the neighborhoods of Summit-University and Lexington-Hamline. Recognizing the rising need for permanently affordable housing across the city, Rondo CLT’s Membership voted to expand Rondo CLT’s service area to include all of St. Paul in September 2002. On may 31st of this year, the membershp voted to expand its service area to Suburban Ramsey County.

What is a Community Land Trust?

A community land trust achieves permanently affordable homeownership opportunities for low to moderate-income households by separating the ownership of the house and the land. In the United States and Canada, there are currently over 100 active community land trusts that provide affordable homeownership to households in their area.

How Rondo CLT Keeps Homeownership Affordable

A community land trust achieves permanent, long-term housing affordability through the use of a Ground Lease. CLT homebuyers purchase only the house, and enter into a 99-year Ground Lease with Rondo CLT for the exclusive use of the land.

Rondo CLT’s Ground Lease states that when a CLT homeowner decides to sell their home, the house is sold to another low-to-moderate income household for the original purchase price plus 25% of any appreciation in the home’s value.

By limiting market appreciation, permanent affordability is ensured and initial subsidies invested in making the home affordable are spread across generations of low-to-moderate income homebuyers.

Most importantly, this affordable housing option gives households that could otherwise only afford to rent the opportunity to take advantage of all of the benefits of homeownership -- stability, security, tax benefits, and the opportunity to earn equity and appreciation in real estate that is not available through renting.

Visit www.rondoclt.org for more information