The impact of this project is to create the opportunity for 50 families earning 60% or below the area median income (AMI) to have the opportunity to become homeowners in Washington County.  This will be accomplished through the use of a Basic Local District, which is a limited-purpose local government entity under Title 17B of the Utah Code via HB65.

The purpose of these districts is primarily to focus on public infrastructure and services that can indirectly support residential areas. 

They can fund in whole or in part, the acquisition or construction of privately owned affordable housing, specifically single-family dwellings or townhomes reserved for households at or below 60% AMI.

Due to the extremely high cost to purchase a home in Washington County (average $560k), these families who are essential to a thriving community simply can’t afford to own a home where they work.

An approved Basic Local District in Utah is allowed to issue tax-exempt bonds to purchase land and install the necessary infrastructure to support an affordable housing development and use a property tax mil levy to pay the debt service on the bonds.  In theory, this sounds like a good tool, but the cost of land and infrastructure combined is too high for the 1.5 mils to cover, therefore, it is necessary for us to find other funding to purchase the land, thus this request.  The mil levy will cover the cost of the infrastructure.

To ensure affordability of these homes for this segment of the population into perpetuity, the land that would be purchased with this grant request of $4.6 million would be placed into the Southwest Utah Community Land Trust under a master development agreement dictating the term outline by the Basic Local District.  This land trust is already established and functioning with Fannie Mae’s approval for mortgage loans.

These homes would be modest starter homes, 3 to 4 bedroom, 2-bath homes averaging 1500’.

Advantages for the low-to-moderate income family include:

• • Their mortgage would only include the cost to build the home, average $2,000/month versus $3,200/month
  • They would not pay monthly mortgage insurance saving them anywhere from $250 to 300/month
  • The increased mil levy would only add $35/ month to their payment which is tax deductible on the buyer personal income tax return.
  • They would be required to enroll in homebuyer’s education and financial literacy counseling provided by the community land trust at no charge.
  • The community land trust would have the first option to purchase the home or provide a rescue loan should the homeowner fall upon hard times and need help.
  • The owner would still build equity through paying down their mortgage and a predetermined percentage of the appreciation over the time they own the home.  The average net worth of a renter is approximately $10,000 over time and the average net worth of a homeowner is over $300,000 over that same time frame.

The people that qualify to purchase these homes would not be able to become homeowners without this type of assistance.  The overall outcome is family, neighborhood and community stabilization.

The Southern Utah Community Land Trust exists to make homeownership possible for families who are priced out of today’s housing market—and to keep those homes affordable for generations to come.

In a region where housing costs continue to rise faster than wages, the Community Land Trust provides a proven, sustainable path to ownership for low- and moderate-income families who want to put down roots in the communities where they live and work.

How the Community Land Trust Works

The Community Land Trust separates the ownership of the land from the ownership of the home.

• The land is held permanently by the Community Land Trust.

• Families purchase and own their homes.

• This structure dramatically reduces the cost of homeownership while preserving long-term affordability.

By removing the cost of land from the purchase price, the Land Trust ensures homes remain accessible not just once—but forever.

A Path to Ownership—Without the Market Barriers

Homes offered through the Southern Utah Community Land Trust are designed to be modest, high-quality starter homes. Because buyers are not paying for the land:

• Monthly mortgage payments are significantly lower than market-rate housing

• Buyers avoid private mortgage insurance in most cases

• Homes are financeable through conventional mortgage products

• Families begin building equity from day one

The Land Trust model is approved by Fannie Mae, ensuring access to standard mortgage financing and long-term lender confidence.

Built-In Stability and Long-Term Support

The Community Land Trust is more than a housing program—it is a long-term partner for homeowners.

Every buyer is required to complete homebuyer education and financial literacy counseling at no cost, helping families prepare for sustainable ownership.

If a homeowner experiences financial hardship, the Land Trust provides:

• • Ongoing stewardship and guidance

  • First option to purchase the home if a sale becomes necessary

  • Access to support or rescue options when available

This safety net helps prevent foreclosure, displacement, and loss of hard-earned equity.

Building Equity—Responsibly

Homeowners in the Community Land Trust build wealth through:

• • Monthly mortgage pay-down

  • A shared portion of appreciation over time

This balance allows families to gain financial stability while ensuring the home remains affordable for the next qualifying buyer—protecting both individual opportunity and community benefit.

Why Community Land Trusts Matter

Without intervention, many essential workers will never have the opportunity to own a home in Southern Utah. The Community Land Trust model creates:

• • Family stability

  • Stronger neighborhoods

  • Reduced displacement

  • Long-term community resilience

The average renter’s net worth over time is a fraction of that of a homeowner. The Southern Utah Community Land Trust helps close that gap—responsibly and sustainably.

A Long-Term Commitment to Community

The Southern Utah Community Land Trust exists to serve families, protect affordability, and strengthen the region for generations to come.

This is not a temporary program.
It is a permanent solution.

LEARN HOW TO QUALIFY FOR A LAND TRUST HOME

PARTNER WITH THE COMMUNITY LAND TRUST

SUPPORT PERMANENTLY AFFORDABLE HOUSING IN SOUTHERN UTAH

Frequently Asked Questions

What is the Southern Utah Community Land Trust?

The Southern Utah Community Land Trust is a nonprofit organization that helps income-qualified families become homeowners by keeping the cost of housing permanently affordable. It does this by owning the land under the home, while families own the home itself.

How is this different from renting?

Homebuyers own their home, build equity, and have the security of long-term housing. Unlike renting, monthly payments go toward ownership—not a landlord’s profit—and homeowners gain financial stability over time.

Why doesn’t the buyer own the land?

Land is often the most expensive part of housing. By removing land from the purchase price, homes become far more affordable. The land is held by the Community Land Trust to ensure the home remains affordable for future families as well.

Can I sell my home later?

Yes. Homeowners can sell their home at any time. The Community Land Trust has the first option to purchase the home or help find another income-qualified buyer. This protects affordability while allowing homeowners to move when life changes.

Do homeowners still build equity?

Yes. Homeowners build equity in two ways:

• By paying down their mortgage

• By earning a predetermined share of the home’s appreciation

This approach balances wealth-building for the homeowner with long-term community affordability.

Who qualifies to buy a Community Land Trust home?

Buyers must meet income guidelines, generally at or below 60% of Area Median Income (AMI), and complete required homebuyer education. Specific eligibility criteria may vary by project.

Are these homes financed with real mortgages?

Yes. Homes are financed using standard mortgage products. The Community Land Trust model is approved by Fannie Mae, which allows buyers to use conventional mortgage loans from participating lenders.

What are the monthly costs like compared to the market?

Because buyers are not paying for the land:

• Monthly mortgage payments are significantly lower than market-rate housing

• Private mortgage insurance is often not required

• Costs are more predictable and sustainable

This makes ownership possible for families who would otherwise be priced out.

Is there homeowner education or support?

Yes. All buyers are required to complete homebuyer education and financial literacy counseling at no cost. After purchase, the Community Land Trust provides ongoing support and stewardship to help homeowners succeed.

What happens if a homeowner faces financial hardship?

The Community Land Trust serves as a long-term partner. If a homeowner experiences hardship, the Trust may provide guidance, support options, or assistance in selling the home responsibly to avoid foreclosure or displacement.

Does this affect property taxes?

Homeowners pay property taxes like any other homeowner. In some projects, a modest mill levy may support infrastructure, but this cost is typically small and often tax-deductible.

Are these homes “subsidized housing”?

These are ownership homes, not rental assistance or temporary subsidies. The Community Land Trust model is a proven, nationally recognized approach to creating stable, permanently affordable homeownership.

Why is permanent affordability important?

Without permanent affordability, public and philanthropic investments help only one family at a time. The Community Land Trust ensures that every home continues to serve future families—creating long-term community benefit from a single investment.

How can I learn more or get involved?

You can:

• Learn about upcoming homeownership opportunities

• Explore partnership or funding opportunities

• Support permanently affordable housing in Southern Utah

TOP PHOTO CREDIT: Jeffrey Eisen, pexels.com