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West Hennepin <br />FORDABLE <br />0USIN6 <br />LAND TRUSl <br />I'hc West Hennepin AITordable Housing Land rrust (*’WHAHI/r*) was created <br />as a non-prulit eorporation in May of 2001 to provide pemianentl\ affordable lumie <br />ownership opportunities for low- to moderate-income people in suburban I lennepin <br />County. I'or a one-time inve.stment of approximately $70,000 per property. \VI lAHL T <br />provides a permanently alTordable home. Wl lAI II. f maximi/es the effeeti\eness of the <br />public inve.stment, while providing the benefits ol home-ownership to households that are <br />otherwise unable to buy a house. It partners public and private funds to address the need <br />for alTordable housing in suburban I lennepin C'ounty. <br />Miised on the eommunity land trust model. WHAIIL T acquires single family <br />properties, retains ownership of the land, and sells the homes on the land to qualifying <br />families. The land is leased to homeL>wners through a ‘)‘>-year renewable ground lease <br />that atTords the owner mo.st of the .same rights as an> other property *»wner. I'he renu>val <br />of the market value of the land from the mortgage equation provides initial affordability. <br />Permanent affordability is obtained through; (I) a pricing formula that pro\ ides the <br />owner with a fair amount of equity while ensuring that the resale price of the home is <br />affordable and (2) ii tesale restriction that requires the homeowner to .sell the house to <br />either another low- to moderate-income household or t*> Wl lAI II. f. <br />Wl lAI II. I currently owns homes in Minnetonka and Kichilcld. but is available to <br />ser\ e all of suburban I lennepin County. It provides homes to first-time homebuyers <br />earning 8()“'o or less of area median income. It generally purchases existing homes for no <br />more than $l<)0.()()0 and sells them t»i qualifying households for no more than $120,000. <br />H> contrast the median sales price for a home in the I win Cities area in July 2(M)2 was <br />$l ‘)0.()00; the median sales price for a home in Minnetonka in 2001 was $246,000. <br />Wl lAI II. I was created in response to efforts b\ the City of Minnetonka to <br />tlc\ cl«)p new methoils and t»>ols locallx that would help increase the number of affordable <br />homes available and that would make etTicient use of financial resources for affordable <br />housing. WHAIII. I has received financial and other support frenn: the I'amilx Housing <br />f und, l annie Mae Minnesota Partnership Otfice. Hennepin County, the McKnight <br />l-ouiulaiion the Metrt>poliian Council, the IT C. (iambic and P. W. Skogmo lund of the <br />Minneapolis foundation. Minne.sota Housing finance Agency, the ('ity of Minnetonka, <br />the City of Richlield. Local Initiatives Suppi>rt Corpi»ration. St. Luke Presbyterian <br />Church (Minnetonka) and individual donors. <br />V\i>l llciiiicpin MItUilahIc lltfUMnp I anJ IriiM <br />^101 Ihimscn \\c . Sic ’(Hi. Minnetonka. M\ <br />Icfcpluuu! *-*52 lOl ?07l I-iiuul Wll.MIl 1 inn ri ca>iii <br />a <br />}