How Homes Are Created

There are three ways our homes are created:

  • The Trust buys the land and builds the house, we keep the ownership of the land and the owner goes to the bank and gets a mortgage for the house. The land price is taken out of the cost of the mortgage, so, for example, now a $225,000 home only costs $125,000
  • The second way is the Trust buys a house on the open market say at $225,000. We keep the land and the owner goes to the bank for a mortgage on the house
  • The third way is the Trust buys, builds or restores the property, and rents it to eligible families. Property tax and sewer fees are paid on all the properties the Housing Trust sponsors. Where the resident owns the house the resident is responsible for all the taxes and fees

Where the Housing Trust owns the property and rents it to a family, the Trust pays the tax and fees directly to the Town. Owners of Trust homes pay taxes based on the Town assessment of their home just like any other property owner. All homeowners qualify for mortgages the same way as everyone else, they go to the bank and get a mortgage. The local banks now have 20 years of experience giving home loans under this arrangement. New homes brought to the market consistently have resulted in more applicants than could be served, and the turnover (resale) rate is very low.

When the owner of a Trust home wants to sell they get to keep a portion of the equity, the balance of the equity goes to pay down the cost of the house to the next person.

The Litchfield Housing Trust has won federal and state awards for its work.