Building a Legacy: Twin Cities Habitat's Long-Term Affordability Model

When you purchase a home with Twin Cities Habitat for Humanity, you're not just buying a house; you're investing in a model that ensures homes remain affordable for future generations of homeowners. 

This commitment to long-term affordability (LTA) helps counteract the effects of rising housing costs and a fluctuating housing market. Essentially, you're helping your neighbors become homeowners and supporting a sustainable community.

What is Long-Term Affordability (LTA)?

Long-term affordability (LTA) refers to homeownership models designed to keep housing affordable for low- and moderate-income households over time. These models often include restrictions on home sale terms to maintain affordability. LTA models can include:

• Shared Equity Homeownership

• Community Land Trusts (CLTs)

• Inclusionary Housing Policies

• Limited-Equity Cooperatives  

• Deed-Restricted Housing Programs

Twin Cities Habitat’s LTA Model

Twin Cities Habitat for Humanity uses an LTA model focused on lasting affordability. This approach includes:

• Revised Wealth-Building Model for Homeowners: We've created a system to help homeowners build wealth while preserving home affordability. This allows homeowners to improve their financial situation without pricing others out of the market.

• Deed Restrictions (Affordability Agreements): Instead of traditional mortgages, we use deed restrictions. These are legal agreements that ensure the home remains affordable for future buyers when the current owners sell.

• Revised Subsidy Forgiveness Model: We've adjusted how we handle government assistance (called subsidies) for homeowners. Our plan ensures these subsidies continue to support affordability in the long term.

• Involvement with Community Land Trusts (CLTs): We collaborate closely with Community Land Trusts (CLTs). CLTs own the land where homes are built and lease it to homeowners. This lowers the overall home cost and helps maintain affordability over time.

How It Impacts You

For homebuyers, the long-term affordability model offers several benefits:

• Affordable Purchase Prices: Homes are sold at prices affordable for low- and moderate-income families.

• Stable Monthly Payments: You benefit from predictable and manageable monthly mortgage payments.

• Wealth-Building Opportunities: Even with affordability restrictions, homeowners can still build equity and financial stability.

• Community Investment: Buying through this model means investing in the community, helping ensure more families can achieve homeownership in the future.

How It Benefits the Community

The LTA model allows Twin Cities Habitat to increase its affordable housing inventory over time. By making homeownership accessible, more families can leave the rental market and become homeowners. 

With each home purchased, Twin Cities Habitat can continue to offer more affordable homes to other families. A larger supply of affordable homes creates more opportunities for families to move into them.

Join Us in Building a Better Future

By participating in Twin Cities Habitat’s Homeownership Program, you're securing a home for yourself and  ensuring future generations have the same opportunity. Your investment helps maintain affordable housing, builds stronger communities, and supports more families in achieving the dream of homeownership.