Sunday open house showcases land trust homes

An open house Sunday showcases three of the 16 houses in the Northwest Montana Community Land Trust and promises to help people learn more about this form of home ownership.

“These are all two- to three-bedroom homes, fully rehabbed,” said Marney McCleary, housing director for Community Action Partnership of Northwest Montana.

“None are older than 10 years. They all have brand-new appliances and all are in very family-friendly neighborhoods.”

Open houses run from noon to 4 p.m. at 713 Ashley Dr., 152 Barron Way and 156 Quincy Loop.

Developed over the last two years, Northwest Montana Community Land Trust was launched with $2.64 million in stimulus funding from the Neighborhood Stabilization Program.

The funding was awarded to buy, renovate, maintain and resell the land trust houses, all of which were empty, bank-owned foreclosures.

In all, $19 million went to various Montana communities through that round of the Neighborhood Stabilization Program.

The nonprofit land trust has its own board of directors. It was a joint effort between the city of Kalispell, which acted as grant sponsor, and Community Action Partnership.

The community land trust model is meant to provide affordable work-force housing in perpetuity. The model has existed for more than 30 years but is new to Kalispell.

In December, Kalispell accepted another $1.5 million grant through a third round of the Neighborhood Stabilization program that sent $5 million to Montana communities.

That money is expected to buy and rehab another six to eight houses for the Northwest Montana Community Land Trust.

Land trust houses are being offered for sale to people who earn up to 120 percent of the area median income, a figure adjusted annually. Some of the houses are reserved for people who earn less than 50 percent of area median income.

One land trust house has been sold with a family moving in over the next couple weeks. Another home is in the process of closing.

Through the land trust model, houses are sold separately from the land, which remains owned by the land trust and is leased to the home buyer for 99 years.

“If you live that long you can renew it another 99 years. And if you die, it is inheritable to heirs,” said Doug Rauthe, executive director of Community Action Partnership of Northwest Montana.

Selling the houses separately from the land helps keep them affordable.

So do resale price restrictions that let sellers recoup a “fair amount” of their equity as the houses increase in value over time.

The Northwest Montana Community Land Trust is launching during a time of depressed home values.

“Right now, [the houses are] very competitive. In a few years after things hopefully stabilize they will be even more attractive,” McCleary said.

“This is a fantastic opportunity for people to gain a tremendous amount of equity in this market. These are lovely homes.”

For more information about the program or to schedule a viewing, contact coordinator Jared Johnson at 752-6565.

Reporter Tom Lotshaw may be reached at 758-4483 or by email at tlotshaw@dailyinterlake.com.