Los Alamos County Housing Market Needs Analysis, 2019 Page 56
income on housing. Easing this housing burden would allow these households to meet
other needs.
a) Increase Participation in the Homebuyer Assistance Program
The Los Alamos County Homebuyer Assistance Program, which is managed by the Los
Alamos Housing Partnership through a contract with the County, assists selected
qualified households with a down payment and homebuyer education for a home
purchase in Los Alamos County. Homebuyers must meet financial criteria set by the
County. The maximum income for a family of four is $96,640, so the program can help
middle income families that are priced out of the market in Los Alamos County. The
program has assisted 13 buyers since 2017. The use of this program is limited by the
number of homes on the market, but as additional homes are built, this program could
serve a capacity of about 20 projects per year with existing staff.
Eligible home types include detached, duplex, triplex, quad, townhome, condo or
manufactured homes. Manufactured homes must be on a permanent foundation.
b) Explore the Potential for a Community Land Trust (CLT)
A community land trust (CLT) is a development model where land is held in perpetuity
by a non-profit, community-based organization on behalf of a community rather than
being sold. The CLT enters into a long-term, renewable ground lease instead of a
traditional sale. This structure allows homes to be sold at below market rates that are
affordable for low- to moderate-income families. Public subsidies through local land
donations, grants, federal loan and grant programs and other similar techniques
establish initial affordability. The intent is to maintain permanent affordability while
enabling a family to own and build equity in a home they could otherwise not afford
and realize a modest profit from the increase in property value when they sell. The
value of the land is kept by the trust, and there are limits on profits, which maintains
affordability for future low to moderate income families. The CLT essentially shares in
the home’s increase in value and passes that value to the next qualified buyer.
A very successful example of a CLT in New Mexico is the Sawmill Community Land Trust
(SCLT) in Albuquerque. The land SCLT has developed property north of Old Town in the
Sawmill neighborhood. The development includes a mix of housing types as well as
commercial space. Some of the County’s land could be developed through a land
trust, with the County contributing land at a below market rate to the non-profit
organization with expectations for the development and restrictions on how the land is
to be used. CLTs can also provide homes on scattered sites and different means of
property acquisition to adapt to local market conditions.
When the County considers a community land trust model it will be important to
consider the long-term financial sustainability of the trust. The trust can be sustained by
developer fees, land leases, resale fees and rents. However, CLTs typically have rely on
grants and fundraising to meet operational costs. A sustainable scale is approximately
150 to 200 units with a mix of ownership, rental properties, and mixed income projects.