A new housing initiative in Grand Rapids aims to make homeohomewnership more accessible for middle-class families who find themselves priced-out of the traditional housing market.
Dwelling Place Community Land Trust has completed a neighborhood development on Union Street in Grand Rapids. Through an innovative shared equity model, the development offers homes at 25% below market value.
“We took approximately five acres here and converted the land to what we call a community land trust,” said Scott Bodenberg, Dwelling Place Community Land Trust Manager.
The model works differently from traditional homeownership. “What that means is the Dwelling Place owns the property, and then we do a shared equity with the homeowners,” Bodenberg explained. “It’s kind of similar to a condominium development, you’ve got the home that you purchase, but you don’t own the land. You lease the land.”
The development consists of 42 homes targeted at buyers with household incomes between 60% and 120% of the area’s median income. For a family of four, this means earning between $60,000 and $120,000 to qualify.
“What this development is for is for middle-class people who have been priced out of the home buying — the homes are just too expensive,” Bodenberg said…