What is the process for selling a CLT home?
When a CLT homeowner wants to move there are several options. The home can be sold directly to an income-qualified buyer, can be sold back to the CLT, or it can be given to the children or other qualified heirs of the homeowner. Assuming the house has retained or increased its value, the CLT homeowner who sells his or her home will get all of their equity (the amount of money that they used as a down-payment as well as the portion of the mortgage paid off) plus a portion of the appreciated value of the home. The sales price for the house is determined using an independent appraisal of the value of the house and the resale formula outlined in the ground lease. Different CLTs have different resale formulas. The following is an example of how the selling price for a CLT house would be determined. This example uses resale guidelines that determine the sales price by adding 25% of the increase in value of a home to the initial purchase price of home. Initial purchase price (market rate) of
