Central Iowa Affordable Housing | New Model
- The Central Iowa Community Land Trust (CICLT) is gearing up to launch by the end of 2025, with the goal of creating lasting affordable housing options in the...
- Carrie woerdeman, executive director of Home Inc., emphasized the land trust as a vital tool for ensuring permanent affordability in the community.
- A 2019 workforce housing study indicated Polk County needed over 55,000 new housing units by 2038 to accommodate population growth, with 60% of those units being owner-occupied homes.
The Central Iowa Community Land Trust is set to launch by late 2025, tackling the critical need for affordable housing in the region. This initiative aims to provide lasting solutions, initially focusing on Des Moines, West Des Moines, Waukee, and Polk County. the trust targets families earning up to 80% of the area median income, working to combat the loss of affordable units when incentives expire. Learn how this innovative model, inspired by a 2019 workforce housing study, uses community land trusts to ensure long-term affordability. News Directory 3 is tracking this critical story. The Trust will be working with Home Inc to develop property acquisition strategies, policies, and marketing plans. Discover what’s next as the Central Iowa Community Land Trust takes root.
Central Iowa Community Land Trust to Expand Affordable Housing
The Central Iowa Community Land Trust (CICLT) is gearing up to launch by the end of 2025, with the goal of creating lasting affordable housing options in the region. Initial efforts are underway to acquire properties for the trust.
Carrie woerdeman, executive director of Home Inc., emphasized the land trust as a vital tool for ensuring permanent affordability in the community. Home Inc. is a nonprofit dedicated to boosting homeownership opportunities for Central Iowa residents.
A 2019 workforce housing study indicated Polk County needed over 55,000 new housing units by 2038 to accommodate population growth, with 60% of those units being owner-occupied homes. The Central Iowa Community Land Trust is a response to this growing need for affordable housing.
following the study,a community group explored the feasibility of a land trust.With support from Des Moines, a consultant was hired, and an advisory committee formed, leading to the creation of the Central Iowa Community Land Trust. The trust has adopted bylaws and articles of incorporation and is finalizing its nonprofit status.
Woerdeman noted that while tax credits and city incentives have added affordable housing units, thes units frequently enough revert to market rates when incentives expire. Community land trusts offer a way to reduce this loss of affordable units.
“In my mind, affordable housing is a bucket,” Woerdeman saeid at a recent housing symposium.”We feed affordable units into the top of the bucket. At the bottom of the bucket there is a hole where affordable units are coming out.”
Community land trusts aim to minimize that “hole,” she added.
How Community Land Trusts Work
Community Land Trusts (CLTs) are nonprofit organizations that acquire and manage land and buildings to provide long-term affordable housing. The first CLT in the U.S. was established in 1969 in Georgia to help Black farmers access land, according to the Brookings Institution.
The U.S. now has about 225 community land trusts in various areas, according to Grounded Solutions Network. While housing is the most common use, CLTs can also manage retail, office, and multifamily properties.
CLTs purchase or build homes using public or private funds, then sell the house to a qualified homebuyer while retaining ownership of the land.When the homeowner moves, the home is sold to another qualified buyer, with the original homeowner receiving a predetermined amount of equity from the sale.
The Central iowa Community Land Trust will likely use 99-year leases with restrictive covenants requiring income qualification, Woerdeman said. The trust will focus on families earning at or below 80% of the area median income, which is $91,600 for a family of four, according to federal guidelines.
next Steps for the Central Iowa Trust
The initial service area includes Des Moines, West Des Moines, Waukee, and all of polk County. Other communities will be contacted about joining the trust,Woerdeman said.
The trust has formed committees to develop property acquisition strategies, policies, procedures, and marketing plans. A program manager, who may become the executive director, will likely be hired soon. Home Inc. will provide staffing and back-office support during the trust’s establishment.
The first property will likely be a house built by Home Inc., with the land donated to the trust. The trust will eventually need to secure funding through grants and other sources to buy properties, assist homeowners with down payments, and pay staff. The board has not yet set an annual budget.
The long-term goal is for the trust to operate independently,overseen by a board including land trust residents,government representatives,and community members. Independence is expected when the trust owns 100 to 150 properties.
homeowners can make improvements and must maintain their properties. the aim is to provide habitable conditions and add value to the community, increasing property values in the neighborhood.
“We want people living in habitable conditions,” Woerdeman said. “The other intent of the land trust is to add value to the community… The overall net effect should be very positive for property values in a neighborhood.”
What’s next
The Central Iowa Community Land trust is poised to become a key player in addressing the region’s affordable housing shortage, offering a sustainable model for long-term affordability and community progress.