(Rendering courtesy of RootedHomes)
Prospective Homebuyers Have Opportunity for Affordable Housing
RootedHomes was founded back in 2014 by two Bend residents who saw their friends, family and coworkers being displaced by high housing costs. They recognized the need for affordable housing, but also understood that houses are a big investment, and buyers will need to gain equity in that investment. They relied on a nationally recognized community land trust model to help facilitate permanently affordable housing to Bend and Central Oregon.
“Most CLTs take a few years to get a community underway,” said Tess Spellacy, homeownership program at RootedHomes. She oversees anyone who is interested in buying a home/applying for one, facilitates the home lotteries and the outreach team.
“We closed on the first community in 2021, and have been scaling up since then,” Spellacy said. “We now have 57 homes in Bend, we’ve expanded to Redmond with three communities totaling around 90 houses. In addition to that, we are in predevelopment for our community in Prineville.”
Now, prospective homebuyers in Redmond can apply for the Rooted at 19th Housing Lottery, which is open until June 1 at 11:59pm. Applicants must meet the following criteria; Selected homebuyers must provide verification that their household income is below 80 percent of the area median income (AMI) for Deschutes County; Selected homebuyers must show one year of consistent household income or two years of income for self-employed households; Homebuyers must be first-time buyers and own no other real estate. A full list of requirements is available on the RootedHomes website.
Here is how the RootedHomes CLT works: homeowners own their home outright by leveraging a traditional mortgage; the CLT owns the land under the house and leases it back to the homeowner through a 99-year renewable land lease. The lease ensures that the home resells to another income-qualified homebuyer if the homeowners sell. The original homeowner receives a fair return on their initial investment while helping future generations access affordable homes as they did.
This CLT model is a direct result of the Civil Rights Movement, when Black sharecroppers in Georgia wanted the right to vote but couldn’t vote without owning land. They pooled their resources and collectively purchased a working farm and, in doing so, started the first Community Land Trust.
To maintain a fair investment, Spellacy said that “Our CLT model keeps homes affordable, but still allows homeowners to benefit from what is likely the largest investment of their lives. Our houses maintain a fixed rate of equity (1.5 percent, based on the first mortgage payment) to accrue value for the owners.”
An additional component to the RootedHomes formula is providing environmentally friendly options to families.
“The net-zero factor of the program is what originally drew me to RootedHomes,” said Spellacy. “It’s really a dual mission, to not only supply permanently affordable housing, but to also provide energy efficient technology to people who will actually benefit from the savings.”
Further, Spellacy provided an example of a homeowner who has asthma who saw their symptoms get significantly better as a result of living in a RootedHomes property. Their houses are built airtight with very little leakage, providing a very effective (and healthy) ventilation system.
Potential buyers in Redmond should consider applying for the Rooted at 19th Housing Lottery before it expires on June 1 at midnight.
