Option to Have Affordable Housing in Bloomington

Acquiring a property is neither an easy nor cheap endeavor, and not everyone will be able to own a good house in their lifetime. There are ways in which a person can achieve the dream of owning a home, and the city of Bloomington has an innovative way to do so.

The Bloomington Housing Authority, concerned about the demand for housing and the difficulty residents are having in obtaining one, has incorporated the concept of land trusts into its plans and measures.

Land trusts are non-profit organizations that purchase lots and maintain them as permanently affordable housing to rent or sell the buildings on these lots to low- and moderate-income residents.

For example, if a person wants to buy a property with a sale price of $200,000, under this scheme they could purchase it for approximately $95,000, about $100,000 below the median sale price of a property in Bloomington. However, they are buying the building, and the lot is not included in the sale price.

The land trust measure in Bloomington has been incorporated as a solution to the wide gap between housing prices and the monthly income of the population, which makes housing increasingly unaffordable. Additionally, the city currently has few investors or housing developers willing to build properties for middle- or low-income residents. Situations like these contribute to multiple families having limited options.

Buying a home belonging to the housing trustees can be a possible solution to the housing affordability issue for many families in Bloomington. By excluding the lot price when purchasing a home, it becomes easier to own a home.

By excluding the price of the lot or land when purchasing a home, buyers can accumulate equity, but they will only receive 25% of the home’s appreciation, while the trustee retains the rest of the value.

When buying a property with these characteristics, the buyer can obviously remain in it indefinitely and can also pass it on as an inheritance, but their heirs will only be able to dispose of 25% of the market appreciation value at the time of sale.

Available Foreclosures:

Bloomington: 12 homes available.

By Elías DaSilva | 21 de octubre de 2024.