How a Plot of Land Becomes a Home for Generations to Come

The goal of homeownership is often embedded in the idea of the American dream. However, hurdles like a high down payment, debt, know-how, and day-to-day expenses prevent folks from accessing a home of their own. So how does one become a homeowner when 46 percent of Americans are considered cost-burdened? 

What’s cost-burdened you may ask? The U.S. Department of Housing and Urban Development (HUD) defines cost-burdened as households that pay more than 30 percent of their income towards rent or mortgage expenses.  

How can we get the pendulum to swing in the direction of creating homeownership opportunities for our community, with all the challenges folks are facing? This is where the LEAP Housing Trust comes into play. 

Sustainable & Self-Sustaining Housing

A housing trust is a self-sustaining model that takes a one-time investment to create affordable homes for purchase by working families with modest means. The home remains affordable family after family, in perpetuity. Here’s how it works: 

1. The housing trust acquires land through donations and private sales-the land is owned by the trust forever.

2. LEAP builds homes on that land.

3. LEAP sells homes to income-qualified buyers at below-market prices. The homebuyers never buy the land, just the home.

These are the steps that come together to make homes affordable in perpetuity, ensuring our public investments go further and do more. Generation after generation.

Individual Impacts

To break it down a little more, LEAP’s Housing Trust is a form of permanent affordable housing for Idaho households who make 80 percent of the area median income (AMI) or less. That's a household of 4 making an annual gross income of $67,350 in Ada County. Through the housing trust, families and individuals have a greater likelihood of attaining and sustaining homeownership opportunities versus competing with and paying open market rates.

Meet Caritas Commons

What are the benefits of a housing trust? LEAP’s Housing Trust is a community-run platform, made by Idahoans for Idahoans. Besides families being able to build equity through appreciation, the homes in trust build strong, safe, and high-quality communities. Caritas Commons, LEAP’s first community dedicated to affordable homeownership held in the LEAP Housing Trust is home to 14 single-family homes in Boise. Caritas Commons will feature a nature path complete with seating overlooking a future public walk and bike path, green features to maximize insulation efforts ensuring reduced usage of electrical-powered HVAC systems, and drought tolerant xeriscape landscape artfully dispersed around each home. Talk about sustainability.

Beyond creating affordable homes, LEAP's Housing Trust impacts our community at large and the Idaho families that reside in these communities.

Idaho’s First Housing Trust

LEAP created the Treasure Valley's first housing trust focused on rentals and homeownership opportunities for income-limited households. Why do we need a housing trust? The housing trust with homeownership opportunities ensures three things: 

1. Wealth building. By ensuring mortgages are never more than 30% of their income, along with market-driven equity increases, homeowners build more wealth than if they were still in the rental market. 

2. Safe from inflation. In an affordable rental home with rates controlled by the U.S. Department of Housing and Urban Development, costs year over year track with the Consumer Price Index (CPI). In the LEAP Housing Trust, the rate is fixed for 30 years.

3. Affordable forever. Most homes on the market that were affordable in 2015 are no longer affordable, even with no change in ownership. That won't happen to any of the homes held in Trust. 

No other program can ensure these three outcomes for homeowners. 

Want to join the many corporations, organizations and individuals who have supported the housing trust with land or financial donations? Let us know at info@leaphousing.org!