When you buy the house, you will sign a ground lease. This lease describes the rules for CLT homeownership in detail, but here are some important provisions:
* If you decide to sell your house, the ground lease sets the price. If houses in the area are more expensive than when you bought the house, this price will be higher than what you paid. But it will be lower than the market price.
Why We Do This
U-CLT wants to make sure that if you sell your house, you can use the wealth you have built. But we also want to make sure that the house stays affordable for the next buyer. If you resell the house right after you buy it, the ground lease will not allow you to sell for much more than the price you paid (the purchase price). In other words, do not buy this house if you plan to “flip” it.