MAPLE GROVE, Minn.– TopLine Financial Credit Union said it is partnering with Rondo Community Land Trust, a St. Paul, Minn.-based nonprofit, as part of an effort to make homeownership affordable for individuals and families earning low-to-moderate incomes, and to preserve affordability for small businesses operated by people of color and non-profits at risk of displacement from rising rents.
The $824.8-million TopLine Financial said it has become the first CU to be one Rondo Community Land Trust’s approved mortgage lenders for its Homebuyer Initiated Program (HIP), which assists home buyers at or below 80% area median income to purchase and make repairs on a single-family home (including duplexes) in St. Paul or Suburban Ramsey County.
“The community land trust model assists buyers who have low-to-moderate income to purchase a home through a grant program, making the purchase price more affordable,” the organizations said in a statement. “The homeowner is buying the house, while the community land trust holds the land in a trust, with the homeowner leasing the land in a long-term 99-year, renewable lease. In return for receiving grant funds (which strengthens their buying power), the homebuyer agrees to limit their proceeds when they sell so another individual or family with modest income can afford to purchase the home.”
The Requirements
According to the organizations, the prospective buyer(s) must attend a Rondo orientation, submit an application with RCLT, and complete a mandatory first-time homebuyer’s course. After completion, buyer(s) are eligible to enroll in the Homebuyer Initiated Program in which they will receive two grants to help purchase a home.
The Affordability Investment Grant up to $150,000, pairs with a mortgage to strengthen purchasing power, and the Rehab Grant covers the cost of essential repairs and improvements to ensure the structural and mechanical integrity of the home, the organizations said.
‘Shared Passion’
“We are excited to partner with Rondo Community Land Trust to combine our shared passion and resources to help make homeownership possible and affordable,” TopLine President and CEO Mick Olson said in a statement. “We are committed to connecting with non-profit community partners such as RCLT, and by working together we can support economic growth and diversity, foster financial inclusion and access, and help more consumers achieve their financial dream of owning a home.”