Rondo CLT Basics

Homebuyers participating in Rondo CLT programs purchase only the house and enter into a long term agreement with the Rondo CLT to lease the land. The agreement gives the CLT homeowner the exclusive right to use the land as they would if they owned it.

Homes purchased through Rondo CLT's programs cost less than market rate homes. Homes purchased through Rondo CLT's programs are also decent, safe, and mechanically and structurally sound.

Ground Lease Agreement

Because Rondo CLT owns the land and the homeowner owns the home, Rondo CLT and the homeowner sign a ground lease that defines the roles and responsibilities of both parties.

The ground lease allows the homeowner secure, long-term rights to use the land. CLT homeowners have exclusive use of the land, and they have full responsibility for the property.

Rondo CLT charges $15/month as a lease fee to all CLT homeowners. The lease fee gives the homeowner full use of the land and support services from Rondo CLT.

The ground lease is renewable, can be transferred to the homeowner’s heirs, and ensures full rights of privacy.

The ground lease requires that the home be owner-occupied at least eight months out of the year.

The ground lease also provides a resale formula that is used to determine the sale price, if and when the homeowner decides to sell their Rondo CLT home.

Resale Formula

When a Rondo CLT homeowner wants to move there are several options. The home can be sold directly to a low to moderate-income buyer, can be sold back to Rondo CLT, or it can be given to the children or other qualified heirs of the homeowner.

Assuming the house has retained or increased its value, a Rondo CLT homeowner who sells his or her home will get all of their equity (the amount of money that they used as a down-payment as well as the portion of the mortgage paid off) plus 25% of the appreciated value of the home.

The sale price for the house is determined using an independent appraisal of the value of the house and the resale formula outlined in the ground lease.

The following is an example of how the selling price for a CLT house would be determined:

In this scenario, the seller receives the amount they paid off of their mortgage, their down- payment, plus $25,000 from appreciation.

The resale formula preserves the affordability for the next family who will buy the Rondo CLT house.

Essentially, by agreeing to the resale formula, a Rondo CLT homebuyer is agreeing to help another limited income family purchase a house in the same way that they were helped in purchasing their house.

Income Limits

Rondo CLT's programs are for families and individuals with limited incomes. Income limits vary by household size. The current limits are:

Household Size Maximum Income
1 person
2 persons
3 persons
4 persons
5 persons
6 persons
7 persons

If your total household income before taxes is below these limits, you can apply to Rondo CLT.

How to Apply

1. Determine your eligibility- You are eligible if you meet the criteria listed below

2. Attend an introductory community land trust one-hour orientation
Rondo CLT staff will explain the purpose and mission of Rondo CLT, the community land trust model of homeownership, Rondo CLT's homeownership programs, and the application process. Rondo CLT applications are available at the orientation.

3. Submit a Rondo CLT application
Applications are available at the Rondo CLT Orientation. Applications are reviewed on a first-come-first served basis.

4. Attend a Homebuyer Education Workshop
This nine-hour workshop gives you the basic tools to move through the home buying process with knowledge and comfort regardless of where, when, or how you purchase your home. Home Stretch is offered at a variety of times by many groups across the Twin Cities metro.

5. Meet with a homebuyer counselor to determine next steps.
All teachers of Home Stretch courses are homebuyer counselors; you can arrange to meet one-on-one with the teacher of your Home Stretch course. Additionally, there are several homebuyer counselors who are particularly familiar with Rondo CLT's programs:

    • Home Ownership Advisor
      Neighborhood Development Alliance

6. Meet with a loan officer to apply for mortgage pre-approval
There are specific banks and specific loan officers that currently provide mortgage financing for Rondo CLT's homeownership programs. Currently, they are as follows:

7. Attend a Final Application Interview.
When all of the above steps have been completed, applicants meet with Rondo CLT staff to ensure that all questions are answered.

8. Buyer selection Committee Review.
Finally, the Rondo CLT Board's Buyer Selection Committee reviews all applicants to determine approval for homeownership programs.