Rondo Community Land Trust
626 Selby Avenue St. Paul, MN 55104
651-221-9884
Homebuyer Initiated Program (HIP)
HIP is an exciting homeownership program for low-to-moderate income households. Through HIP, participating households receive two grants, each for up to $25,000, to help them purchase and rehab a home that is available on the open real estate market in Ramsey County. The grants are used to reduce the amount a household needs to purchase a home, and to ensure that the home purchased is structurally and mechanically safe and sound.
HIP Purchase Price Write Down Grant
HIP provides $15,000 to $25,000 in grant money to write down the purchase price of a house currently for sale in Ramsey County. The amount of the grant depends on need and eligibility of selected buyers.
The HIP Purchase Price Write Down Grant stretches the amount of money a homebuyer can spend on a house.
HIP Rehab Grant
HIP provides grant funding of up to $25,000 for families and individuals to fix-up the houses they purchase through HIP. The grant is intended to ensure that HIP houses are decent, safe and mechanically and structurally sound. Rehab grant funds could be used for things like a new roof, a new furnace, and plumbing and electrical updates.
The HIP Rehab Grant takes care of major repair and maintenance issues that are present at the time of purchase. HIP homebuyers won't have to worry about a large repair in their first few years of homeownership.
How HIP Adds up
Families and individuals selected to participate in HIP work with a real estate agent to find a house for sale in
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EXAMPLES OF HOW HIP ADDS UP: |
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Household A |
Household B |
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Purchasing the house: |
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Mortgage amount: |
$130,000 |
$160,000 |
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HIP Purchase Price Write-Down Grant: |
$25,000 |
$18,000 |
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Total Purchase Price |
$155,000 |
$178,000 |
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Fixing up the house: |
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HIP Rehab Grant |
$20,000 |
$22,000 |
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Total Cost of Rehab |
$20,000 |
$22,000 |
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Total Cost of House & Rehab |
$175,000 |
$200,000 |
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TOTAL COST TO HOUSEHOLD |
$130,000 |
$160,000 |
Homes purchased through HIP become Rondo Community Land Trust homes -- the homes are owned by the CLT homeowners, the land is held "in trust" so that affordable housing will be available to future generations of low-to-moderate income homebuyers. HIP homebuyers enter into the Ground Lease agreement with Rondo CLT.
HIP Property Criteria
Homes that are eligible for HIP must meet the HIP Property Criteria, either at the time of purchase, or through the HIP Rehab Grant. Rondo CLT provides free property inspections for HIP properties
HIP/HOP
The Rondo CLT has formed a partnership with Thompson Associates to create a pilot program called The Homebuyer Initiated Program/ Home Ownership Program (HIP/HOP).
HIP/HOP assists families with children that are currently in Public Housing, or that have a Section 8 Voucher issued by a PHA.
HIP/HOP participants receive up to $50,000 in grant money from Rondo CLT and an additional $20,000 from Thompson Associates (deferred, and deferred and forgiven loans).
HIP/HOP serves two families at a time; as a family moves into homeownership, it creates a vacancy in a public housing unit or allows for a Section 8 Voucher to be turned back in for another family to use.
Rondo CLT is currently accepting applications for both HIP and HIP/HOP
House Moving and Rehabs
Rondo CLT moves buildings slated for demolition to vacant lots for extensive rehabilitation and sale as affordable housing. Through its house moving activities to date, Rondo CLT has helped divert over 15 million pounds of demolition waste from landfills.
Rondo CLT has moved a total of 12 buildings-15 housing units-The first five houses Rondo CLT sold were house moves.
If the opportunity arises , Rondo CLT would be interested in doing more House Moves and Rehab Projects, currently we have no plans to do a house move or rehab in the near future. Check website for any developments.
New Construction
In the last six yeard Rondo has built and sold a total of six houses. In 2000, Rondo CLT partnered with the Green Institute’s DeConstruction Services, the Saint Paul Neighborhood Energy Connection (NEC), and the Minnesota Office of Environmental Assistance to build two new houses using reclaimed building materials and energy efficient technologies.
The homes feature hardwood floors, doors, floor joists, light fixtures and redwood trim recovered from homes that were being demolished. One of the homes also has a solar panels that supplement the hot water heater.
Both houses were built on vacant inner-city lots donated to the Rondo CLT. The homes were sold as permanently affordable housing in 2001.
In the spring and summer of 2005 Rondo commuity land trust sold four new construction houses in St. Paul. Two of these houses were in the Eastide and were a partership with we sold four new houses in the Summit-University neighborhood. These single family homes incorporated sustainable construction features including reclaimed hardwood flooring, durable cement-fiber siding and have Energy Star efficiency rating.
We currently have no new construction houses available, look on the website fro future updates.
Partnerships
Rondo CLT continues to develop lasting collaborative relationships with a variety of organizations with complimentary missions. These partnerships have been integral in Rondo CLT's success in saving housing units form demolition, building sustainable housing, providing on-site training for women entering the trades, affecting public policy related to long-term affordable housing, and promoting the community land trust model.