Working with Government Partners
Increasing Access to Affordable Homeownership
The core of the relationship revolves around the local government’s commitment to providing a subsidy for the creation of long-term affordable housing. Typically a one-time subsidy, the funds cover the cost of the land, which makes the home perpetually affordable. In some instances, additional down payment assistance is needed and can often times be provided in the form of a deferred loan.
Bright Community Trust works with local governments to establish a trust into which the city or county places its owned vacant lots or existing properties. Bright Community Trust continues to oversee the home and land as trustee of the trust. Since Bright Community Trust also provides support services to the homeowners in the trust, the homes are well maintained and the families have additional support services to become more financially successful. When they are able to buy a market rate home a new eligible homeowner is able to purchase an affordable home without additional subsidy beyond what may be provided by a down payment assistance program.
Opening the Doors to Affordable Rental Homes
In the case of rental developments, the local government donates or funds the purchase land. Once the land is in the trust, Bright Community Trust then works with a developer — or as the developer — to build modern, energy-efficient rental units. Because the cost of the land is not included in the overall project budget, equity is established in the development, and the units can be priced at affordable rental rates.