The Southard is an environmentally sustainable neighborhood developed by Homestead Community Land Trust, which makes homeownership possible for modest-income households. The Southard is only the second permanently affordable development of its size built with features that significantly reduce utilities costs and climate impacts. These three- and four-bedroom cottage style homes will achieve net zero energy usage through highly energy-efficient systems and construction and the use of solar panels for onsite energy generation. These features lower the cost of operating and maintaining the home, making them more affordable to own, while at the same time addressing issues like climate change and water quality.
Affordable homes at The Southard are priced between $275,000 and $332,000. These homes will be affordable to households with incomes less than 80% of area median income as determined by the U.S. Department of Housing and Urban Development for the King County area. The development will also include five market-rate homes, and two homes for adults with intellectual and developmental disabilities.
How Community Land Trust Homes are Different
Through one-time investments that subsidize the initial price of the homes and partnerships with buyers, Homestead keeps homes affordable to all subsequent income-qualified buyers permanently. Buyers must qualify on the basis of income by applying through the Homestead website. In community land trust homeownership, buyers purchase the structure of the home using a traditional fixed-rate mortgage. The land beneath the home is not included in the purchase. It is owned collectively through Homestead, a non-profit organization. Homeowners lease the land for a monthly fee. Each home accrues equity at a rate of 1.5% compounded annually, through a formula contained in the ground lease signed at purchase. Homeowners are members of Homestead, and participate in the governance of Homestead, including membership on the Board of Delegates.