MAINTAIN THE MIDDLE FUND
WHY
Boulder needs more permanent workforce housings. Living where you work decreases GHG emissions through reduced commuting and increases one’s capacity to participate in civic engagement and community building…and raise a family! In Boulder's rapidly changing market, many homes are being purchased, scraped and rebuilt altering the character of the neighborhood. By assisting Boulder's “essential “ workers especially-public employees, environmental, social justice and other non-profits, artists and innovators- to purchase a home and permanently commit themselves to the community, MTM hopes to also preserve the vibrant culture which exists in the Goose Creek Watershed. In general this assistance will make home ownership possible to all generations in a community where 60% of the population 25 and older cannot afford to own a home.
WHAT
Maintain the Middle (MTM) is a Goose Creek Community Land Trust program to provide down payment assistance to individuals, families and coop groups whose income is 60% to ~150% of the Area Median Income, primarily in Goose Creek CLT projects. MTM assists individuals who qualify for conventional mortgages but lack the large savings needed to afford a home in Boulder. Those looking to purchase in the rapidly appreciating Goose Creek watershed are prioritized.
MTM provides a low risk, transparent investment vehicle for investors interested in a modest, lower risk return while promoting resilient, diverse communities, enhancing productivity for employees of area firms and making the dream of home ownership possible for those who otherwise could not purchase a home.
HOW
MTM raises low cost (~4% return, 4.5% rate to borrowers with 3-10 year terms) investment capital to help more renters with jobs in the city purchase homes. The homes purchased become permanently affordable through conveyance of the underlying land to a community land trust with a resale restriction formula (typically 25% of market appreciation).
The property to be purchased must become at the time of purchase and throughout the lending period the primary residence of the applicant.
Goose Creek acquires a right of refusal for repurchase of the property at the original price plus the agreed upon moderated appreciation.
RESULTS
The first project raised $150,000 in 30 days to help a renting family purchase a duplex on North St. in August, 2015. Unfortunately, the buyers divorced and the property was resold to another local family who renovated it for themselves and a mother-in-law. Goose Creek’s participation may have prevented the "McMansionization" of the property. The transaction generated a return to the land trust and provided valuable experience to improve our program.
