Area Median Income (AMI for short) is a figure that is updated annually by the Department of Housing and Urban Development and it is indexed by family size. The Pittsburgh Area’s Area Median Income includes all of Allegheny, Butler, Beaver, Westmoreland, Washington, and Fayette Counties. The chart below shows exactly what AMI is for our area in 2019.
CLT home ownership is very similar to market rate home ownership. Home owners build equity, make their mortgage payments, and are responsible for property taxes. They can use their yards as they wish, and can make aesthetic modifications to the homes.
The difference is that CLT homeownership involves a ground lease. The ground lease includes a resale formula, which sets a cap for the maximum price the home can sell for in the future, and also requires owner-occupancy. This means that the home cannot be leased out – the homeowner must live in the house for at least 10 months out of the year, and it can’t be an income-producing property. The ground lease also requires that if the homeowner wants to make any modifications that will increase the size of the house, they let the CLT know before beginning construction.
Yes. Interior and exterior modifications are allowed. CLT homeowners own their homes and con do most of what a conventional homeowner can do, with the stipulation that they must report structural changes to the CLT.
City of Bridges CLT is committed to the idea that a house doesn’t need to be expensive to be high quality. The CLT houses are built beyond Energy Star sustainability standards, which reduces their environmental impact and saves the homebuyer money by reducing energy usage. They are also designed to fit the neighborhood’s existing character, with respect to applicable community plans and design guidelines, and will not look out of place.
None of the houses has dedicated off-street parking. No original houses in the neighborhood have garages, and these new homes are designed to fit with the neighborhood context. In addition, cutting into the curb to create a private driveway to access a garage eliminates a public street parking space. Given this neighborhood context, and the bike and public transit accessibility in our neighborhoods, it made more sense to use the space on these lots to provide each house with a backyard instead of a private parking space.
The CLT acquires vacant or abandoned property through the City of Pittsburgh’s property reserve and treasurer’s sale. The CLT has also received in-kind gifts, and the organization has purchased properties to renovate.
CLTs exist in 45 states throughout the U.S. Nationwide data shows that 70% of CLT homebuyers go on to buy a market rate home for their next home, and CLT homebuyers default on their mortgages about 10 times less frequently than market rate buyers.
Yes. The ground lease allows the homes to be fully inheritable. Income restrictions don’t apply to inheritors, but the person who inherits the house is still bound to the maximum sale price stipulated by the ground lease.
This is a home ownership opportunity intended to provide residences for people who would not otherwise be able to own a home. Rental and Airbnb properties are not subject to the same affordability rules that CLT homes have. Having renters paying to live in the houses would not address our neighborhood affordability issue, and would defeat the purpose of providing affordable housing.