In response to:

I am writing regarding an article entitled, “Affordable Forever,” by Winton Pitcoff, published in your February 2002 issue. [T]he article states that the “Owners of First Homes’ CLT houses can still make money should they decide to sell: half the appreciated value will go to the owner while the other half will fund the operation of the CLT.” In actuality, the other half of the appreciated value is never realized. It is not part of the sales price; therefore, the price of the house remains below market value – maintaining affordability for the next buyer. It also might be worth noting that CLTs across the country utilize a variety of different resale formulas, and the percentage of earned equity retained by the CLT home seller varies. We are grateful to Shelterforce for publishing this article and others that “spread the word” about the CLT model and its benefits. Thank you again for your consideration of this matter.

Sean Allen
Executive Director
First Homes


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