At a Glance

San Juan Community Home Trust creates permanently affordable home ownership in Friday Harbor.

  • Home Trust has built 49 homes in three neighborhoods, Salal, Sun Rise I, Sun Rise II, and HolliWalk.

  • 57 families/individuals have purchased these 49 homes to date. 30 children now live in them.

  • Homeowners are of all ages. They work in many essential areas: schools, grocery stores, retail businesses, construction, health care, and the arts. Many are self-employed; some are retired.

  • Our homeowners volunteer in the community: they are firefighters, in our schools, in the community theater, in the library, and as Board members of the Home Trust and of other non-profits.

  • The Home Trust’s durable, attractive, energy-efficient homes are sold to low to moderate income Island households. Grants and contributions providing large subsidies in each house are passed forward, from one owner to the next, using a resale formula to keep the price permanently affordable. The Home Trust also manages the re-sales of the homes and maintains a pool of applicants wishing to purchase who have qualified to buy affordable homes when one becomes available.

  • Permanently affordable homes benefit all Island residents and the long-term sustainability of our community by providing housing for lower income islanders who are essential for the island’s economy to thrive.

HOW WE DO IT

As a nonprofit organization the Home Trust is able to apply for grants and accept tax-deductible contributions from individuals, foundations and agencies that support home ownership.  With these funds, the Home Trust subsidizes the cost of land, infrastructure and construction of new homes.  Homebuyers must obtain a mortgage for the affordably priced home and agree to limit the eventual resale price of the home to insure that it is permanently affordable to working people.  The increase in resale price is restricted by a resale formula.

The Home Trust is a Community Land Trust (a CLT), a type of organization that separates the cost of land from the cost of a home. The land is held in perpetuity by the nonprofit organization, while the homes are sold to income qualified buyers. Islanders are able to achieve the long term security of home ownership, to build equity, and to pass the ownership of the home on to their heirs, through our program.

For more information, read through the FAQs below.

Our History

The History of the Home Trust is best told in the words of one of its Founders.

Reminiscences from Lee Sturdivant, one of a handful of movers and shakers behind the establishment of the San Juan Community Home Trust and a Board Member Emeritus:

“I first heard about a Community Land Trust through Lisa Byers when she led the early OPAL effort on Orcas.  I was fascinated by the idea of “permanently affordable” housing and just what that might offer in an island community of ever increasing rents and house prices.  Could this be a way to help keep a diverse island community ?

Jim Lawrence and I attended several meetings about getting a CLT started on San Juan Island.  Stacy Markman got us together with others, but we weren’t at all sure how to get it going here.  We had endless meetings about “the problem”, but no real results.  Then one Saturday morning Jim Lawrence introduced me to Larry Soll at Jim’s market tomato stall.  They were talking about ”the problem” and I joined in.  Bingo.

Soon after we were meeting at my house over soup and Larry turned our idle talk into reality by expressing a willingness to add start-up financial backing and business sense that any such effort so desperately needs.  Soon after, two local builders, Mark Hetrick and Peter Kilpatrick joined in.

It is now 29 permanently affordable homes and several years later, with the third Home Trust project in full swing, and time to stop and give a big salute to Larry Soll and Nancy Maron for their willingness to back such an awesome community program.  And to Mark and Peter for making it a reality.  Sure, the Home Trust might have happened without them, but it’s very hard to imagine quite how.”

FAQs

  • The Home Trust is a non-profit organization, a Community Land Trust (CLT), building housing for purchase by low and moderate income-eligible island residents. This housing is made permanently affordable in two ways: 1) through large subsidies provided by local donations, private charitable grants and foundations, and government grants, and 2) by the use of covenants restricting the resale price of each house. The Home Trust maintains continuing oversight of each neighborhood and housing unit

    Our members and supporters are committed to community preservation through forever affordable homes. Their involvement is critical to the future of San Juan Island for they recognize that Home Trust homeowners provide services essential to the sustainability of the San Juan community.

  • Home Trust applicants are people who live or work in San Juan County and cannot otherwise afford to purchase a market rate home. Applicants who income-qualify must live on San Juan Island.

  • Affordable housing is one of the most important aspects of having an island economy that works for everyone, whether employer or employee, public or private sector, blue collar, white collar, or the service worker. Without such housing, most of us could not live here.

    Homeownership creates stability for employers, families, and individuals which in turn contributes to community economic and social stabilty.

    Homeownership creates security, a sense of community, pride of ownership, equity, and legacy.

  • Federal and State Government grant funding is available for construction of homes designated to be sold only to low-income earners – those earning 80% or less of Area Median Income (AMI).

    San Juan County Home Fund grants are available for construction of homes designated to be sold to low- or moderate-income earners – those earning 115% or less of Area Median Income.

    Private Donations. Over one third of each home’s subsidy comes from private donations and constitutes a significant portion of each house subsidy.

  • The Home Trust acquires land, develops homes, qualifies applicants, packages mortgages and provides homebuyer education classes.

    In Salal, ownership of land is retained by the Home Trust, leased to homeowners through a 99-year renewable ground lease, the traditional CLT model, and incorporates deed restrictions for permanent affordability.

    In Sun Rise, the buildings and land are owned in common by the residents and kept affordable over the long term by a using deed restriction, a Permanent Affordability Covenant.

    At HolliWalk, ownership of land will be retained by the Home Trust, leased to homeowners through a 99-year. Deed restrictions for permanent affordability will be utilized.

    A set resale formula is used to determine resale prices of homes.

    Homes must be affordable to income eligible applicants. No more than 31% of monthly income can be spent on principal, interest, taxes, and insurance.

    Federal, State, and County grants, and donor contributions are used for each home’s construction. These funds provide the home’s subsidy, make the house affordable to lower income homebuyers, and stay with the home in perpetuity. Bank and other loans provide the remainder of the cost of construction and are repaid with the homebuyer’s mortgage and down payments.

    The subsidy is rolled over to each successive buyer by a restrictive resale formula.

    At Salal and HolliWalk, homeowners purchase improvements (homes) on the land but not the land itself.

    In Sun Rise, homeowners purchase the interior improvements of the home but not the building itself or the land on which it is built.

  • Home Trust neighborhoods (with the exception of Salal) contain a limited number of homes for moderate-income earners (those earning 115% AMI or less).

  • Yes. If you are the initial owner of a Home Trust home a minimum of 50 hours of “Sweat equity” is required.

  • Subsidies may be available to low-income homebuyers (generally those earning 65% AMI or below).

  • Homebuyers must earn sufficient income to make mortgage payments and Homeowner fees and have a credit history that qualifies them for available mortgages.

    Homebuyer debt payments (including housing) can be no more than 41% of adjusted gross income

    Homebuyers must be residents of San Juan Island.

    All homebuyers must complete a homebuyer education course, including education about living in a CLT.

  • Very low-income homebuyers may be eligible to obtain a low-interest mortgage available only to first time homebuyers.

    They may also be eligible for down-payment assistance programs for first-time homebuyers.

  • Landscape their personal yard areas and share in the use and maintenance of common areas.

    Pay a monthly fee to the Home Trust for maintenance reserves, insuring long-term upkeep on the home and common areas.

    Pay a low monthly administrative fee to the Home Trust.

    Maintain the home in good condition.

  • Building equity and share in the increasing value of the home.

    All family members benefit from the satisfaction and stability of living in and owning their own place of residence.

    Having the help and support of your fellow community members.

    Having resources available through the Home Trust Staff.

  • At time of resale, the Home Trust and homeowner(s) jointly calculate the sale price using the resale formula to determine the selling price of the home with the restriction that the current owner must sell to another income-eligible applicant.

    Currently the Home Trust uses two resale formulas. The first, adopted prior to sale of homes in Salal, is determined by using the change of percentage of increase of Area Median Income (AMI) from time of purchase to time of sale. The second, adopted in January 2020, is a fixed percentage increase per year, used for sale or resale of homes sold after January 2020.

    Currently the Home Trust uses two resale formulas. The first resale formula, adopted in 2004, is based on the percentage of increase/decrease in Area Median Income (AMI) from time of purchase to time of sale. The second formula, adopted in January 2020, and applicable for all homes sold after January 1, 2020, has a fixed percentage increase of 1.5% per year.

    Please note that the home must be in saleable condition with all required repairs, as determined by the Home Trust and the Home Inspector, completed by the seller. The seller of a Home Trust home is entitled to all equity built during their ownership, less outstanding mortgage loans, closing costs, and costs of any repairs necessary to return the home to the Home Trust’s standards.

  • Home Trust homes are sold far below their market value for the simple reason that San Juan Island’s low- and moderate-income homebuyers can only rarely afford to purchase homes on the open market. Housing on San Juan Island is the least affordable in Washington state; the wages for low- and moderate-income islanders are also among the lowest in the state.

    All Home Trust homes are endowed with a subsidy provided through private donations and government or private grants, giving the Home Trust the ability to sell newly constructed homes well below the cost of construction.