Rondo Community Land Trust

TO STRENGTHEN COMMUNITIES BY PROVIDING PERMANENTLY AFFORDABLE, SUSTAINABLE HOUSING FOR FAMILIES AND INDIVIDUALS AT OR BELOW 80% OF THE AREA MEDIAN INCOME; AND, TO PROMOTE THE LAND TRUST MODEL AS A METHOD OF PRESERVING AFFORDABLE HOUSING.

THE ORGANIZATION, A COMMUNITY LAND TRUST (CLT), ACHIEVES PERMANENT, LONG- TERM HOUSING AFFORDABILITY THROUGH THE USE OF A GROUND LEASE. CLT HOMEBUYERS PURCHASE ONLY THE HOUSE, AND ENTER INTO A 99-YEAR GROUND LEASE WITH THE ORGANIZATION FOR THE EXCLUSIVE USE OF THE LAND. THE ORGANIZATION'S GROUND LEASE STATES THAT WHEN A HOMEOWNER DECIDES TO SELL THEIR HOME, THE HOUSE IS SOLD TO ANOTHER LOW-TO-MODERATE INCOME HOUSEHOLD FOR THE ORIGINAL PURCHASE PRICE PLUS 25% OF ANY APPRECIATION IN THE HOME'S VALUE. BY LIMITING MARKET APPRECIATION, PERMANENT AFFORDABILITY IS ENSURED AND INITIAL SUBSIDIES INVESTED IN MAKING THE HOME AFFORDABLE ARE SPREAD ACROSS GENERATIONS OF LOW-TO-MODERATE INCOME HOMEBUYERS. MOST IMPORTANTLY, THIS AFFORDABLE HOUSING OPTION GIVES HOUSEHOLDS THAT COULD OTHERWISE ONLY AFFFORD TO RENT THE OPPORTUNITY TO TAKE ADVANTAGE OF ALL OF THE BENEFITS OF HOMEOWNERSHIP; STABILITY, SECURITY, TAX BENEFITS, AND THE OPPORTUNITY TO EARN EQUITY AND APPRECIATION IN REAL ESTATE THAT IS NOT AVAILABLE THROUGH RENTING.

THE RONDO COMMUNITY LAND TRUST (RONDO CLT) CREATED THE RONDO DEVELOPMENT ON SELBY LLC - A SUBSIDIARY LIMITED LIABILITY CORPORATION FOR THE SELBY MILTON VICTORIA (SMV) COMMERCIAL LAND TRUST AND SENIOR HOUSING PROJECT ON SELBY AVENUE. RONDO CLT, ALONG WITH ITS PARTNER COMMUNITY HOUSING DEVELOPMENT CORPORATION (CHDC), DEVELOPED TWO MIXED-USE COMMERCIAL/RESIDENTIAL BUILDINGS. THESE BUILDINGS PROVIDE LONG-TERM AFFORDABLE COMMERCIAL SPACE FOR SMALL, LOCAL, AND MINORITY OWNED BUSINESSES ALONG WITH AFFORDABLE SENIOR HOUSING. THE BUILDINGS ARE LOCATED AT 852 SELBY AND 940 SELBY IN ST. PAUL. THERE ARE A TOTAL OF 34 UNITS OF LOW-INCOME SENIOR HOUSING. THE THIRTY-FOUR UNITS OF AFFORDABLE SENIOR HOUSING WILL BE BUILT ON THE TOP TWO FLOORS OF THESE BUILDINGS, AND WERE FINANCED BY A COMBINATION OF DEFERRED LOANS AND LOW INCOME HOUSING TAX CREDITS. THE UNITS ARE AFFORDABLE TO THOSE AT 30% TO 60% OF THE AREA MEDIAN INCOME. THE AFFORDABILITY WILL BE SECURED WITH RESTRICTIVE COVENANTS. THERE IS 9,300 SQUARE FEET OF COMMERCIAL SPACE. THERE ARE FIVE COMMERCIAL SPACES AND TWO LIVE WORK UNITS. THE HOUSING PORTION OF THIS PROJECT IS OWNED BY THE CHDC RONDO LIMITED PARTNERSHIP. RONDO DEVELOPMENT ON SELBY LLC IS A CO-GENERAL PARTNER IN THIS LIMITED PARTNERSHIP. THE COMMERCIAL PORTION IS FULLY OWNED BY RONDO SUBSIDIARY AS OF JANUARY 1, 2020.