The City of Bellingham and Kulshan Community Land Trust (KCLT) sponsor a program that helps low-and moderate-income households purchase single-family homes in Bellingham.
KCLT acquires land and provides a long-term lease to the homebuyer, while the City provides a zero interest, deferred payment loan for the down payment on the house purchase. A commercial bank provides the primary loan for the purchase of the house.
"Low-income household" means those with annual incomes that do not exceed 80% of the median income for Whatcom County -- as determined by HUD -- with adjustments for smaller and larger households. Eligible households must not have owned a home in the past three years, unless a member of the household qualifies as a "displaced homemaker or single parent". The home must be the home buyer's principal residence -- renting is not permitted.
The City loan is due upon the sale of the home, change of use, or failure to comply with the terms of the promissory note or deed of trust. Homes acquired under this program must not exceed a maximum value as set in the HOME program regulations. Non-sale transfers resulting from marriage, divorce, death of a spouse, or a transfer otherwise permitted by applicable federal law will not require repayment provided the transferee agrees to assume all the transferor's obligations. The loan may be assumed, at the City's option, if, upon resale, the house is purchased by a buyer whose family qualifies as a low-income family and who will use the property as its primary residence. Any assumption of loan will be subject to the requirements of the HOME Program regulations. For further information on this program, contact Kulshan Community Land Trust or the City's Community Development Division.
The Demonstration Program for Innovative Permanently Affordable Home Ownership will allow a qualified organization to earn an increase of up to 50% in the number of total single family housing units allowed on a residential building site if all of the homes fit the character of the existing neighborhood, receive design review approval, and are sold, in perpetuity, to income-qualified individuals as permanently affordable homes. Projects applied for under this ordinance will not be approved unless the organization can demonstrate, to the satisfaction of the Bellingham Planning Director and City Council, an insured ability that the homes will be sold to income qualified individuals or families, and all sales, in perpetuity, will be tracked, monitored, and reported to the City Council on an annual basis to ensure compliance with the ordinance.
