3109-B NE Broadway
Portland, OR, 97232
(503) 493-0293
Frequently Asked Questions about Homeownership through PCLT
What is Portland Community Land Trust?
Portland Community Land Trust (PCLT) is a state-certified nonprofit organization that provides affordable homeownership opportunities for people who work and live in our community.
What do we do?
Working with community partners, lenders, builders, and others, we prepare families and individuals for homeownership; help them purchase existing homes at affordable rates; build new affordable homes; offer homeowners tools to be successful; and, we help manage the buying and selling of affordable homes.
What makes PCLT different?
With ever-rising prices, we believe that the best way to ensure that our children - and their children - have opportunities to buy a home is to keep homes affordable. So, a home bought through PCLT is affordable today and it will be affordable for future generations.
How are homes kept permanently affordable?
In exchange for a reasonable purchase price (about $60,000 to $100,000 less than a market-rate home), homeowners ensure that future buyers also have a chance to own an affordable home by limiting the home's appreciation. This way, owners enjoy increasing property values and the other rewards of homeownership - and they gain equity - while passing the affordability on to the next owner.
Permanent affordability is guaranteed through a lease agreement or an affordability contract between PCLT and the homeowner. Homebuyers review either of these legal agreements with an attorney independent of PCLT to understand all the details before buying a home.
For those who are locked out of homeownership the traditional way in today's market, PCLT offers a sure road to equity and stability. In fact, more than 70% of homeowners who buy through programs like PCLT go on to purchase market-rate homes as their next home (note: these are findings from a national study; there have not been enough PCLT resales yet to measure this locally).
Who buys through PCLT?
Parents and children, grandparents, young couples and single folks. All kinds of people. PCLT homebuyers are first-time homeowners who are income qualified (see www.pclt.org/buy for details). They have steady incomes and access to credit, but incomes that are not high enough to purchase a home the traditional way in today's pricey market. Each PCLT homeowner shares an important goal: to own a home of their own.
Homeownership through PCLT is similar to traditional homeownership in that ...
- The homeowner has a mortgage with a bank.
- The homeowner accumulates equity.
- The homeowner enjoys the tax benefits of homeownership.
- The homeowner pays property taxes, though they may be less.
- The homeowner can make alterations and improvements to their home and yard.
- The home can be inherited.
Homeownership through PCLT is different in that ...
- The purchase price is much, much lower - usually about $60,000 to $100,000 less than a market-rate home.
- The homeowner resells at an affordable price while enjoying a fair return on his investment.
What about tax benefits?
PCLT homeowners pay all the taxes associated with the property. However, homeownership using a land lease means that the property is taxed at a greatly reduced rate, saving PCLT homeowners approximately 30% (note: this does not apply to ownership through the affordability contract, through which property taxes are full market rate). As with all Oregon homeowners, the property taxes and the interest portion of the mortgage payment are tax deductible on state and federal income taxes.
Want to learn more?
Attending a free orientation class is the best way to learn about our programs and is the first step toward buying a home through PCLT. Click here for a class schedule, or contact Paulette at paulette@pclt.org or 503-493-0294.