Freddie Mac Duty to Serve & Community Land Trusts
Freddie Mac is committed to helping to increase homeownership opportunities for very low-, low- and moderate-income families in underserved markets under their Duty-To-Serve Plan. Recognizing that shared equity homeownership providers, including CLTs, make permanently affordable homeownership possible, Freddie Mac has created mortgage offerings that allow CLTs and lenders increased access to credit for families with low and moderate incomes. For more information on Freddie Mac’s Duty to Serve Community Land Trust Mortgages, click here.
CLT Certification Program – Helping to Preserve Affordable Homeownership
The Florida Housing Coalition and Freddie Mac are proud to offer the CLT Traning and Certification Program. Ensuring affordable housing now and for future generations by bringing community land trusts to scale. The CLT Mortgage Certification Program provides the confidence lenders want coupled with the loans borrowers need – all parties will benefit from the standards that come from the program.
Program Overview
The CLT Training and Certification Program consists of three phases: training and an organizational evaluation, an assessment of the CLT’s readiness to work with Freddie Mac CLT Mortgages, and certification.
Training and Evaluation
The Florida Housing Coalition will conduct on-site training covering core components and best practices for CLTs as well as general best practices for effective nonprofit or program operations. Core components include utilization of a standard ground lease, financial stability, and stewardship measures that preserve affordability and help homeowners avoid foreclosure. CLTs will also have the opportunity to receive technical assistance to improve current operations.
Freddie Mac CLT Mortgage-Readiness
Lenders must underwrite mortgages in accordance with Freddie Mac’s mortgage requirements for loans made to CLT homebuyers. As an interested party to the mortgage transaction that is involved pre- and post-purchase, CLTs must also be assessed to ensure they can carry out effective stewardship activities. The Florida Housing Coalition will evaluate the CLT to ensure that it meets Freddie Mac’s eligibility requirements and that its ground lease conforms to national models.
Certification
CLTs that participate in the training program and meet all the program requirements will be designated as a Certified Community Land Trust. Certified CLTs that demonstrate excellence in the implementation of industry best practices will earn a Gold Standard Certification. Certified Community Land Trusts benefit from their partners knowing that the CLT has attained a level of distinction which assures that their support is well-placed.
Click below for a detailed program description including the procedures for training and certification.
CLT National Pilot Program Launches
The Florida Housing Coalition has accepted the following into the CLT Training and Certification program: Community Land Trust of PBC, Delray Beach CLT, Habitat for Humanity of Marion County CLT, ROOF, Collier County CLT, and Tallahassee Lenders’ Consortium. The first cohort of community land trusts will engage in CLT specific and general nonprofit capacity-building training and upon meeting the program criteria, will become certified CLTs. Learn more about the program benefits here.
If you are interested in learning more about the Florida CLT Training and Certification program or if you have questions about the application, please contact Ashon Nesbitt at
Nesbitt@flhousing.org.
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