Rep. Perriman pitches bonus points for community land trusts to boost affordable homeownership
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Summary
Rep. Perriman introduced HF3600 to give jurisdictions that establish community land trusts up to 5 percentage-point bonus scoring from the Minnesota Housing Finance Agency; testimony from land-trust advocates highlighted long-term affordability and state investments in CLT homes.
Rep. Perriman introduced House File 3600 to the House Housing Finance and Policy Committee, proposing that the Minnesota Housing Finance Agency give up to 5 percentage points of additional scoring in competitive development programs to cities and townships that establish community land trusts.
The bill’s sponsor said the change is intended to incentivize local jurisdictions to create community land trusts (CLTs), a model in which land is held in trust for community benefit while homeowners own and build equity in their homes. "Community land trusts are a viable solution to building affordable housing," Rep. Perriman said.
Jeff Washburn, administrator of the Minnesota Community Land Trust Coalition, testified in support. He told the committee Minnesota has 14 community land trusts, "and just over the last 12 years, the state of Minnesota has invested over $106,000,000 in affordability and development gap investments into community land trust homes across the state." Washburn described CLT resale restrictions and an appraisal-based formula that preserves long-term affordability while allowing homeowners to receive a share of appreciation.
Committee members expressed support but urged coordination with the Minnesota Housing Finance Agency on scoring details. Co-chair Howard encouraged consultation with the agency, saying that while the committee had pursued scoring changes in past sessions, agency input is important to implementation. Chair Igoe described a local CLT partnership in Grand Rapids that brought together banks, contractors, unions and nonprofits to convert an old elementary school site into permanently affordable homes.
Rep. Perriman said the bill is designed to help a wide range of households, including younger buyers, and that he will continue to work with Minnesota Housing on the draft. The committee laid HF3600 over for possible inclusion; no final action was taken today.
The committee did not record a formal vote on HF3600; the bill was laid over for further work.