Age in place solutions
CLAM can help make aging-in-place more affordable for seniors who qualify through creative application of the Community Land Trust model, which removes the cost of land from the cost of homeownership.
Retained Life Estate
One option for aging in place is a retained life estate. With a retained (or charitable) life estate agreement, you can sell or donate your residence or farm to CLAM while retaining the right to live there for life. Donors who enter a life estate agreement receive an immediate income tax deduction if the remainder interest in the home was donated outright or sold to CLAM at a “bargain” price. The tax deduction to the owner is based on the present value of the home discounted by the estimated remaining lifetime of the homeowner (which is the time when CLAM will receive full title to the home). To put it simply, a person age 70 will receive a larger deduction than will a person age 50, all other things being equal.
Meanwhile, the homeowner continues to enjoy full use of the home, including full responsibility for its care and upkeep and for payment of property taxes.
In September 2021, CLAM entered into a contract with a local homeowner in Point Reyes Station to purchase her property as part of a Retained Life Estate. This deal will benefit both the homeowner and all future residents in desperate need for affordable housing. The homeowner will be able to stay in her home, CLAM will undertake and pay for the immediately needed repairs, and the tenants in the two other units on the property will be saved from the displacement they would face if the owner were to sell on the open market. Once the property is transferred to CLAM, we plan to sell the homes at an affordable price, retaining the affordability that CLAM’s ownership of the land will ensure for all future owners. Learn more about this new Age-In-Place Home here.
Contact CLAM info@clam-ptreyes.org to see if this is a good choice for you.
Sell the ground to CLAM, keep the home
Another way CLAM can help make aging-in-place more affordable for seniors who qualify is through a creative application of the Community Land Trust model, which removes the cost of land from the cost of homeownership.
Here’s one example of how it could work:
You want to remain in your home, but also need to get some of the value from it. You decide to sell your home and the ground it sits on to CLAM for $500,000.
CLAM then splits the title and sells the improvements (the home) back to you for $300,000. CLAM continues to own the ground the home sits on.
You can then use the $200,000 proceeds of the sale to pay off a mortgage, to make repairs, to build an ADU from which you receive rental income and/or for living expenses.
If you do not sell the home, you can leave it to your heir(s), who may either choose to live there or to sell it (with the resale restrictions).
Contact CLAM info@clam-ptreyes.org if this might be a good choice for your situation.