The Houston Community Land Trust landed a $5 million grant from billionaire philanthropist MacKenzie Scott. The grant aims to provide Houstonians with affordable housing through pilot programs that will test new housing models for multi-family affordable rentals, commercial spaces and homeownership.
“We hope these pilot projects will demonstrate the various ways we can address affordable housing. We are excited to partner with several community organizations and housing experts to develop these projects as we continue our commitment to increasing affordable housing throughout the city,” Dr. Ashley Paige Allen, executive director of the nonprofit organization said.
The dollars from the grant are “unrestricted,” which means non-profit teams can use them as they seem fit.
Allen plans on embarking on projects like helping families repair their homes and minimize their taxes and in commercial property, which would reduce the rent burden costs for small local businesses, and in tiny homes, which could have a sale price of around $55,000 to $65,000.
More than 300 Community Land Trusts (CLTs) across the United States use the organization’s housing model for multi-family housing, commercial spaces, farms, and public greens spaces and wants to expand its model outside of traditional single-family homeownership, she added.
CLTs are nonprofit, community-based organizations that are primarily used to provide long-term housing affordability and are governed by a board of directors made up of housing residents, community representatives, and members of the general public.
The Houston CLT is currently one of the fastest growing CLTs in the country, which has supported other cities in the development of affordable housing models. The organization says its mission is to provide affordable homeownership and affordable housing to limited-income households in Houston by connecting qualified homebuyers with affordable homes and developing affordable rentals in neighborhoods across the city.
It has also helped families, particularly belonging to communities of color and historically excluded groups, according to a statement. Houston CLT says it has been able to make homeownership affordable with monthly mortgage payments including taxes and insurance under $1,050 per month and pledges to assist an additional 15 families before the end of 2023.
While addressing the housing needs of the city’s population, the grant will aid its fundraising efforts for the expansion of its single-family Homebuyer Choice Program.
Through this program, a qualified homebuyer can receive up to $150,000 or $100,000 in financial assistance grants to aid in lowering the cost of buying a home in Houston, which meets the program criteria.
Scott, who received a 4% stake in Amazon after her divorce with founder Jeff Bezos in 2019, signed the Giving Pledge – vowing to donate at least half her wealth.
She established Yield Giving, a website where she shares the details of her donations. According to this website, Scott has given more than $14 billion to over 1600 nonprofit organizations.
“I have no doubt that tremendous value comes when people act quickly on the impulse to give. No drive has more positive ripple effects than the desire to be of service,” she says in her giving pledge.
According to Realtor.com, Houston’s home prices were up 1.4% as of September 2023, compared to last year, and selling for a median price of $325,000. The home value of a house in Houston is $263,147, down 0.4% over the past year.
Home sales in the city have also been going down, for the 18th straight month in September, owing to high interest rates. Prospective homebuyers are opting to rent, which enabled inventory to increase and prices to moderate. The only wait is for buyers to feel confident again, says the Houston Association of Realtors.
Scott donated $3 million to Houston’s Collaborative for Children, a non-profit organization dedicated to early childhood education in June, and $4.2 Million to Houston Area Urban League.
