Land trust helps community buy homes

By BETH BAUMGARDNER
Collegian Staff Writer

Single mother Sarah Harding (junior-integrative arts) thought she and her 9-year-old son Jimmy would never be able to own their own home. Disabled in a car accident, Harding is unable to work a full-time job, so the family is on a tight budget and lives in cramped quarters.

But because of the State College Community Land Trust, 245 S. Allen St., Harding and her son may soon own a home, complete with both front and back yards.

The land trust purchases a home and the land it is built on. The program then sells the house to limited-income families; the land is paid for through the land-grant program.

The land trust owns the land, but it is covered by a 99-year lease, which is inheritable. If homeowners chose to sell their home, the land is still owned by the land trust and the house will be resold to another limited-income family.

By eliminating the cost of the land from the purchase price, about 30 percent of the cost is taken away, said Jerry Wettstone, chair of the board of directors.

For example, if the market price of a property were $85,000, homeowners would have a mortgage of $56,525 if the land cost were eliminated.

"The goal is to get homeowners into the borough who could not otherwise afford to be here," Wettstone said.

People on low incomes often have trouble finding homes priced for their budget. Landlords often purchase cheaper houses as soon as they go on the market with the intention of making rental units, said Janet Knauer, land trust and State College Borough Council member.

Although the program does not target any certain group, Penn State staff and students who are trying to live within the borough could benefit from the program, said Elizabeth Goreham, land trust and borough council member.

"I think a lot of students would like to not be renting but would like to have a house. I know I would," she said.

The council assists the land grant program, but it is handled separately, Goreham said.

The program is a subrecipient of federal and state grants given to State College, said Amy Roth, land trust executive director.

Program applicants must go through an in-depth evaluation to be approved for a home, Roth said. To be considered, candidates must be on a limited income and agree to go through budget counseling.

Harding said the counseling, which helped her develop a budget plan, has been very beneficial.

"I think it's great. The whole program is geared toward a positive direction," she said.

After counseling, candidates must apply for a loan. Jim Horner, vice president of Omega Bank, 117 S. Allen St., and member of the board, works with applicants to get loan approvals.

Once a loan is acquired, candidates can move in and begin making payments on their new homes.