Question 1

¿Puedo refinanciar mi préstamo hipotecario? ¿Si es así, cómo?

Accepted Answer

The short answer is, yes. The detailed answer is:

The Ground Lease that is issued with each home sale contains refinancing details (Section 8.3). It states, "If, at any time subsequent to the purchase of the Home and signing of the Lease, the Homeowner seeks a loan that is to be secured by a mortgage on the Home (to refinance an existing Permitted Mortgage or to finance home repairs or for any other purpose), the Homeowner must inform CLT, in writing, of the proposed terms and conditions of such mortgage loan at least 30 days prior to the expected closing of the loan."

The information to be provided to the CLT must include:
1. The name of the proposed lender,
2. Homeowner's reason for requesting the loan,
3. The principal amount of the proposed loan and the total mortgage debt that will result from the combination of the land and existing mortgage debt, if any,
4. Expected closing costs,
5. The rate of interest,
6. The repayment schedule, and,
7. A copy of the appraisal commissioned in connection with the loan request.

Question 2

¿Qué son las mejoras de capital? ¿Cuál es el procedimiento para obtener la aprobación de una mejora de capital?

Accepted Answer

A capital improvement is an optional improvement to the home; it is something that will add value to the home. Some examples include a garage addition, a kitchen or bathroom remodel, a basement or attic conversion, or an addition to the home which adds to the living space of the existing home.

Before a homeowner can begin a capital improvement project, written approval must be given from Two Rivers CLT. There are two reasons for this:

1. The land trust needs to see the home remain permanently affordable so will view all requests for capital improvements in terms of the value added to the home and whether this additional value makes the home unaffordable in the future.
2. All costs for any capital improvement projects are fully paid by the homeowner, with the homeowner's own funds. Therefore, the additional value added to the property as a result of the improvement will be subtracted from the shared equity at the time of resale. Equity is the difference in value from the time of purchase to the time of resale. The homeowner's share of this appreciation is 25% and any value related  to the capital improvements done by the homeowner would be subtracted from the shared equity, which means a larger equity portion for the homeowner.
      		
Pre-approval from Two Rivers CLT is required before undertaking a capital improvement. This is detailed in the Ground Lease, which states:
"For any construction requiring CLT's written consent, Homeowner shall submit a written request to the CLT. Such request shall include:
1. A written statement of the reasons for undertaking the construction,
2. A set of drawings (floor plan and elevations) showing the dimensions of the proposed construction,
3. A list of the necessary materials, with quantities needed,
4. A statement of who will do the work.
If the CLT finds it needs additional information it shall request such information from Homeowner within two weeks of receipt of Homeowner's request. The CLT then, within two weeks of receiving all necessary information (including any additional information it may have requested) shall give Homeowner either its written consent or a written statement of its reasons for not consenting. Homeowner shall provide CLT with copies of all necessary building permits and execute The Qualified Capital Improvement Plan before construction can begin."

Question 3

¿Cuál es la diferencia entre el mantenimiento del hogar y una mejora de capital?

Accepted Answer

Maintenance of the home involves regular and routine tasks done to keep the property in good working condition and in good cosmetic condition. It is required to be done by the homeowner and this is stipulated in Section 7.5 of the Ground Lease. In addition to being responsible for services such as the utilities that serve the property, the homeowner is to make all necessary repairs and replacements while owning the home (repairs that keep the home functional, operational, code related - similar to how the home was provided at purchase). If the homeowner does not maintain the home, the homeowner may be required to make repairs at the time of sale, as spelled out in section 10.13 of the Ground Lease.

A capital improvement, however, is an optional improvement to the home and will add value to it. Some examples of capital improvements include a garage addition, a kitchen remodel, a bathroom remodel, a build-out or conversion of a basement or attic, or a small addition to the existing home -- all of which add to the living space and therefore would potentially increase the value of the home beyond comparable homes in the same area. 
Pre-approval is required for a capital improvement, as spelled out in the Ground Lease.

Question 4

¿Cuál es el proceso para que un propietario venda su casa en fideicomiso de tierras?

Accepted Answer

Section 10 of the Ground Lease discusses selling your home. The first step in the process is to notify Two Rivers in writing of your intention to sell the property. Then Two Rivers will commission an appraisal to determine the current value of the home. This information is used to calculate the resale price. Two Rivers will pay for only one appraisal for this purpose over the course of ownership. Once the appraisal is in, the resale price will be calculated and the property is marketed by the owner. Interested applicants complete a pre-application through Two Rivers. Two Rivers handles all the qualification of prospective buyers and notifies the owner when there is an approved buyer who plans to submit an offer on the home.

Question 5

Si necesito un contratista para las reparaciones y el mantenimiento de mi hogar, ¿puedo comunicarme con Two Rivers para que me ayude a encontrar uno?

Accepted Answer

Yes. The staff at Two Rivers will be happy to provide options for who to contact for home repairs and maintenance. Of course, you are not required to use them; Two Rivers only provides this if requested.

Question 6

Quiero ser dueño de una casa, pero no tengo experiencia con lo que se requiere para cuidar una casa. ¿Qué información de mantenimiento del hogar está disponible para ayudarme?

Accepted Answer

The idea of owning a home can be overwhelming. Maintenance is needed to keep a home in good condition and running well. But it doesn't have to be intimidating. The whole point of "maintenance" is to take care of the home on a regular basis, so little problems don't become big problems.

Two Rivers is in the process of developing more resources in the area of home maintenance for homeowners, that will be available on the website. However, a homeowner is always welcome to contact Two Rivers and request information and advice on caring for their home.

Question 7

Me gustaría revisar el costo de mi seguro de propietario de vivienda. ¿Existe una lista de agentes de seguros acreditados?

Accepted Answer

Two Rivers staff can provide homeowners with a list of reputable and fair insurance agents in the area.

Question 8

En una tormenta reciente, un gran árbol cayó en el patio. ¿De quién es la responsabilidad de la remoción ya que Two Rivers es dueño de la tierra?"

Accepted Answer

The first thing any homeowner should do when there is storm damage is to contact your homeowners insurance agent to see if removal is covered under this policy. If it is not, then contact Two Rivers, as they may have other ideas or options depending on the nature of the damage.

Question 9

¿Cuál es el proceso para transferir mi casa a mis hijos (herederos) al momento de mi muerte?

Accepted Answer

As stated in the Ground Lease, Section 10.3: “If Homeowner dies (or if the last surviving co-owner of the Home dies), the executor or personal representative of Homeowner’s estate shall notify CLT within ninety (90) days of the date of the death. Upon receiving such notice CLT shall consent to a transfer of the Home and Homeowner’s rights to the Leased Land to one or more of the possible heirs of Homeowner listed below as “a,” “b,” or “c,” provided that a Letter of Agreement (as described in Article 1 of the Ground Lease) are submitted to CLT to be attached to the Lease when it is transferred to the heirs.
 
a)    the spouse of the Homeowner; or
b)    the child or children of the Homeowner; or 
c)    member(s) of the Homeowner’s household who have resided in the Home for at least one year immediately prior to Homeowner’s death.

Article 1 of the Ground lease addresses the Homeowners Letter of Agreement and the Attorney’s Letter Acknowledgement and pertains to the Homeowner’s understanding and acceptance of the Lease.”

Question 10

¿Qué debo hacer si tengo dificultades con el pago de mi casa?

Accepted Answer

Two Rivers strives to maintain helpful resources for CLT owners, and financial counseling is one of those resources. Please let Two Rivers know right away if there is something happening in your life and you are having trouble making your house payments, if you are struggling with your finances, or if the homeowner needs to make payment arrangements on the ground lease payments. Two Rivers wants to be a partner and advocate on your behalf. Below is a list of financial/foreclosure counselors who are free, confidential, trained and professional advisors. Two Rivers also has other resources depending on your need.
 
Homeownership Center, 651-659-9336, https://www.hocmn.org/search-help/?fwp_audience_services=foreclosure-prevention-advice (https://www.hocmn.org/search-help/?fwp_audience_services=foreclosure-prevention-advice)

Neighborhood Development Alliance (NeDa), 651-292-0103, https://nedahome.org/(https://nedahome.org/)

Neighborworks, 651-292-8710, https://nwhomepartners.org/keep-your-home/(https://nwhomepartners.org/keep-your-home/)

Question 11

¿Cómo funciona la fórmula de reventa? ¿Cómo se determina mi patrimonio?

Accepted Answer

The appraisal, which establishes the current value of the home with the land, is compared to the original appraised value of the home and the land at the time of purchase. The difference between the two appraisals is the appreciation. The homeowner equity (25% of this appreciation) is added to the original purchase price to establish the new selling price. Here is an example how the resale formula works:

Appraised value of home and land at time homeowner wants to sell:  $ 176,000
Appraised value of home and land at time of original purchase:  $ 160,000
Value difference = appreciation:  $ 16,000
Home owner equity (25% of the appreciation):  $ 4,000
 
Price homeowner paid for home (without land):  $ 125,000
Plus homeowner share of the appreciation:  $ 4,000
Equals new sale price:  $ 129,000