Homeownership. It’s the cornerstone of the American dream. But many people feel it’s a dream getting further and further out of reach.
However, the city and nonprofits are pushing a multi-pronged approach to bring affordable housing to those who need it most.
The Raleigh Area Land Trust (RALT) provides affordable housing for low-to-moderate-income families across the city. The nonprofit purchases the land and then sells the home to people in a lower income bracket.
“That model keeps the property affordable permanently by taking land out of the equation and also brings the purchase price down for the current buyer,” RALT’s Executive Director Kevin Campbell said.
More than a year ago, James Watson became the first person who bought a home through RALT. A lifelong maintenance worker, he’s struggled to attain homeownership.
“I never thought I’d be able to afford one,” he said. “Everything came together.”
Over the last few years, Raleigh has seen home prices and property values increase, with the city of Raleigh expecting property tax increases this year despite a lower tax rate.
However, since RALT owns the land, the nonprofit makes sure anyone who buys their home doesn’t worry about that.
“They pay taxes just on the building and not on the land. So it might save half of their property tax costs,” Campbell said.” That’s a big issue for families right now. That, and then the land trust would be responsible for taxes on the land, except we’re a nonprofit, so we’re exempt from those taxes as well.”
RALT sold two homes in southeast Raleigh in 2023. Now, they have 22 units in the development process, 18 of which are in Raleigh.
“They’re right next to each other in southeast Raleigh,” Campbell said.
The trust makes sure all homebuyers have to pay for a nominal lease, and they face some responsibilities and restrictions.
“My job is to keep the land up,” Watson said.
Monday is National Nonprofit Day, and Campbell said RALT welcomes any donations, as tackling affordable housing is complex and expensive. For Watson, it’s not only about having peace in his home; it’s also about leaving a piece for the next generation.
“Just like anything you build, you’ve got to put it together,” he said.
