Our People, Our Purpose: Closing to Gap to Homeownership

In today’s housing market, the dream of owning a home can feel out of reach for many, especially with rising home prices outpacing incomes. That is where the Partnership Community Land Trust (PCLT) steps in. PCLT is a program of the Southwest Minnesota Housing Partnership that offers a proven path to affordable homeownership by addressing the “affordability gap” — the difference between what a home costs and what a qualified buyer can safely afford. Through a combination of public and private funding, the PCLT lowers the price of homes up front and applies additional support when needed to make sure homes are truly within reach.

A Community Land Trust (CLT) is a unique and growing model across the United States that separates the cost of the land from the cost of the home. Buyers own their homes and build equity, but the land remains in trust, ensuring permanent affordability for future generations. This structure helps reduce barriers to homeownership today while preserving opportunity for tomorrow. When homeowners decide to sell, they agree to a resale formula that keeps the price affordable for the next income-qualified buyer, while still allowing them to earn a portion of the home’s increased value.

Since 2008, the Partnership Community Land Trust has helped dozens of families become homeowners in southern Minnesota, and it is growing. With 35 homes currently in the program and a goal to expand to 100 over the next five years, PCLT is making a real impact in communities like St. Peter, where new builds are underway, and in Mankato, where planning is in progress for the Good Counsel site and beyond. Buyers must meet income eligibility guidelines and complete homebuyer education to participate, but the reward is a stable, affordable path to homeownership and long-term community investment.

At its heart, PCLT is about equity, not just financial but social. By increasing access to affordable homes, the program supports diverse, stable neighborhoods and helps address long-standing disparities in homeownership. It is a collaborative effort between cities, developers, lenders, and community members who all share the goal of making homeownership possible for more families, now and into the future.