The SCLT parent organization, Sitka Community Development Corporation (SCDC), was started in 2006 by private citizens responding to the lack of affordable housing in the City and Borough of Sitka. In its Articles of Incorporation, its purpose is "promotion and facilitation of affordable housing for persons of low and moderate income in the City and Borough of Sitka and elsewhere in Southeast Alaska." SCDC received their 501(C)(3) status from the IRS in 2008. Incorporated in the State of Alaska, SCDC is also a Community Land Trust working on providing the community of Sitka with permanently affordable housing. In 2014, the organization created the Community Land Trust program and in 2016 the board changed the organization name to the "Sitka Community Land Trust" or SCLT.
SCLT has determined that it will restrict its permanently affordable housing to households within incomes below 120% of Sitka median income, adjusted for family size. However, the Halibut Point Cottages project requires serving households with low income, or 80% of AMI. Additionally, due to the urgency of local needs, SCLT will target senior households as well as households that are, by federal definition, “low-income” – i.e., households with incomes below 80% AMI – consistent with its IRS designation as a tax-exempt, “charitable” organization. Our goal is to provide affordable home ownership. The sales price must be affordable to the new purchaser. A sale is affordable when no more than 32 percent of the new purchaser’s income is used to pay the fixed costs of owning a home (that is, loan payments of principal and interest, taxes and insurance, generally called PITI), or all housing expenses (including PITI, land lease or dues, utility expenses and a reasonable maintenance reserve) do not exceed 40 percent of the new purchaser’s income. HUD Annual Income Limits. 80% numbers come from: HUD.
FY 2017 INCOME LIMITS SUMMARY (U.S. DEPARTMENT OF HUD 05/2017)