For many in Nevada County, the dream of owning a home has become out of reach. High rents strain budgets, make it extremely difficult to save up for a downpayment on a mortgage, and, in some cases, threaten housing security. The cost of housing is more than what middle to lower income households can afford, with nearly half of our residents paying more than the recommended 30% of their income on housing1.
NevCo West Community Land Trust formed to address what has become a pervasive housing crisis, with the sole mission to build homes within reach of what working people in our county can afford. Now, less than one year since obtaining its nonprofit 501(c)(3) last September, its first housing project is just about completed, featuring four homes that will be affordable to lower income households earning under 80% of area median income—without subsidy, and without the use of public funds to do it.
The land and construction financing was provided by social impact investors who share the vision for making housing affordable to everyone. The first phase of the project features two duplexes (a primary dwelling with attached ADU), each on a 1.5 acre parcel. The second phase will add a detached ADU on each parcel, for a total of six units. Located in a family neighborhood, walkable to Penn Valley town center, Gateway Park, the school, restaurants, and essential services, the units are intended for lower income families. The smaller two-bedroom units were designed for young couples just starting out and single parent households. Larger units feature en suites with bonus flex spaces for home office or play space. Secure access between units enables a duplex to be shared by multigenerational households.
Led by NevCo West CLT founder and President Tracy Huston, the project was designed to be built affordably and, thus, to enable prices below market rates. Ahead of schedule and under budget, smart design and project management has kept construction costs well below the norm at $180 per square foot, with total finished cost including the land, permits and fees, infrastructure, and construction financing at about $365 per square foot. “Optimizing density on single family zoned parcels, with up to 3 units allowed under state law, reduces the cost per unit significantly,” says Huston. “For this project, the units share the cost of the land as well as a central driveway, water systems, sewer, and electric service.” Even at the low cost, the homes feature high quality construction, with fire-resistant stucco siding, standing seam metal roofs, solar, and energy-efficient appliances, including ductless minsplits for heating and cooling.
All units will be sold at cost to ensure affordability. To preserve affordability for the lifetime of the properties, the land was donated by the Bundy Family to NevCo West CLT, who restricts rent and resale rates via a 99-year ground lease that prohibits increases to no more than the rate area median income increases. “Our goal is to keep the cost of housing aligned with what middle to lower income people earn and can afford,” says Huston. “Owners can build equity and enjoy some appreciation. And investors can yield a decent return even at below market rental rates. We simply remove the properties from the speculative marketplace to keep costs in balance with incomes.”
NevCo West CLT is currently forming a housing cooperative to enable the sale of units to individual owners. The housing co-op will also reduce the ongoing costs of home ownership through sharing maintenance and utility expenses. The first phase will likely be sold to social impact investors to keep as rentals while the CLT is securing co-op financing for future resident owners, with the goal to provide pathways to home ownership.
To learn more about community land trusts and the NevCo West CLT, see www.nevcowestclt.org
For more information about the Penn Valley homes, contact Tracy@nevcowestclt.org
About NevCo West Community Land Trust
NevCo West Community Land Trust, a nonprofit 501(c)(3) housing corporation, was founded in 2024 to address the need for housing for low to moderate income people in Western Nevada County. While the county has made great strides in providing emergency shelter and transitional housing for very low income households, as well as permanent supportive housing for the people who need ongoing support, there remains a gap: housing affordable to young people and families just starting out, for our teachers and farmers and fire fighters, for our elders on fixed incomes, and the minimum wage earners who keep our restaurants and coffee shops and grocery stores running. For our neighbors who earn too much to qualify for subsidized housing and yet not enough to afford the high market rates, NevCo West CLT provides a solution.
1 Nevada County Housing Element