What Palmetto Real Estate Trust Does and How It Works

Palmetto Real Estate Trust is a South Carolina nonprofit that helps people buy homes through a shared-ownership model

Palmetto Real Estate Trust operates a community land trust (CLT) based in South Carolina. Instead of buying a house outright, you purchase the building while the trust holds the land underneath it. You own the structure; the trust owns the ground. This arrangement keeps home prices lower than traditional purchase because you are not paying for the land itself.

The trust resells homes at below-market rates to income-may have access to buyers. When you sell your home later, the trust has a right of first refusal and can resell it to another may have access to buyer at a price set by a formula. This keeps the home affordable for the next buyer, and the cycle continues. You build equity in the building you own, but the land stays in trust control permanently.

Key Takeaways

• Palmetto Real Estate Trust sells homes where you own the building but the trust owns the land, lowering your purchase price compared to traditional home sales.
• You must meet income limits to purchase through the trust, and these limits vary by property location and household size.
• When you sell, the trust can repurchase the home and resell it to another income-may have access to buyer, keeping it affordable long-term.
• Monthly payments typically include your mortgage on the building, property taxes, insurance, and a ground lease fee to the trust.
• The trust operates in specific South Carolina neighborhoods; you cannot use this model everywhere in the state.

How the shared-ownership model works in practice

You sign two separate documents: a deed to the building and a ground lease for the land. The ground lease is typically 99 years, which means you and your heirs can occupy and own the structure for nearly a century. The lease includes a small annual fee paid to the trust, usually between $50 and $200 per month depending on the property and the trust's operating costs.

Your monthly housing payment covers your mortgage (the loan on the building), property taxes, homeowners insurance, and the ground lease fee. You are responsible for all maintenance and repairs to the building itself. The trust maintains the land and handles property management for the overall community.

If you want to sell, you notify the trust first. The trust has a set period—usually 45 to 90 days—to decide whether to repurchase. If the trust buys it back, they resell to another may have access to buyer. If the trust declines, you can sell on the open market, but the buyer must assume the ground lease, which limits who can purchase.

Income requirements and who can purchase

Palmetto Real Estate Trust serves households earning between 60 and 120 percent of the area median income (AMI), though the exact range depends on which property you are interested in and your household size. Area median income is calculated by the U.S. Department of Housing and Urban Development and varies by county. A three-person household in one neighborhood might have different income limits than a three-person household ten miles away.

You must provide recent tax returns, pay stubs, and bank statements to document your income. The trust verifies this information before you can purchase. First-time homebuyers are often prioritized, but the trust also works with repeat buyers who meet the income limits.

Properties and neighborhoods where Palmetto Real Estate Trust operates

Palmetto Real Estate Trust focuses on specific neighborhoods in South Carolina, primarily in the Lowcountry and Charleston area, though the organization has expanded to other regions. Properties are typically single-family homes or townhouses, not apartments or condos. The trust acquires properties through purchase or donation, then resells them to may have access to buyers.

You can view available properties on the trust's website or contact them directly to learn which neighborhoods currently have homes for sale. Inventory changes as homes are purchased and resold, so availability is not constant. Some properties may be under renovation when the trust acquires them, which can delay resale.

Costs, fees, and what to expect financially

Your total monthly housing cost is typically 25 to 35 percent lower than buying a comparable home on the traditional market, because you are not financing the land. However, you still pay property taxes, homeowners insurance, and maintenance costs like any homeowner. The ground lease fee is separate from property taxes and is paid directly to the trust.

Closing costs are lower than a traditional home purchase because there is no land sale involved, though you will still have some legal and inspection fees. The trust can sometimes help connect you with down payment assistance programs or other resources, but this varies by property and your situation.

When you sell, you keep the equity you built in the building. The trust's resale formula ensures the next buyer also gets an affordable price, but it also means your resale price may be lower than what you would receive on the open market. This is the trade-off for keeping the home affordable long-term.

How to contact Palmetto Real Estate Trust

You can reach Palmetto Real Estate Trust through their website, which lists current properties, income limits, and application information. They also have a phone number and email for questions about specific homes or the program itself. Many local housing nonprofits and community development organizations in South Carolina can refer you to the trust if you are interested in learning more.

The trust staff can walk you through the process, explain the ground lease, and answer questions about monthly costs and long-term ownership. They can also connect you with mortgage lenders who understand community land trusts and can finance the building portion of your purchase.

Frequently Asked Questions

Can I get a traditional mortgage on a community land trust home?

Yes, most lenders will finance the building portion of your purchase. The ground lease is recorded with the deed, so the lender knows about it. Some lenders specialize in CLT financing, and Palmetto Real Estate Trust can recommend lenders who understand the model. Your down payment and credit requirements are similar to a traditional home purchase.

What happens to my home if I cannot pay the ground lease?

The ground lease is part of your property obligations, like property taxes. If you fall behind on the lease payment, the trust can take legal action, similar to a tax foreclosure. The trust wants you to succeed as a homeowner, so contact them immediately if you are having trouble making payments—they may have resources or payment plans available.

Can I rent out my community land trust home?

This depends on the specific ground lease and the trust's policies. Some trusts allow rental with restrictions; others do not. Check your lease documents or ask Palmetto Real Estate Trust directly before you purchase. If rental is allowed, there may be rules about tenant income or lease terms to keep the home affordable.

What if I want to leave the home to my children?

You can pass the building to your heirs, and they can assume the ground lease. The 99-year lease term means your children and grandchildren can own and live in the home. If your heirs want to sell, the same resale process applies—the trust has first right to repurchase at the formula price.

How is a community land trust different from renting?

You own the building and build equity with each mortgage payment. You control maintenance and improvements. You can pass the home to heirs. With renting, you build no equity and have no ownership stake. The trade-off is that your resale price is set by a formula rather than market value, keeping the home affordable for future buyers.