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calculated by adding only 25% appreciation to the original sales price of the home. The need to continually re-subsidize (i.e.: lose affordability due to real estate speculation) is therefore eliminated. Any subsidy is recycled again and again. Most importantly, this affordable housing option gives low and moderate households the opportunity to earn equity in real estate they would not have had if they continued to rent their housing. Board members and paid staff The Rondo CLT was developed by and is directed by community residents. The Board of Directors is comprised of 12 members; four leaseholders, four community residents and four open positions. Rondo CLT has two full-time staff persons and has the additional assistance of University/College interns that help with research and other special projects. Description of Programs: The Hip Program The HIP program now has land trust owners in over half a dozen neighborhoods in Saint Paul. In 2006, ten more families are expected to purchase a home through this program. Participating households will receive an average of $20,000 in purchase price write down assistance, depending on household size, the number of wage earners in the household and the households’ annual income. This means that with the average grant, a homeowner that could hypothetically afford a mortgage loan of $130,000 would be able to purchase a home for up to $150,000. The purchase price write-down can be used for down payment, closing costs and to reduce the amount of mortgage financing a family needs to purchase their homes. Rondo CLT wants to ensure that homes purchases through HIP are structurally safe and sound. Realizing that many houses on the market in Saint Paul are older homes in need of repair and that new homeowners are not typi cally in a financial position to be able to afford significant improvements, Rondo CLT also includes a free home inspection and rehabilitation grant with HIP. A rehab grant for up to $25,000 ensures that homes purchased through HIP are safe as well as structurally and mechanically sound. The grant can be used to pay for things like electrical and plumbing updates, a new roof, a new furnace, new windows and doors, asbestos and lead abatement and insulation updates. The benefits of the rehab grants are immense because homebuyers participating in the program can feel comfort in knowing that an expensive house repair will not threaten their financial security in their first years of homeownership. In 2003, Rondo CLT began incorporating energy audits, insulation updates and post- purchase energy education into the homebuyer Initiated Program. Based on lessons learned from the first homes purchased through the program, Rondo CLT sees the value of adding these energy saving measures to HIP. The energy audit helps Rondo CLT determine improvements that are necessary to keep the cost of heating and cooling affordable. Once the home is properly updated, the auditor returns to the home to explain to the homeowners how to keep heating and cooling costs to a minimum. The HIP/HOP Program The Rondo CLT has formed a partnership with Thompson and Associates to create a pilot program called HIP/HOP (Homebuyer Imitative Program/ Home Ownership Program). HIP/HOP will serves families that ar e currently in St Paul Public Housing or