Emily thaden am flexibitiy of clt model


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  • In this session, we’re going to talk about how flexible the CLT model and mission is in order to meet diverse, holistic, and comprehensive community development needs.
  • So how is the ownership arrangement structured?
  • The result of the ground lease, or the agreement between the CLT and homeowner, is that household is able to build wealth from paying off the principal of their mortgage loan and realizing some additional gains if the home increases in value. However, it also results in keeping the home affordable for buyer after buyer because the homeowner agrees to sell the home at resale-restricted price (not the market value of the home) so the home will be affordable for another lower income owner.
  • And while we talk about homeownership most frequently with CLTs, many CLTs use the same dual ownership arrangement…
  • …to provide other community assets, such as limited equity housing cooperatives or commercial spaces for small businesses.
  • Now exceptions to dual ownership are caused sometimes by the nature of the improvement’s use, such as rental properties whereby residents do not want to or cannot have an ownership interest. Other exceptions are caused by various laws that render a “ground lease” not usable. Therefore, other types of legal instruments may be used to preserve the community’s interests and the resident’s interests, BUT dual ownership is not technically a part of the arrangement. For instance, in most states in the US you cannot develop a condominium and use a ground lease because individuals do not have separate interest in the land. Therefore, deed-restricted covenants are use in place of a ground lease.
  • While there are lots of variations in the model and how it gets implemented. What defines a CLT is not really the model, but their commitment to their mission, which all CLTs hold themselves to. These mission-oriented principles include:retaining control of land for the community, stewardship to support residents of CLT properties and to steward the land and condition of buildings, Maintaining their assets as permanently affordableAnd providing community assets that will result in resident betterment for both CLT residents and those in the braoder community.
  • Ok, so for the rest of this presentation I am going to fly through examples and descriptions of how CLTs provide residential and non-residential property and how they can be used to proivde sustainable building and sustainable communities. This will be a very quick review but then we can jump in from there.
  • The key development considerations for a CLT when they are producing residential properties is to decide what the community needs and what fits best for the property or site they are bringing into the land trust. They need to ask What should be the rental or ownership arrangement?2) What should be the governance structure?3) Should the residents build wealth from their tenure?4) Should the property serve a specific population or need, such as seniors, veterans, or persons with disabilities?
  • So first, a CLT must consider ownership…
  • For government options, the CLT needs to decide their own governance and whether individual properties, esp multi-family properties, need their own goverance structure. For instance, coops and condos and subdivisions frequently have a non-profit homeowner association in charge of property management. Some rental properties may be structured very similar to cooperative and have resident-run property management.
  • Next, they need to decide whether they will include wealth-building potential for residents into the property. This is the typical for CLTs is to have some financial benefit from tenure for residents. This can be…
  • So now let’s look at some examples. Here you can see shared equity homes that are both single and multi-family across the U.S. As you can see, the ones in Chapel hill are homes for seniors.
  • Here you can see limited equity hsouing cooperatives on CLT land, where homeowners are typically lower income but have some wealth building opportunity. In San Francisco, these are coops created to prevent resident displacement which was being threatened when these building were being sold. The existing residents organized, partnered with the CLT in order to take over their building, where almost all of the residents are Chinese americans.
  • Here you can see CLT homes that have been designed with co-housing designs. These can support fostering collective life and community. However, it is important to note that CLTs serve low or moderate income households, so these co-housing arrangements by CLTs still are shared equity with resale restrictions. They are not the same as higher income enclaves or intentional communities.
  • And here we see examples of rentals that are serving seniors and very low income households. The bottom photo is a mix of properties in a program call renter equity. The renters conduct all property management and attend collective meetings in return for building equity over time. If they stay and participate in their housing, then they are able to build 5,000 in 5 years. The program has almost no turnover and aims to place its housing in high-opportunity, asset-rich neighborhoods to benefit residents.
  • Ok, now let’s hope into non-residential development conducted by CLTs
  • CLTs are doing land conservation and parks. They are doing rural and urban agriculture. And they developing commericial spaces.
  • Here are some examples. Athens land trust, a smaller city in GA, has over 1000 acres of natural land conserved. Many CLTs own pocket parks, larger urban green spaces that support community convening and play areas and public spaces. The commons so to speak.
  • Beore I show you current examples of CLTs doing urban agriulture, I wanted to point out that the history of the CLT movement was rooted in agriculture. The descendents of slave croppers in the Georgia organized in the 60s to buy New Commuities, where they collective built homes and ran a farm.
  • Today the agricultural roots of the CLT movement are resurging, with urban agricluture across the country. Here you can see a great example in another part of GA, where the CLT is partnering to farm behind the public schools, churches, and a soup kitchen. This is really building community engagement and partnerships.
  • A handful of CLTs support commercial agriculture. For instance, in Boston there is an urban greenhouse. In Washington state, the CLT helped to provide the community with a mobile meat processing truck because the CLT is located on island so no local meat was possible on the farms until this service was added.
  • In Alaska, this CLT only produces commercial development. In these photos, you can see a kid youth program called Campfire USA, a locally-owned diner, and a local credit union. In Durham NC, they have developed a community outreach partnership & small business salon & the CLT officesCommericial development is hard and risky. Really need ot have tenants in advance or rehab, constuction due to carrying cost risks. Really need to have legal arrangement be thorough-covering plan a, b, and c. and plenty of reserves
  • So now let’s move on to examine sustainable building used by CLTs.
  • In How Buildings Learn by Stewart Brand, heexplains how the best way to do green housingis to targetsustainable interventions on the most permanent elements of a developmentproject. For instance, having a site where a home can have the best orientation to reduceenergy use. Next, is the ability to invest in the structure to make a compact and efficient design with lasting building materials. Sustinaility and CLTs go hand-in-hand becauseproperties in the trust need to bebuilt to last because the CLT isgoing to thatproperty over the long run. However, CLTsmaywant to addres all of these green issues or prioritizemost permanent components of a home, but they have fundingconstraints and oftengrantrequirementsthatmay or mayenablesustainable building. Buildto last…permantaffordability and stewardship = sustainable building betterNeed to balance preservation, rehab of old buildings v. new construction for long-term permanence all relative to money
  • Here are some examples that run the spectrum.For instance, some of these are using solar panels or meeting basic energy effficiency standards. The LEED standard is a step above, inclding: Solar hot water, the most efficient heating and ventilating systems available, insulation at higher than code, and triple-pane windows are just a few of the green features.
  • This project on Lopez Island is actually net zero. This is a community of single-family homes on CLT land structured as a coopertive. The homes were designed to have a small foot print to reduce energy and resource use; the overhangs produce heat gain in the winter and shade in the summer; the walls and roofing a super insulated with straw bales; concrete floors as thermal mass; energy efficient appliances, solar panels for hot water and power; they have top energy efficient windows with solar insulated shade low-flow fixtures; and rain catchment barrels. Furthermore, the cooperative colletively tracks household energy use to work toward net zero.
  • Lastly, I want to show you some examples of CLTs contributing to sustainable communies.
  • When I say sustainable communities, I mean these considerations. Because we all know that affordable housing isn’t enough for community development. We have to think, act and collaborative for comprehensive community planning to be realized. We want communities that1. balance the built and natural environment2. Address residential and non-residential needs3. In distressed neighborhoods, we want to support revitalization but not gentrification that results in resident displacement4. And we want ot be contributing to smart growth and equitable transit-oriented development. So let’s take a look at some examples of CLTs that doing this
  • The community gardens are at the heart of Troy Gardens. The gardens provide an entry point for individuals and households to get involved in the whole project. Community gardeners use the land to grow their own food, which has a positive impact on their household food security. Community gardens provide recreational outdoor activity as well as a fun and friendly environment for people of all ages, incomes, and cultures to work the land together and share their gardening knowledge and ideas.
  • Community Gardens:60% Asian Americans in Community garden w/ 320 plots of 20 by 20 ft. organic gardening. Plot fees based on people’s income. Also an apple orchard was preserved and is looked after by community.Prairie: preserved and replantedCSA Commericial Farm: certified organic, 110 shareholders, CSA farm, sells baskets and has farmers marketCo-housing: all accessible units for persons with disabilities, energy recover ventilators, solar hot water, Green Built and Energy Star standards
  • 112,000 square feetBoth non-profit and for-profitIn one neighborhood, CLT has developed a communityhealth center, car repair and teaching, bike repair and teaching, neighborhood vet, mix of non profits (soup kichen, senior center); a laundromat, job training center, resteraunt; an pocket park, an artist cooperative with studios. But on top of all that, all of this deelopment was done around CLT homes scattered through the neighborhood to preserve affordability. This originally disinvested neighborhood turned into a revialized neighborhood so it was critical to preserve home for lower income residents.
  • Lastly, in Denver CO a new CLT is basing its work around huge public transit investment in light rail. They realized that lower income people would not be able to afford to live on the public transit lines and speculators were already purchasing up many properties along the lines. Therefore, they went to work with impressive partnerships to start making CLT properties. Here we see 62rental units in the upper left corner, 36 2-bedroom apartments; a mixed-use property with 16 apartments, and future plans for a library, community space, commercial and 80 housing units. The CLT was the master site planner and developer in partnership with others and the city. ---------Jody Apartments: Jody Apartments are less than 300 ft. from the Sheridan transit station along the West Corridor, adjacent to a 800 car park-and-ride to serve the station, and the Lakewood Gulch bike path.ULC established its first CLT , buying 2 acres of land with a 99-year lease in partnership NEWSED, a local nonprofit developer who owns the improvements.4 rental buildings (62 apartments) serve 100 residents , 12 units are reserved for 30% amiVilla TOD CLT Preservation (brick)1/3 acre mixed use property, purchased in August, 2011 and sits on the Santa Fe bus corridor and is 5 blocks from 10th & Osage light rail station.Property includes 16 existing affordable apartments and 7,500 sq. ft. of commercial space. ULC is partnering with local nonprofit, NEWSED, on the long term redevelopment with a 99 year land lease.Total Acquisition and Rehab Costs = $2.3MDahlia Apts CLT Preservation (modern)Dahlia was purchased out of foreclosure in early 2010 for $1.2 million. There are six buildings with thirty-six 2-bedroom apartments in northeast Denver.Dahlia was the first TOD Fund acquisition and includes NSP 1 funds for rehab. ULC has stabilized the buildings, and will sell the improvements to a nonprofit and continue to own the land with a 99 year lease.Total Acquisition and Rehab: $2MMile High Vista Master Site Plan (design)Currently under development, ULC served as master the developer, partnering with the City of Denver and Del Norte Housing (nonprofit developer) to build:New Westside Public Library (27K sq. ft.) Residential mixed use: 80 units of workforce housing + 10k sq. ft. of community space Commercial building CLT: 20k sq. ft. along Colfax Av
  • Let’s get one thing straight: CLTs are defined by their mission not by their model or the legal instrument—the ground lease—that they use to deliver their mission. So I am going to dispel some myths today about the limitations of CLTs because realistically they are community development corportions or community organizaitons….they are able to produce whatever their community needs relative to what their capacity can handle—from rental to homeownership to farmland. We tend to focus on the homeownership piece because it is most innovative. The innovation lies in preserving the public subsidy to help family after family build wealth. But sometimes the market or the community doesn’t just need homewenship options. And CLTs are highly flexibile in being able ot deliver other forms of community assets and development. Under stewardship, I would say resident development is included, whether that be wealth building or goverance and leadership of housing.
  • Emily thaden am flexibitiy of clt model

    1. 1. Flexibility of the Community Land Trust Model for Comprehensive Community Development Emily Thaden, Ph.D. Research & Policy National CLT Network
    2. 2. What is a Community Land Trust?  A CLT owns and stewards land permanently for the common good, by providing:  Affordable housing  Commercial spaces  Community services  Farming or open land The CLT Model
    3. 3. How are CLT organizations structured? Generally, a non-profit organization:  Community-based  Membership organization  Tri-partite governance  Defined service area  Sustainable steward The CLT Model
    4. 4. The CLT Model Individual owns improvements (home) & leasehold right Community Land Trust owns land Dual Ownership
    5. 5. The CLT Model Ground Lease ties improvements & land together Dual Ownership
    6. 6. How is permanent affordability structured? The CLT Model
    7. 7. The CLT Model Small business or cooperative owns improvements (building) & leasehold right Community Land Trust owns land Dual Ownership
    8. 8. The CLT Model Ground Lease ties improvements & land together Dual Ownership
    9. 9. The CLT Model Exceptions to Dual Ownership Rentals Deed-restricted properties (condominiums frequently) Land with conservation easements
    10. 10. The CLT Mission Community control of land Stewardship Resident betterment Permanently affordable assets
    11. 11. Residential Sustainable Building Non-residential Sustainable Communities CLT Flexibility
    12. 12. Residential Development Considerations  Ownership arrangement  Governance options  Wealth-building?  Population-based?
    13. 13. Residential Ownership Options Fee simple homeownership Shared equity homeownership • Limited equity cooperatives • Homes on land in trust • Deed-restricted condominiums Rental/no ownership
    14. 14. Residential Governance Options CLT governance • Membership organization? • Tripartite board structure? Property-based governance • Non-profit homeowner association (cooperatives, condominiums, co- housing, subdivisions) • Resident-run property management (some rentals)
    15. 15. Residential Resident Wealth-building Options Fee Simple Homeownership: Owner wealth = down payment + principal paid on mortgage + appreciation Shared Equity Homeownership: Owner wealth= down payment + principal paid on mortgage + portion of appreciation Limited Equity Cooperative Ownership: Owner wealth= initial cost of share + portion of equity or increased value of share Renter Equity: Owner wealth = cashable credits for sweat equity or Individual Development Accounts/matched savings
    16. 16. Residential Shared Equity: Single & Multi-family homes Durham, NC Senior Homes, Chapel Hill NC Seattle, WA Nashville, TN
    17. 17. Residential Shared Equity: Limited Equity Cooperatives San Francisco, CA Burlington, VT New York City, NY
    18. 18. Residential Shared Equity: Co-housing Woolsey Corner, New Columbia, OR Intentional Community Condominiums, San Francisco, CA Troy Gardens, Madison, WI
    19. 19. Residential Rentals Senior & Low Income Rentals, Albuquerque, NM Renter Equity Housing, Cincinnati, OH
    20. 20. Residential Sustainable Building Non-residential Sustainable Communities CLT Flexibility
    21. 21. Non-Residential Development Options Land conservation & Parks Agriculture & Urban Agriculture Commercial spaces
    22. 22. Non-Residential Land Conservation 1,100 acres Athens, GA Playground & Park, Albuquerque, NM
    23. 23. Non-Residential Agriculture Roots of the CLT in Albany , GA
    24. 24. Non-Residential Urban Agriculture Athens, GA
    25. 25. Non-Residential Urban Agriculture Commercial Greenhouse, Boston, MA Community Garden, Madison, WI Mobile Meat Processing, Lopez Island, WA
    26. 26. Non-Residential Commercial Development Anchorage, AL Durham, NC
    27. 27. Residential Sustainable Building Non-residential Sustainable Communities CLT Flexibility
    28. 28. Sustainable Building Development Considerations Green Framework Most permanent to least… • Site • Structure • Skin • Services • Space • Stuff Green Issues • Health and Safety • Durability • Energy • Affordability • Marketability
    29. 29. Sustainable Building Lincoln City, OR Solar Panels, Durham, NC Portland, OR
    30. 30. Sustainable Building Net Zero Co-housing Cooperatives, Lopez Island, WA
    31. 31. Residential Sustainable Building Non-residential Sustainable Communities CLT Flexibility
    32. 32. Development Considerations Natural & Built Environment Balance Neighborhood Needs (residential & non-residential) Revitalization not Resident Displacement Smart Growth/Equitable Transit- Oriented Development Sustainable Communities
    33. 33. Sustainable Communities Troy Gardens, Madison, WI Ecovillage
    34. 34. Sustainable Communities CSA Farm Co-HousingCommunity Gardens Preserved Prairie
    35. 35. Sustainable Communities Neighborhood Revitalization Burlington, VT
    36. 36. Sustainable Communities Equitable Transit-oriented Development Urban Land Conservancy, Denver, CO
    37. 37. The CLT Mission Community control of land Permanently affordable assets Stewardship Resident betterment