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City of Bridges Community Land Trust

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City of Bridges Community Land Trust

  1. 1. • CLT History • City of Bridges CLT Overview • CBCLT Programs & Outcomes
  2. 2. MissionStatement What’s a Community Land Trust?
  3. 3. COMMUNITY LAND TRUSTS ● 50 year-old movement, began in Albany, GA ● A unique approach to affordable homeownership ● Attempts to balance preserving communal wealth with building personal wealth
  4. 4. The Earliest CLTs • First CLT: New Communities Inc. Leesburg - GA 1969 – Started by National Sharecroppers Fund to answer the question of security for African-American tenant farmers and sharecroppers who lacked the legal protections of industrial workers. – Largest Black-owned property in the US. • First urban CLT: Community Land Cooperative of Cincinnati - 1981 – Started by ecumenical association of pastors, priests, and nuns worried about gentrification and displacement.
  5. 5. Structure of Homeownership ● CLT owns and holds title to the land forever, Homeowner owns home ● CLT conveys use of land to income- qualified homebuyer via a 99 year, inheritable, renewable ground lease ● Ground lease (to land) and deed (to home and land) are recorded with County Real Estate Dept.
  6. 6. Permanently Affordable Homeownership ● CLT homeowners, by signing the ground lease: Agree to share with future homebuyers the affordability that was initially created for them Agree to a resale formula that will be used to determine the price at which they can sell their homes
  7. 7. Building Wealth • Wealth Creation vs. Wealth Building • When we talk about wealth “creation” what we’re really talking about is wealth extraction • The CLT model seeks to change that by recognizing • We are all in this together • Individual success is bound up in collective success • Community wealth should not become privatized wealth
  8. 8. Personally-created Appreciation Acquisition "Downpayment" ”Amortized Principal” Appreciation "Equity Build-up” "Betterment" Socially-created Appreciation Equity in your home “Owner’s Interest” Some of our equity is a direct result of the investment we make up- front and over time And some of our equity comes from the increase in value of our property over time Some of this appreciation comes from value we add - taking care of our home, making improvements, etc. And some of this appreciation comes from value that comes from other factors: good schools, public improvements, natural amenities, public subsidies, etc.
  9. 9. Comparison to Conventional Homeownership Key Differences: Restrictions on use and resale value Purchased through a leasehold mortgage rather than fee simple mortgage Key Similarities Eligible for all income tax benefits of traditional homeownership Fully inheritable – absent income restrictions
  10. 10. POST-PURCHASE STEWARDSHIP CLT lays out clear expectations - and monitors - and enforces - compliance CLT enters into long-term, mutually accountable relationships with homeowners CLT stands behind - and backstops - its homeowners, to ensure their success.
  11. 11. HOMEOWNER SECURITY Over 90% of CLT homeowners remain in their homes at least five years Historically, the average tenure of CLT homeowners is seven years Over 70% of CLT homeowners, when they sell their CLT homes, purchase an unrestricted, market-rate home
  12. 12. MissionStatement Our Story
  13. 13. National Models • Proud Ground – Portland, OR – 5 county service area – 280 homes • City of Lakes – Minneapolis, MN – Serves the entire city of Minneapolis – 275 homes • Champlain Housing Trust – Burlington, VT – 3 county service area – 620 single family homes, 2300 rental units
  14. 14. Results of National Scan & CLT Best Practices ● Growing geographic service area ● Diverse portfolio ● Robust Partnerships ● Dedicated Stewardship Staff ● Guaranteed governance by CLT residents
  15. 15. CLT Governance Structure
  16. 16. Community Control Through Committee Leadership
  17. 17. MissionStatement How can we help?
  18. 18. Paths to CLT Housing ● CLT Developed Units ● Developed 20 homes to date ● 12 groundbreakings in next 6 months ● CLT-Managed Rentals ● Buyer Initiated Grants Future Expansion ● LIHTC + CLT ● Cooperatives + CLT
  19. 19. Buyer-Initiated Program • CBCLT provides a flexible grant to close the gap between market and affordability. – Around $45,000 • Buyer gets affordable mortgage; seller gets their asking price. • At closing, land comes to CBCLT and home goes to buyer. • Creates affordability faster and cheaper than real estate development
  20. 20. MissionStatement Challenges & Lessons Learned
  21. 21. Key Operational Issues ● No substitute for authentic community engagement! ● Capital intensive work: $100k-$300k/home GAP ● CLTs make bold promises that must be kept ● Upfront and ongoing need for deep partnerships ● Lenders
  22. 22. MissionStatement Questions? www.cityofbridgesclt.org ed@CityofBridgesCLT.org

Editor's Notes

  • Changes the structure of traditional home ownership
    Cultivate long-term relationships with residents, occupants, and users
    Create PERMANENTLY affordable homeownership
  • I have an ambitious goal, I want to remove the phrase “wealth creation” from our social vocabulary. In our work, when you’re talking about real estate, wealth isn’t created it’s transferred. The only way a homeowner “creates” wealth by owning a home is if someone else has wealth to hand over to them when they sell the home.

    This isn’t creation, it’s extraction. It’s extracting wealth from another person and it’s extracting wealth from a community.
  • This is especially helpful when we talk to funders, when you fund one CLT home you are actually funding affordable home ownership for as many as 14 households.

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