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English narrated share orientation presentation 2014
- 1. SHARE Community Land Trust A Program of Upper Valley MEND
- 2. SHARE Community Land Trust KEEPING HOMES AFFORDABLE FOR MULTIPLE GENERATIONS
- 3. Our Orientation I. What Is Upper Valley MEND? II. What is a Community Land Trust? III. SHARE Program Details IV. Benefits of SHARE CLT Homeownership V. How do I apply?
- 4. I. ¿What is Upper Valley MEND? MEND programs: 1. 2. 3. 4. 5. Community Cupboard Free Health Clinic Jubilee Global Gifts Cornerstone Community SHARE CLT
- 5. Did you know? There are 2 SHARE neighborhoods already, and a 3rd is in development. Upper Valley Free Clinic SHARE Community Land Trust Upper Valley MEND SHARE has already provided over 20 families with the opportunity to own their own home. Jubilee Global Gifts Community Cupboard Cornerstone Adult Family Home Alpine Heights (2001) Aldea Village (2005) (In development)
- 6. II. ¿What is a Community Land Trust? A community land trust (CLT) is a nonprofit that holds land in trust which benefits the surrounding community by ensuring the long-term availability of affordable homeownership. Three distinct aspects of CLTs: Organization Operation Ownership
- 7. Organization: Alexandra, Laurie, Rocio Homeowners The SHARE Committee Community Members Momi, Hans E Staff & Board Members Kelly, AmeriCorps Volunteer
- 8. Operation: Why is it affordable? Land Speculation is taken out of the equation
- 9. (cont.) Operation: MEND receives grants and funding from: Washington State Housing Trust Fund (HTF) HUD’s Self Help Opportunity Program (SHOP) Federal Home Loan Bank The Icicle Fund With this help, SHARE is able to offer “silent second” mortgages to homebuyers. Many homebuyers work with a government lender who may provide mortgages with subsidized payments.
- 10. Ownership Homeowner owns the house and its improvements Ground Lease Upper Valley MEND owns the land
- 11. Ground Lease Legal document between MEND and the homeowner. It includes : • The duration of the lease ; • The amount of the “Ground Lease Fee” ; Homeowner owns the house and its improvements • The homeowner’s responsibilities; • Ground Lease The resale formula. Upper Valley MEND owns the land
- 12. Fees $80-95: Lease Fee – el pago de arrendamiento Stewardship and Administration Neighborhood Fund $50: Replacement Reserves – la reserva para repuestos Long-term home maintenance *This money stays with the house, even after it is sold to the next family.
- 13. The Resale Formula Home and Land Value on Open Market CLT Price 240000 $220,000 220000 Purchasing a CLT house is a decision to buy a long-term home; it is not a quick-turn real estate investment. 200000 180000 $175,000 $162,422 160000 140000 $145,020 120000 100000 Initial Sale Resale At resale, SHARE calculates appreciation using Area Median Income.
- 14. III. SHARE - PROGRAM DETAILS
- 15. Why Leavenworth Needs Affordable Homes Leavenworth Housing Prices Affordability Gap Grows Local incomes are not increasing as quickly as housing costs. Purchasing Power Of Average Family in Leavenworth
- 16. Living in a CLT Neighborhood Neighbors own their houses too. CC&R’s Neighbors share common area. Homeowner owns the house. Ground Lease Upper Valley MEND owns the land.
- 17. CC&R’s: Covenants, Conditions, and Restrictions CC&R regulations clarify details of: Parking Homeowner Meetings Pets Noise
- 18. Upper Valley MEND Board SHARE Committee CC&R Committee Homeowner Meetings
- 19. IV. Benefits of SHARE CLT Homeownership • HOME PRICES • REQUIRED FIXED RATE LOANS • LOW FORECLOSURE RATE • ONGOING SUPPORT • INCOME LIMIT AT TIME OF PURCHASE
- 20. What is Better for My Family? PAYING RENT VS. BUILDING EQUITY TAX BENEFITS MAINTENANCE AND REPAIRS MOBILITY VS. STABILITY HAVING “LANDLORDS” VS. BEING HOMEOWNERS
- 21. 1. Renting VS. Owning Rent •Rent Own VS. •Mortgage Payment (Principal, Interest, •Utilities Taxes, Insurance) •Renter’s Insurance •Ground Lease Fee •Yard Maintenance •Replacement Reserves •Utilities •Yard Maintenance and home Repairs
- 22. Inquiry Referral Attend Orientation; receive application V. How do I Apply? Turn in completed application and documents, pay $60 application fee. . Interview with SHARE Staff If eligible, join waitlist.
- 23. Eligibility Eligible for SHARE if: The applicant is/has been a resident or employee in the Cascade School District area; The applicant is legal resident of the U.S; Family income is at or below 80% of Area Median Income for family size; Family assets are lower than $15,000 at closing.
- 24. Area Median Income Household Size 1 2 80% $32,400 $37,000 3 4 5 6 7 $41,650 $46,250 $49,950 $53,650 $57,350 Total household income (everyone in your home regardless of if they will be on the mortgage) must be at or below 80% of the area median income, adjusted for household size.
- 25. Qualifying Qualify for a mortgage if: Your total Debt Ratio is below 45%; The family has a high enough income The applicant has good credit.
- 26. Debt Ratio To be eligible for a SHARE CLT house, your total debt cannot be more than 45% of your total income. Debt= car loans, student loans, credit card debt, and any housing costs from buying and moving into a SHARE house. / Income X 0.45 = Maximum Debt for Eligibility
- 27. Meadowlark is SHARE’s third CLT neighborhood, and will provide 30 new permanently affordable houses to Leavenworth. The neighborhood will be located behind the high school, between Titus Road and Chumstick Highway. Meadowlark
- 28. More Information House Sizes – 3 and 4 bedroom – 1,300-1,600 square feet Schedule Spring 2014: Orientations, Build Waitlist, “Home Show” Fall 2014: Construction begins Build 15 houses per year for 3 years
- 29. SHARE CLT Questions? Thanks for reviewing this orientation!