Community Land Trusts 101 for community and neighborhood groups

1. Community Land Trusts 101for community and neighborhood groups

2. A Community Land Trust is a membership-based non-profit corporation created to permanently acquire and hold land for the benefit of the community and to provide housing for low and middle income families. What Is A CLT?

3. Community land trusts evolved in the 1960s and there are hundreds of CLTs throughout the United States.

4. Metropolis = 500,000Medium City = 100,000 - 500,000Rural = <10,000

5. Capture the value of public investment for long-term community benefit. • Gain control over local land use and encourage density in appropriate places. • Provide affordable housing for lower income residents in the community. • Promote resident ownership and control of housing. • Keep housing affordable for future residents. • Build a strong base for community action. Community land trusts can help communities

6. Homeownership • Rental Housing • Community Gardens or Community Supported Agriculture • Open Spaces or Parks • Other Nonprofit facilities • Senior Center • Community Technology Centers **NEW** Typical Uses of CLT Controlled Land

7. Land acquisition • Direct purchase • Gifting • Purchasing tax certificates • Eminent domain • 2. Identify/create a pipeline of potential home buyers. • 3. Assist in selection of land by potential home buyers. • 4. Refer them to financial resources. • 5. Refer them to builders. Types of CLT Activities How does it work?

8. Physical capital (land & dilapidated housing) • Human capital (available workforce) • Financial capital (bank financing) What does a CLT address? In order for there to be economic growth in a community, it must possess capital.

9. Physical capital (land & dilapidated housing) Human capital (available workforce) Financial capital (bank financing) What does a CLT address? By acquiring land, the CLT will give cause to bring together all the components required to generate economic growth.

10. Affordable Housing Advocates Public Agencies • Placer County • Each City • Redevelopment Agencies • TRPA Owners/leaseholders Land Trust renters Builders and Developers Other non-profits Local Business & Community members • Non-Profit 501(c)(3) corporation Who Are the Members?

11. Three key challenges in the long term ground lease:-- designation of the resale formula :-- mechanics of the resale (seller direct versus CLT)-- Foreclosure (restrictions survive) Two key provisions in the long term ground lease:-- resale is limited to income eligible households:-- resale price is limited to keep the house affordable to the next buyer (fair but not market rate of return)

12. Have offices located in the target areas. • AND • 2. Have a documented history of employing inhabitants of the target areas. A CLT can target those contractors, subcontractors and suppliers who:

13. Executive Board Membership By laws Standards & Practices Documented Procedures Decision Making Matrix Detailed land-lease contract Key components of organization & operation

14. Homebuyer fees Fees for services Public funding Private institutional grants Ground lease fees Gifting Grass-roots fund-raising Development fees Federal, state, local funding Funding sources

15. Figueroa Corridor Community Land Trust 152 W. 32nd Street | Los Angeles, CA 90007 | Ph: 213-784-4140 | 213-745-9969 Fax

16. The Figueroa Corridor Community Land Trust was established in 2005 to promote economic justice, affordable housing and a stable community environment for tenants and families in the Figueroa Corridor. About FCCLT

17. Figueroa Corridor Coalition for Economic Justice SAJE & Esperanza Los Angeles Community Design Center community base organizing capacity development capacity financing capacity Strategic Partners Lenders

18. Membership: working class people who live or work in the area Structure of Board of Directors : Structure of the Land Trust

19. Establish Land Trust and Land Company • Partner with Los Angeles Community Design Center • Sell development rights to affordable housing developers • Hold long-term ground lease • Produce affordable housing units • Retain ownership and control of land Development Plan

20. Community Planning (years 1 - 2) • Acquire and Assemble (years 1 - 2) • Entitlements (years 2 - 5) • Disposition & Ground Lease (years 3 - 5) • Produce Affordable Housing (years 5 - 8) Implementation Timeline

21. $5 million Donated Equity $6.5 million Equity Investments $33 million Debt Debt Repayment over 4-7 years Product: 250-300 affordable units Business Plan

22. 250 units of affordable housing • Perpetual affordability • A mixed-income community affordable to a variety of families • Community control of land; leadership development • Community members engaged in planning their neighborhoods • Improved health, education and economic development opportunities Outcomes

23. Cost of Land • Size of Projects • Concentration of funding resources • (place-based initiative) • Private Initiative • Bad City Planning • Complex Structure • Establishing Grassroots Control Challenges

24. Community Land Trusts 101for community and neighborhood groups