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Shared Equity Kittitas Yakima Valley CLT

Shared Equity Kittitas Yakima Valley CLT. Sarah Bedsaul Director. Modern Idea of CLT . Landowner is a private, non profit corporation with membership that is open to anyone living within the CLT’s geographically defined “community.”

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Shared Equity Kittitas Yakima Valley CLT

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  1. Shared Equity Kittitas Yakima Valley CLT Sarah Bedsaul Director

  2. Modern Idea of CLT • Landowner is a private, non profit corporation with membership that is open to anyone living within the CLT’s geographically defined “community.” • A majority of the governing board is elected by the CLT membership. • There is a balance of interests on the governing board including leaseholders, community residents and representation of the public interest.

  3. Structured Ownership • Land is treated as common heritage, to be used for the communities’ benefit, not as an individual possession. • Land is removed permanently from the market, never resold. • All structural improvements are owned separately from the land. • A ground lease lasting many years gives the owner of the improvements exclusive use of the land.

  4. Ground Lease • Legal land use document, used for closing, 33 pages long • Includes: • Letters of Agreement • Transfer of rights to land • Terms of lease • Use of leased land • Lease fee • Taxes and Assessments • The home • Financing • Liability, insurance, damage & destruction, eminent domain • Transfer of the home • Default • Arbitration • General Provisions • Exhibits

  5. The highlights • 99 year lease, restarts at each sale, can be renewed • Residential uses only, legal uses only, owner occupied • Must occupy home for at least 9 months of the year • No subleasing • Homeowner pays a small lease fee to CLT • Homeowner pays all taxes & assessments • Cannot mortgage with out CLT permission

  6. Highlights continued… • Homeowner must carry insurance • KYVCLT has first right of refusal • Lease automatically makes homeowner a voting member of CLT

  7. CLT homes & property taxes • Residents of CLT homes consume local government services (schools, streets, sidewalks, police & fire protection, etc.) to the same extent that other residents of the community do. • Can be split into land and improvements but typically the land tax value is added to lease fee, therefore the home owner still pays all. • Taxes are based on market value of property -The community land trust hand book

  8. Resale Formula • Fixed rate 10.10 How the Formula Price Is Calculated The Formula Price shall be equal to the amount of Homeowner’s Base Price (which CLT and Homeowner agree is $_______) plus interest at a rate of 1% compounded annually for years 1-5, 1.5% compounded annually for years 6-10, and 2% compounded annually thereafter.

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