A Community Land Trust for Pottstown

1. Steering Committee Jerry Nugent, Kathy Phifer, Jason Bobst, Judy Memberg, Dave Garner, Chris Huff, David Jackson, Sue Repko December 20, 2010 A Community Land Trust for Pottstown

2. A nonprofit model for: • Community involvement & partnerships • Increased homeownership • Neighborhood stabilization • Community gardens • Job creation • PA Housing Alliance: “Housing is economic development.” What is a CLT?

3. Active in the U.S. since the 1970s • 241 CLTs in 45 states • Over 5,000 CLT homes • There are 5 CLTs in PA: State College, Philadelphia, Macungie, Bellefonte & Lehigh Valley Lehigh Valley CLT received the 2010 Innovation Award from the PA Housing Alliance History of CLTs

4. The Cycle • Estimated 44% rental housing stock • Concentration of subsidized units • Lax code enforcement • Blighted properties • Wave of foreclosures* • Diminishing real estate values →increased property taxes → homeowner flight * So far, 75+ properties went to banks in 2010 (excl. Hanover Sq.) Pottstown’s Housing Crisis

5. How does a CLT work?

6. A CLT owns property, rehabilitates buildings, then sells or leases buildings according to community goals. • A CLT retains ownership of the land beneath the buildings. • A re-sale formula allows owners to build equity but keeps homes permanently affordable. • CLT stewardship promotes home maintenance & prevents foreclosure. Affordable Homeownership

7. CLTs continually engage with residents. • CLTs rely on partnerships to solve safety and code enforcement problems: Borough, Genesis Housing, CPR/Neighborhood Watch. • CLTs do more than housing: community gardens can turn vacant lots into attractive, healthy and safe communal spaces. Neighborhood Stabilization

8. Before A Vision for Old Chestnut Street Playground After

9. CLT can serve as land bank • CLT can partner with County Redevelopment Authority • CLT can own, lease & sell commercial property • CLT can create job incubator, market properties for artists, sell properties at market rates & more • CLTs create local construction jobs Economic Development

10. Current Pottstown planning documents support the principles behind a CLT: • Creation of non-profit housing corporation • Increased homeownership • Increased housing choices • Stabilized neighborhoods • Enforcement of housing codes The experts have spoken

11. Combat disinvestment by: • improving code enforcement • helping renters become buyers • helping homeowners make repairs • encouraging multi-family conversions to single-family • establishing programs that are not income-restricted Technical MemorandumProgram Initiatives to Support Core District Redevelopment Plan Urban Partners, March 2003

12. Housing is a basic element of a community’s economic health and growth. • • Maintain & promote revitalization of existing residential neighborhoods & villages. • Encourage pedestrian-oriented, residential neighborhoods that foster a sense of community. • Accommodate housing opportunities for a range of income levels & age groups. Pottstown Metropolitan Regional Comprehensive Plan, 2005

13. Encourage revitalization of neighborhoods • Provide broad range of housing choices, including market rate, owner-occupied housing • Form non-profit Borough Housing Corporation to lead housing initiatives • Provide financial incentives & other support to encourage rehabilitation & homeownership Pottstown Economic Development Strategic Plan, March 2008by Gannett Fleming

14. Expand market choices for new housing & revitalize existing housing • The creative class, households without children & other nonconventional households do not want to move into neighborhoods that are beginning to decay, appear to be empty, or have the perception of crime. • An aggressive neighborhood stabilization partnership should be established immediately. Pottstown, PA: Transformation Strategies Urban Land Institute, October 2009

15. Washington Street Neighborhood Action Plan Update (2010) • Improve housing stock • Reduce crime • Revitalize deteriorated section of Pottstown • Community building • Development of affordable housing • Education of consumers on housing & financial issues

16. County-wide non-profit active in Pottstown • Rehabilitates housing • Provides financial counseling & homeownership for low/mod-income households • Excellent track record • Sale prices dictated by government funding regulations Genesis Housing Corporation

17. Genesis to provide technical assistance to CLT • CLT to fill in gaps • rehab properties outside Genesis model • sell market-rate units, where possible • undertake commercial/economic development projects • provide opportunities for citizen involvement Genesis-CLT Partnership

18. Borough • School District • PAID/Chamber • Montgomery County • Genesis Housing Corp. • PDIDA • Montgomery County Community College • The Hill School • Health & Wellness Foundation PMMC Pottstown Arts & Cultural Alliance Pottstown Garden Club Pottstown SCORE Buildings Industries Exchange/ACE mentor program Faith communities Financial institutions & local businesses Real estate community And more…. More Potential Partnerships

19. Currently exploring formal partnership with Preservation Pottstown, an existing, local 501(c)(3). • By-laws include acquisition & ownership of properties; support efforts to improve residential, non-residential & public spaces in Pottstown; support economic development activities. • CLT invited to next meeting on January 13, 2011 for formal presentation • National Community Land Trust Network provides free manuals, model ground leases, accounting manuals, on-line courses & other field-tested resources A Community Land TrustFor Pottstown

20. The “classic” structure for a CLT Board of Directors includes: • CLT homeowners (1/3) • Members of the community-at-large (1/3) • Representatives from community partners, including local government (1/3) Permanent CLT Board

21. Site Control • Money Nuts-and-Bolts

22. Having control of some properties in distressed areas is essential for stabilization & redevelopment. • Properties can come from: • Borough & County blighted inventory • Sheriff’s sales • Foreclosures Site Control

23. Seed money essential for initial, • high-visibility projects. • Federal, state, county programs • Foundations • Local Financial institutions • Private donors • Fostering partnerships to bring more dollars to the community. • Some funds will revolve back to CLT as properties are sold & put back onto tax rolls. Sources of Funding

24. Nonprofit does not mean “no taxes”! • CLT is a problem-solving community organization • Several possibilities exist for taxing limited-equity homes and CLT-owned land • Responsible & equitable taxation method to be worked out in partnership with taxing bodies CLT & Taxes

25. Put blighted properties back on tax rolls • Increase homeownership • Increase community involvement • Reduce crime • Create jobs • Attract market-rate homeowners & businesses back to Pottstown • Improve fiscal outlook Ultimate Goals

26. Next Steps Community Land Trust

27. We need you…

28. … to put the pieces together!

29. Dave Garner • Chris Huff • David Jackson • Sue Repko • www.PottstownCLT.wordpress.com • PottstownCLT@gmail.com POTTSTOWN COMMUNITY LAND TRUST