Resident Ambassador Handbook Washington, DC March 17-18, 2015
NATIONAL COMMUNITY LAND TRUST NETWORK PO Box 42255 Portland, Oregon 97242 503.493.1000 BOARD OF DIRECTORS Jesse Beason Northwest Health Foundation Portland, OR Brenda Torpy Champlain Housing Trust Burlington, VT Connie Chavez Albuquerque, NM Anthony Jones Bright Community Trust Clearwater, FL Robert Dowling Community Home Trust Carrrboro, NC Cheryl Key First Homes Properties Rochester, MN Selina Mack Durham Community Land Trustees Durham, NC Marge Misak Neighborhood Housing Services of Greater Cleveland Cleveland, OH Scott Loomis Mountainlands Community Housing Trust Park City, UT Christopher Ptomey Habitat for Humanity International Nashville, TN Norma Valdez The Loan Fund Albuquerque, NM Emily Seibel Yellow Springs Home, Inc Yellow Springs, OH Dear Ambassador, On behalf of the board, staff and members of the National Community Land Trust Network, I want to thank you for participating in the Ambassadors Initiative. We are excited that you will be helping us to educate elected officials and partners on the importance of community land trust (CLT) and permanently affordable housing (PAH) programs. I want to thank you for developing and sharing your story with us and taking time away from your family to join us in Washington DC. I also appreciate you taking the time to reach out to elected officials to set up meetings in Washington DC. Your efforts to date have already moved our initiative forward. Our goals for this year s hill visits are to: 1. Educate elected officials about the importance of CLTS and PAH; and 2. Ensure that as many people as possible have access to CLT homeownership opportunities by: - Making sure that there is adequate federal funding for critical sources of CLT project funding like HOME and CDBG; and - Making sure that CLT homebuyers have access to a variety of mortgage finance products. Our trip to Washington DC this year is going to be enhanced by your participation as an Ambassador. Your job in Washington DC is to: 1. Tell your story in your own words. Elected officials want to know how their policies impact people like you on the ground. 2. Have fun! As you tell your story and continue to participate in the Ambassador Initiative, please know that if there is something that we can do to make your time more enjoyable, we are open to suggestions. In closing, I hope that you have enjoyed these past few months as we get ready for the Washington DC trip. Thank you for all of your work and I look forward to the time we get to share with each other. Respectfully Jason Webb Community Capacity Building Associate Melora Hiller Executive Director National Community Land Trust Network
Who We Are When we are on the Hill, we are all representing the National Community Land Trust Network (Network), as well as your individual CLT and community. The Network is a membership based organization of more than 160 community land trusts (CLTs) and permanently affordable homeownership (PAH) programs across the country. We provide training and technical assistance to its members as well as conduct research and advocacy to advance the field. We will be educating elected officials on community land trusts and permanently affordable homeownership. For the purpose of these meetings, we ll use the following definitions: Community Land Trust (CLT): A nonprofit organizations that provide lasting community assets and permanently affordable housing opportunities for lower-income families. Permanently Affordable Homeownership (PAH): An umbrella term for all resale-restricted housing that is affordable for at least 30 years (and preferably forever). PAH includes CLT and deed restricted homes as well as limited equity cooperatives. PAH is also frequently called shared-equity homeownership. Quick Stats about CLTs and the Network Membership There are over 160 Network Members. There are over 200 Community land trusts and more than 500 inclusionary housing programs across the country. Network Members represent roughly 15,000 homeownership units and 25,000 rental units. However, an additional 500 inclusionary housing programs exist with an estimated 150,000 affordable housing units. Average income served by permanently affordable homeownership programs is 65% of AMI.
Washington, DC Meeting Agenda 16 Monday, March 16 Travel day to Washington DC 6:30pm Optional Group Dinner at Toscana Café, 601 2nd Street Northeast 6:15pm meet in lobby (optional) 17 Tuesday, March 17 8:30am Meet at NeighborWorks America, 999 North Capitol Street NE #900 8:15am meet in lobby (optional) 8:30am Breakfast (provided) and introductions 9:00am 10:45am 11:30am 5:00pm 6:30pm Advocacy Training Lunch and travel to the US Capitol Congressional visits start Break Group dinner at DC Harvest, 517 H Street Northeast 6pm meet in lobby (optional) 18 Wednesday, March 18 Travel day back home 8:00am Meet at Capitol Café and Salad Bar, 101 Constitution Avenue Northwest 7:45am meet in lobby (optional) 8:00am 9:00am 1:00pm 2:00pm Breakfast (provided) Congressional visits start Lunch (provided) End of day
On the Ground Instructions TIP: you may want to print this page out and bring it with you on the plane! Ground Transportation The DC Metro (http://www.wmata.com) conveniently serves both Reagan Airport (DCA) and Union Station (2 blocks from the hotel see map). From DCA airport: Take the Metrorail (yellow line towards Greenbelt station) Get off at Gallery Place. (6 stops from airport) Transfer to the red line towards Glenmont station. Hotel is located at the Union Station stop. (2 stops from Gallery Place) Hotel We will be staying at the Phoenix Park Hotel (see map). The Network has already saved and paid for your room. Upon check-in, you will be asked to put a credit card on account for incidentals only. Phoenix Park Hotel 520 North Capitol Street Northwest (202) 638-6900 Meals In Washington DC, the Network will provide breakfast lunch and dinner. This does not include any alcohol; individuals must pay for this separately. The Network will reimburse you for any meals not provided during the trip including on travel days. For this trip, travel day meals will be reimbursed up to the following amounts: Breakfast: $12 Lunch: $18 Dinner: $36 Snacks: $5 Please hold on to your receipts. We ll provide instructions on how to submit reimbursements after the trip. Questions/issues while travelling? Give us a call: Jason Webb 617-792-6881 Beth Sorce 617-694-0161
On the Ground Map: Washington DC Here are all the places that we ll be visiting throughout the trip. Don t forget- if you want to walk in a group, you can meet in the hotel lobby 15 minutes before a meeting start time. See the agenda for more details.
Detailed Map of Capitol Hill for Visits We ll use this map to move between meetings while on the Hill.
Storytelling Your story is the most important part of each congressional meeting. You are going to tell the elected officials why community land trusts and permanently affordable housing matter by telling them how it has impacted your life and the lives of those around you. You really can t tell a bad story. But, if you get nervous, remember Lisa s tips: Take a deep breath. Keep it simple. Speak from the heart. Include a few details to help paint a relatable picture. Some questions to think about when you re shaping your story: 1. Why did you want to become a homeowner? 2. What was your housing situation before becoming a homeowner? 3. How did you hear about your CLT? 4. How did your CLT help you become a homeowner? 5. Was the process challenging? If so, how? 6. What was it like to sign all of the closing documents and get the key to your own home? 7. Has being a homeowner had an impact (positive or negative) on your life? 8. What would be different in your life if you hadn t purchased a CLT home? 9. What has surprised you about being a homeowner? 10. How has the CLT helped support you as a homeowner (as opposed to a homebuyer)? 11. What s your favorite thing about your home? Your CLT? Your community? As you know, we ve asked you to prepare two different variations on the story above one about funding and the other about financing. These variations are the icing on the cake; if the details get too technical or you can t squeeze it all in, don t worry about it. You will be with a team of folks who can supplement your story. But for planning, some questions to think about are: Funding 1. Did your CLT use any federal funds to help make your home affordable? 2. What would have happened if those funds were not available? 3. What will happen to your CLT and your community if those funds aren t available in the future? Financing 1. Did you have trouble being approved for a mortgage not because of your income or credit but because you were purchasing a CLT property? 2. Did you have a variety of choices of mortgage products? 3. Is your mortgage affordable to you? Do you feel confident and secure in the terms? 4. Did it take a long time? Were there a lot of hoops to jump through? 5. Now that you ve been through the process, what lessons would you share with a future CLT homebuyer?
Instructions for All Congressional Visits Regardless of who you are meeting with, every meeting will follow this structural outline. Ambassadors are responsible for the tasks highlighted in red. As we ve discussed, the content of each meeting differ based on our audience. Outline (estimated minutes) Roles Purpose, Tips, & Tasks Before meeting Identify script & supporting materials Everyone Review who you re meeting with and which script and handouts you should use. Assign roles Everyone Assign roles for during & after the meeting. During meeting Introductions (2) Everyone Provide your name, where you live, your affiliated organization, and your role (resident, Executive Director, staff member of Network). Acknowledgements (1) Staff or board member Thank congressional office for their leadership or role on committee/subcommittee. If you have time, look up a related pet project, legislation, or a position specific to the congress person that you can thank them for. Educate on housing model (5) Ambassador or practitioner story (3) Explain the issue (5) Ask for action (3) Practitioner/board member Ambassador (practitioner if ambassador absent) Staff (board member if staff absent) Staff (board member if staff absent) Communicate analytically what community land trusts and permanently affordable homeownership (PAH) are, how they work and prudently uses public funds, and the outcomes. Emphasize certain points based upon issue. Communicate subjectively (i.e. appeal to the heart) by sharing a story that is inspiring and leads into the issue. This will be either your FUNDING or FINANCING story. Explain the problem to lead up to our request. Communicate the specific ask(s) & cordially express that we ll follow-up (get contact information). Ask what we can do (1) Board member Ask what we can do for them. Do they need additional information? Is there an issue they face that we could support? Gather business cards & complete sheet Assigned person After Meeting Fill-in Congressional Visit Form, gather business cards, & give to Mark or Emily
AMBASSADOR CHEAT SHEET Meetings on Increasing FUNDING for CLTs and PAH We want to see more CLT homes on the ground and so we want to make sure that, at minimum, Congress does not cut funding for affordable housing. Even better, we would like to see Congress increase funding levels! Background Almost all community land trusts use federal funds to help make their homes affordable to low- and moderateincome homeowners. For that reason, the federal budget is very important to us. Especially since, over time, federal funds for affordable housing and community development needs have shrunk while needs on the ground have grown. This means that organizations like CLTs have had to try to figure out how to serve more households using fewer resources. Each year, Congress must pass an appropriations bill that sets the federal budget for all discretionary funding. The bill is overseen by the House and Senate Appropriations Committees which are, in turn, advised by twelve sub-committees including the Transportation, Housing and Urban Development subcommittees which make recommendations on the US Department of Housing and Urban Development s (HUD) overall budget. HUD oversees two significant sources of funding that CLTs use to help write down the cost of developing housing in order to make it affordable to low- and moderate-income households: the HOME Investment Partnership Program (HOME) and Community Development Block Grant Program (CDBG). Each year, HUD awards HOME and CDHG funds to states and localities based on a formula. The states and localities then use the money to fund a wide range of community development activities including affordable housing development. On the Hill We ll be meeting with members of the Transportation, Housing and Urban Development Subcommittees who oversee HUD s budget. For 2015, our specific asks are to: 1. Increase appropriations to Transit, Housing and Urban Development (THUD); 2. Support the President s FY 16 budget for the HOME program ($1.06 billion); and 3. Not support the proposed cuts to CDBG (at the very least, please fund CDBG at 2015 levels of $3 billion). Your Story This is your FUNDING story. The specific information that you want to impart is: 1. Being a CLT homeowner has had a positive impact on your life; 2. But for federal funding programs like HOME, you would not be able to own your home; 3. You want to make sure that other individuals and families have similar opportunities to become homeowners.
Permanently Affordable Homeownership & Community Land Trusts Sustainable models that use a one-time public investment to create a permanently affordable home WHAT ARE CLTs AND PAH PROGRAMS? Community Land Trusts (CLTs) are nonprofit organizations that provide lasting community assets and permanently affordable housing opportunities for lower-income families. CLTs are best known for their permanently affordable homeownership (PAH) programs. Along with CLTs, some Community Development Corporations (CDCs), Community Development Financial Institutions (CDFIs), Habitat for Humanity affiliates, and government-based inclusionary zoning programs have PAH programs. In 46 states: >200 CLTs >600 PAH programs > 150,000 homes HOW DO THEY WORK? A one-time public investment is used in a self-sustaining way to keep homes forever affordable to families with modest incomes. PAH programs invest public funds into a property to make home purchase affordable for a lowerincome family. The program supports the family to attain and sustain homeownership. In return, the homeowner agrees to sell the home at an affordable price to another lower-income homebuyer in the future. Consequently, the family is able to successfully own a home and build wealth, while the program is able to investment in the home permanently to help family after family. WHAT DO THEY ACCOMPLISH? PAH Programs: 1. Increase access to successful homeownership among lower income and minority families. 2. Buffer the adverse impacts of gentrification by providing a stock of housing that remains affordable. 3. Stabilize neighborhoods by increasing owner occupancy, promoting residential stability, preventing foreclosures, and maintaining homes in good condition. % of Mortgages that are 90+ Days Delinquent or in Foreclosure Proceedings (Thaden 2011) 1.98% 6.30% 9.67% 1.62% 1.30% 8.57% 2008 2009 2010 Loans on Permanently Affordable Homes Loans on Market-rate Homes www.cltnetwork.org 503.493.1000 info@cltnetwork.org
ADEQUATELY FUND HUD & THE HOME AND CDBG PROGRAMS With rising housing values and o committed to the ongoing subsidization of affordable rental units, HUD requires substantially more funding to make an impact on the growing housing needs across the country. HUD must also efficiently use its funds beyond rental subsidy programs. Unlike other homeownership programs, PAH programs only require a one-time public investment in order to create a home that remains affordable to serve family after family with modest incomes. s a self-sustaining model. That s why the Bipartisan Policy Center recently released a policy report urging the federal government to provide greater support to PAH programs 1. Above and beyond the prudent use of public funding, helping families become successful homeowners reduces public costs on health care, stimulates the economy through job creation, and results in families building wealth, obtaining better jobs, and improving children educational attainment 2. OUR ISSUE HOME and CDBG programs are the dominant federal sources to create permanently affordable homeownership opportunities for families. Both programs have experienced major cuts in recent years. In fact, the HOME program has been reduced by 51% and CDBG by 33% since the height of the recession in 2010. HOME CDBG FY 2010 1.83 billion 4.45 billion FY 2015 900 million 3 billion 1.06 billion 2.8 billion OUR ASKS Please provide sufficient THUD appropriations to fulfill the HOME program and maintain CDBG funding at current levels. 1 Lubell, Jeffrey. (December, 2014). Housing More People More Effectively through a Dynamic Housing Policy. Washington, DC: Bipartisan Policy Center. 2 Belsky, Eric S., Herbert, Christopher E., & Molinsky Jennifer H. (2014). Homeownership Built to Last: Balancing Access, Affordability, and Risk After the Housing Crisis. Cambridge, MA & Washington, DC: Harvard University & Brookings Institution Press. HOMEOWNER STORY: Leslie Coburn A few years ago, Leslie was working as an Activities Specialist in a retirement community in Chapel Hill, North Carolina, commuting an hour every day from Granville County. However, the commute meant she had little time to do much beyond drive, work, and sleep. So after some searching, she was able to find an affordable place to rent near work. But over the next three years as the area developed, her rent increased significantly. Fortunately, a co-worker introduced Leslie to Community Home Trust, a community land trust in Chapel Hill. Community Home Trust was able to prepare Leslie to become a homeowner and provide a home she could afford to purchase due to the HOME program. Today, Leslie has been promoted at work and is thriving. With a home close to work, she has the time and energy to be active within her community in Chapel Hill. And since she is living affordably and building wealth from owning a home, she is now able to financially prepare for her own retirement. www.cltnetwork.org 503.493.1000 info@cltnetwork.org
AMBASSADOR CHEAT SHEET Meetings on Removing barriers to FUNDING for CLTs and PAH Not only do we want to make sure that affordable housing is adequately funded, we want to make sure that CLTs and PAH programs are eligible to apply for and use federal funding. Background Because of the way that CLTs make homes permanently affordable, they sometimes run into administrative issues that make accessing typical sources of affordable housing funding either challenging or impossible. Recently, HUD issued new rules for the HOME Program that made CLTs ineligible for funding because of the way that they structure fees. This is significant since HOME funding has been one of the most critical sources of funding for CLTs. This is especially frustrating because CLTs and PAH programs are one of the best stewards of public funds. They only require a one-time public investment in order to create a home that remains affordable to serve family after family with modest incomes. It s a self-sustaining model. On the Hill We ll be meeting with members of the House Financial Services Subcommittee on Housing and Insurance as well as the Senate Banking, Housing & Urban Affairs Subcommittee on Housing, Transportation and Community Development. These committees oversee the administration and management of HUD programs like HOME and CDBG. For 2015, our specific ask is to: 1. Contact HUD and urge leadership and staff to address barriers for CLTs to utilize the HOME program as soon as possible. Your Story This is your FUNDING Story. The specific information that you want to impart is: 1. Being a CLT homeowner has had a positive impact on your life; 2. But for federal funding programs like HOME, you would not be able to own your home; and 3. You want to make sure that other individuals and families have similar opportunities to become homeowners.
Permanently Affordable Homeownership & Community Land Trusts Sustainable models that use a one-time public investment to create a permanently affordable home WHAT ARE CLTs AND PAH PROGRAMS? Community Land Trusts (CLTs) are nonprofit organizations that provide lasting community assets and permanently affordable housing opportunities for lower-income families. CLTs are best known for their permanently affordable homeownership (PAH) programs. Along with CLTs, some Community Development Corporations (CDCs), Community Development Financial Institutions (CDFIs), Habitat for Humanity affiliates, and government-based inclusionary zoning programs have PAH programs. In 46 states: >200 CLTs >600 PAH programs > 150,000 homes HOW DO THEY WORK? A one-time public investment is used in a self-sustaining way to keep homes forever affordable to families with modest incomes. PAH programs invest public funds into a property to make home purchase affordable for a lowerincome family. The program supports the family to attain and sustain homeownership. In return, the homeowner agrees to sell the home at an affordable price to another lower-income homebuyer in the future. Consequently, the family is able to successfully own a home and build wealth, while the program is able to investment in the home permanently to help family after family. WHAT DO THEY ACCOMPLISH? PAH Programs: 1. Increase access to successful homeownership among lower income and minority families. 2. Buffer the adverse impacts of gentrification by providing a stock of housing that remains affordable. 3. Stabilize neighborhoods by increasing owner occupancy, promoting residential stability, preventing foreclosures, and maintaining homes in good condition. % of Mortgages that are 90+ Days Delinquent or in Foreclosure Proceedings (Thaden 2011) 9.67% 8.57% 6.30% 1.98% 1.62% 1.30% 2008 2009 2010 Loans on Permanently Affordable Homes Loans on Market-rate Homes www.cltnetwork.org 503.493.1000 info@cltnetwork.org
HUD SHOULD SUPPORT PAH PROGRAMS O is committed to the ongoing subsidization of affordable rental programs; as a result, the agency must be efficient in the use of its remaining dollars. Unlike other homeownership programs, PAH programs only require a one-time public investment in order to create a home that remains affordable to serve family after family with - sustaining model. That is why the Bipartisan Policy Center recently released a policy report urging the federal government to better support PAH programs 1. Above and beyond the prudent use of public funding, helping families become successful homeowners reduces public costs on health care and improves the economy since home owning families build wealth, obtain better jobs, and their children attain higher levels of education 2. OUR ISSUE (CLTs) in its definition of has not amended other rules so that CLTs can use HOME funds (see our letter submitted to HUD on February 15, 2015). The Network has been asking HUD to address these issues for over a year. HUD needs to update and modify HOME program rules to allow permanently affordable homes to be created and maintained by CLTs. OUR ASK Please contact HUD and urge leadership and staff to address the barriers for CLTs to utilize the HOME program. 1 Lubell, Jeffrey. (December, 2014). Housing More People More Effectively through a Dynamic Housing Policy. Washington, DC: Bipartisan Policy Center. 2 Belsky, Eric S., Herbert, Christopher E., & Molinsky Jennifer H. (2014). Homeownership Built to Last: Balancing Access, Affordability, and Risk After the Housing Crisis. Cambridge, MA & Washington, DC: Harvard University & Brookings Institution Press. HOMEOWNER STORY: Leslie Coburn A few years ago, Leslie was working as an Activities Specialist in a retirement community in Chapel Hill, North Carolina, commuting an hour every day from Granville County. However, the commute meant she had little time to do much beyond drive, work, and sleep. So after some searching, she was able to find an affordable place to rent near work. But over the next three years as the area developed, her rent increased significantly. Fortunately, a co-worker introduced Leslie to Community Home Trust, a community land trust in Chapel Hill. Community Home Trust was able to prepare Leslie to become a homeowner and provide a home she could afford to purchase due to the HOME program. Today, Leslie has been promoted at work and is thriving. With a home close to work, she has the time and energy to be active within her community in Chapel Hill. And since she is living affordably and building wealth from owning a home, she is now able to financially prepare for her own retirement. www.cltnetwork.org 503.493.1000 info@cltnetwork.org
AMBASSADOR CHEAT SHEET Meetings on Increasing Access to Mortgage Financing for CLT Homebuyers We want, at minimum, every CLT homebuyer to have access to a safe and secure first mortgage product. Even better, we d like CLT homebuyers to have a variety of mortgage products from which to choose! Background Even though homeowners apply for mortgages at a private bank, the federal government is very active in shaping what kinds of mortgages are available to whom and at what rate. One way that they do this is by providing mortgage insurance to borrowers that banks would otherwise view to be too risky. The Federal Housing Administration (FHA), the largest insurer of mortgages in the world, provides mortgage insurance on loans made by approved lenders throughout the US but it will not insure mortgages on CLT properties. This means that CLT homeowners are unable to access the most widely available mortgage products. Another way that the federal government incentivizes particular lending practices is through the secondary market. In this case, Government Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac tell banks that if they create a mortgage product that meets particular eligibility criteria, the GSE will purchase that mortgage from the bank. Banks like this because they do not need to hold the risk of a long-term investment like a mortgage and, with the cash from the sale, can turn around and make more loans. But, right now, CLT homebuyers don t have great access to the secondary market. The Federal Housing Finance Agency, which oversees the GSEs, is considering a duty to serve rule that would require GSEs to serve low- and moderate-income homebuyers in manufactured housing, affordable housing preservation and rural markets. This is part of a larger effort to pass housing finance reform that would address many of the structural problems on the secondary market that led to the foreclosure crisis. Our lack to mortgage products is especially troubling given that CLTs serve lower income families than most affordable homeownership programs, but yet, our delinquency and foreclosure rates are almost 10 times less than homeowners across all incomes in the conventional market. We offer incredibly low-risk business opportunities for the housing finance industry. On the Hill We ll be meeting with members of the House Financial Services Committee Subcommittee on Capital Markets and Government Sponsored Enterprises and the Senate Banking Housing & Urban Affairs Subcommittee on Financial Institutions and Consumer Protection. These committees oversee the GSEs and the government s role in banking. For 2015, our specific asks are to: 1. Please support effective credit for the GSEs to improve access to credit for buyers of permanently affordable homes in the duty to serve rule. In the rule, the term shared equity homeownership programs will be used to refer to us. Your Story This is your FINANCING Story. The specific information that you want to impart is: 1. Being a CLT homeowner has had a positive impact on your life; 2. While you obtained a mortgage, you had to jump through extra hurdles because CLTs are not eligible for many mainstream mortgage products; and 3. You want to make sure that other CLT homeowners have access to mortgage financing.
9.67% 8.57% 6.30% 1.98% 1.62% 1.30% 2008 2009 2010 Loans on Permanently Affordable Homes Loans on Market-rate Homes