Rencontres Internationales De Lyon 5 et 6 Juillet, 2013 Chaire Internationale Habitat Cooperatif et Cooperation Sociale Champlain Housing Trust: Thirty years of Community Land Trust Development and Stewardship Brenda M. Torpy, CEO
Founded in 1984 as the Burlington Community Land Trust
Community Land Trust What is a Community Land Trust (CLT)? How has does the Champlain Housing Trust fit into this definition?
CLT as an Innovative Model of OWNERSHIP Community ownership of the land Individual ownership of the structural improvements Long-term ground lease, balancing the interests of both parties
CLT as an Innovative Model of OWNERSHIP An individual household owns the structural improvements Nonprofit corporation (i.e., the CLT) owns the land
CLT as an Innovative Model of OWNERSHIP Ground lease ties house & land together Lease is long-term Lease is balanced Lease is inheritable Homeowner / Leaseholder Lease and house are mortgage-able
CLT as an Innovative Model of ORGANIZATION A nonprofit corporation with membership open to anyone living within the CLT s geographically defined community Balance of interests on the governing board
6,000 Voting Members
Governing Board General Members Leaseholders: Homeowners Co-op owners Tenants Municipal Officials
CLT as an Innovative Model of OPERATION Preferential option for the poor Perpetual responsibility: security of tenure for residents. Perpetual affordability: preserving access to land and housing for persons of modest means.
$ 250 million in assets $ 9 million operating budget $ 90 million in annual development
Employer of choice Livable wage commitment Market Competitive wage/benefits 78 Employees
Operations Community Relations Development Homeownership Property Management Finance Human Resources and Administration
Security and Mobility
Shelters for the Homeless and Housing for Persons with Special Needs
Community Services & Nonprofit Office Space
Neighborhood Parks
Rentals 1,800 apartments $18,000,000 in gross annual rent
New Construction on Vacant Sites Rentals
Neighborhood Improvement
Mixing Housing and Commercial Space
Repurposed Rural Factory
Conversion
Affordable Waterfront
Rehabilitation & Reuse
Housing Cooperatives
Homeownership 525 homes in shared equity homeownership portfolio 2 Home-ownership centers 3-County Home rehabilitation Program Community-wide financial counseling and home education
Single-family, Owner-occupied Houses
Condominiums
How Shared Equity Works with CHT
Purchase Market Value With CHT/CLT Homeowner saves average of $250 per month ) Cost : $200K Cost : $150K
Resale Seller receives 25% of Balance added to existing CHT $ = more affordable to next Buyer Market value is $220K Total appreciation = $20K + their equity Seller receives $5K Market $220K Less CHT$ $65K CHT Price $155K!
Permanent Affordability! Market increased by 10% Grant increased by 30% CHT Price increased by 3.3%
CLT Homeownership: Does it work?
Expanding Access to Homeownership Over CHT s 25-year history, for all 629 households: 100% earned less than 100% of median income 82% earned less than 80% of median income
Preserving Affordability During the 1999-2006 real estate boom, in particular, when the median sales price of owner-occupied homes in the Burlington MSA increased by 85%, the median price of houses and condominiums reselling through CHT increased by only 35%.
Build Wealth for CHT Homeowners Reselling after 5 ½ years, the average CHT homeowner got back his/her initial investment and walked away with a wealth gain of $12,000 Avg. annualized rate of return on the homeowner s initial investment: 25.4% IRR
Social Mobility for CHT Homeowners
Enhancing Residential Security How well has CHT performed in protecting its portfolio of owneroccupied housing? How well has CHT performed in preventing foreclosures? How well has CHT performed in helping low-income households succeed at homeownership?
Enhancing Residential Security National Foreclosure Rate December 2008 2.97% National CLT Foreclosure Rate December 2008 0.5% CHT Foreclosure Rate December 2008 0.2% 25-year total 0.1%
Enhancing Residential Security Success of first-time homeowners (Reid, 2004) 47% Success of first-time homeowners (Herbert and Belsky, 2008) 50% Success of CHT s firsttime homeowners 91%
Champlain Housing Trust UN World Habitat Award July 2008
Champlain Housing Trust UN World Habitat Award Study Visit, June 2009
National CLT Network www.cltnetwork.org Champlain Housing Trust www.champlainhousingtrust.org CLT Resource Center Burlington Associates in Community Development LLC www.burlingtonassociates.com