Lexington Community Land Trust Annual Report 2015-2016
Contents Table of Contents Letter from the Executive Director Our Mission & Values Our History Our Portfolio Our Neighbors 12 15 16 Financial Summary and Statement Donors and Sponsors Board of Directors and Staff
Conference Attendees at the Neighborhood cookout during the 2015 National CLT Network Conference Dear Members and Friends of the CLT, June 20, 2016 This year, Lexington Community Land Trust reached a long-awaited milestone: from January through April, original Davis Bottom residents turned the keys to their own new single-family Land Trust homes in Davis Park truly a cause for celebration! Our neighbors gaze across the new DeRoode Street to land where temporary housing stood until March, eager for the Southend Park to re-emerge from the construction dust. Even before completion of the first five single-family homes, Lexington CLT couldn t wait to share the story of Davis Bottom and the Newtown Pike Extension Project. We were selected as host of the 2015 National Community Land Trust Network Conference, held in October at the downtown Hilton. With the help of many local and Project partner sponsors, we were able to highlight this project and the great opportunities for Transportation Projects and Permanently Affordable Housing providers to partner. On the second day of the conference, Lexington CLT s housing portfolio looked like this: The fourteen Davis Park View rentals had been fully occupied for almost a year. The Community Land Trust partnered with AU Associates and their development company to beautifully construct the two fourplexes, two duplexes, and two single-family rental homes on DeRoode Street. The construction of Lexington s first CLT/Habitat partnership home was well underway. For this home, Lexington Habitat for Humanity volunteers and partners built a three-bedroom home according to CLT plans, realizing one low-income buyer s life-long dream! 1
James Monroe Homes broke ground on the next four single-family ownership homes while the residents of Davis Park hosted a neighborhood cookout and shared their own histories with three hundred friends of Permanently Affordable Housing (PAH) attending the conference - from around the country and the world. Davis Park s twenty-six acres are re-forming before our eyes. The land is higher by eight to twelve feet clearly no longer a bottomland. Those neighbors who have stayed in this historic community, leading and holding the neighborhood together despite the challenges, are welcoming new neighbors. Eleven more homeownership lots are in the pipeline, with six ready now for qualifying households. We re so excited to be entering into our first year as a Membership Organization! We urge you to join us and add your voice to the CLT as we work to express the community s vision for Davis Park and advocate for permanently affordable housing throughout Lexington and Fayette County! Regards, Barbara Navin Executive Director Executive Director Barbara Navin and other Board Members work on the CLT/Habitat for Humanity Home. 2
Our Mission To create permanently affordable homes and strong communities in Lexington and Fayette County. Our Values Permanent Affordability Lexington Community Land Trust (LCLT) believes in Permanently Affordable Housing and provides high quality, affordable homes in Lexington and Fayette County for purchase and rent by individuals and families of low-income. LCLT will also develop mixed-use commercial and residential buildings in Davis Park. Strong Communities LCLT believes in strengthening communities by facilitating community control of land and over neighborhood development. Stewardship LCLT ensures the permanent affordability of our homes through the responsible and sustainable use of public subsidies and land. 3
Our History Homes along DeRoode St in 1980. 1998-2007: Building a Road, Preserving a Community In 1998, the Kentucky Transportation Cabinet, with additional assistance from the Federal Highway Administration, began to reexamine whether it was possible to complete a Lexington road project years in the making. The agency had long desired to extend the Newtown Pike beyond Main Street, but previous efforts had stalled. The most recent attempt, in 1974, was cancelled due to strong community pushback when the Extension s plans called for the displacement of 140 families from the historically low-income neighborhoods of Davistown(also known as Davis Bottom) and Irishtown. These neighborhoods were some of the oldest in Lexington, originally serving as enclaves for newly freed persons and immigrants after the Civil War. Due to an Executive Order issued in 1994, federally-funded road projects must study the impact that planned highways would have on low-income communities and communities of color and take steps to reduce those impacts through an Environmental Justice mitigation plan. In 2002, The Newtown Pike Extension Project plan analyzed the impact that the Extension would have on Davistown and surrounding areas. It was determined that Davistown, which at the time had one of the lowest median incomes in Lexington and a large African-American population, would be most adversely affected by the project. In order to prevent negative impacts including the destruction of community cohesion and the displacement of residents, the Project looked for tools that would (1) provide long-term protection of the land in the neighborhood; (2) provide improved and energy-efficient housing options for the residents; and (3) preserve the affordability of the neighborhood to prevent future displacement. 4
2008-2013: The Community Land Trust Model Comes to KY Given these needs, the Community Land Trust model was ultimately chosen as the best fit for the Project. In 2008, the Lexington Community Land Trust was incorporated and became the first CLT in Kentucky. In the Community Land Trust model, the non-profit CLT retains ownership of land while lower-income households purchase the home on that land at an affordable price. The CLT provides long-term support to the community and serves as the steward of the land, signing a 99-year renewable land lease with the homeowner, giving the homeowner exclusive use of the land. This land lease also includes a restricted resale formula ensures that the next buyer will purchase the home at an affordable price. This keeps the house permanently affordable, owner after owner. During this period, members of the Project Team met with neighbors to ensure their participation in the decision-making process. As a result of these discussions, the Project provided temporary housing in Davis Bottom at no cost to the residents. This helped maintain cohesion and offered a strong incentive for neighbors to sustain the community during redevelopment. The Project provided additional funding to reduce the cost of homeownership and renting in the newlybuilt homes. March 15, 2013 Temporary housing stands in the distance as construction crews work on the new DeRoode St. and box culvert. 5
2014-2016: Davis Bottom Becomes Davis Park The construction of replacement homes for the neighborhood could begin only after the State completely re-shaped the land in order to reduce flooding, and rebuilt neighborhood infrastructure (roads, utilities, storm sewer, noise wall, etc.). The land was raised eight to twelve feet and could no longer accurately be described as a Bottom. To reflect this, neighbors voted on a new name: Davis Park. The rental homes were the first to be constructed. In 2014, the CLT and AU Associates formed a Low-Income Housing Tax Credit partnership for these first fourteen homes, named Davis Park View. The project was completed in November 2014, and is managed by AU Management. Construction on the first homeownership homes began the following summer in August 2015. In order to help an original resident on a fixed-income become a first-time homebuyer, Lexington CLT and Lexington Habitat for Humanity partnered on a pilot project to complete the first Cape-style home in Davis Park. This project, completed in January 2016, also marked the first CLT home purchased in Kentucky. As the affordability is permanent, this home will be able to serve lower-income families for generations. At the height of construction of the Habitat/CLT home, Lexington Community Land Trust hosted the 2015 National CLT Network Conference for those working and supporting Permanently Affordable Housing. The unique partnership between the CLT and the road project was highlighted as an innovative model for other communities throughout the United States. During the National CLT Network Conference, James Monroe Homes broke ground in Davis Park, and, in Spring 2016, the remaining original resident families moved from temporary housing into their new, permanently affordable homes. Three original residents became CLT homeowners and another became a renter of a single-family home. Lexington CLT s first development is now home to 19 households: a mix of renters and homeowners, old and new, youth and seniors. The organization is excited to welcome even more people to the neighborhood through its next projects: 11 more single-family CLT homes and an office building for the CLT that will also provide space to another local nonprofit.
Our Portfolio Persons interested in applying for homeownership may contact Lexington CLT at 859.303.5223 or lexingtonclt.org for application and eligibility requirements. Persons interested in applying for Davis Park View may contact AU Management at 859.268.0019 or TTY 711 to determine availability. 7
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Our Neighbors Lexington CLT serves low to moderate-income households through its Permanently Affordable Rental and Homeownership Programs. See below for information on who we are currently serving in Davis Park as of June 2016. Adults in Davis Park by Gender 1 female homeowner and 3 male homeowners live in Davis Park. 9 single mothers live in Rental Homes in Davis Park. Households with Children under 18 living in Davis Park Rental Homes No children under 18 currently live in the Homeownership homes. 9
Rental Household Members by Age Homeownership Household Members by Age Rental Household Members by Race Homeownership Household Members by Race 10
Neighbor Spotlights Deanna Valentine lives at Davis Park View with her son Sam, who is a student at Harrison Elementary. Deanna spends time giving back to her community inside and outside of Davis Park. She was nominated and elected by her neighbors as the Tenant Representative on the Tenant Advisory Council. She serves as the Council's Treasurer, collects resident feedback, and represents the interests of the tenants at the quarterly meetings. She also volunteers her free time as a tutor with Nerd Squad, a local non profit that encourages an enjoyment and excellence in Science, Technology, Engineering, and Math. As a certified Holy Yoga Instructor, she enjoys staying active and is often seen riding bikes with Sam throughout the community. She likes living at Davis Park View because it gives her family "an affordable space to grow." Deanna and Sam ride their bikes on DeRoode St. underneath the Versailles Bridge. Kenneth Demus, Sr. serves as a Lessee Director on the CLT's Board. Kenneth Demus is a long time resident of the neighborhood. Kenneth was born and raised in Davis Bottom (now Davis Park) and returned to live in the community after selling his home in the East End in 2005. He didn't think he would ever own a home again, especially once he retired from the Fayette County Public School System where he was a bus driver training instructor. As a relocated resident, Mr. Demus and his family lived in the neighborhood six years before purchasing his new, affordable Bungalow home. Although the waiting time was longer than expected, Mr. Demus says, "I'm now able to say I'm the owner of a new, energy efficient home that makes me feel like I've accomplished something in my life." Kenneth serves on the Lexington CLT's Board of Directors. This year he was also selected to serve as a Resident Ambassador for Grounded Solutions Network in order to advocate for Community Land Trusts on a national scale. 11
Statement of Financial Position for Fiscal Year 2015-2016 12
The above figures are condensed financial information available at the end of June 2016: Audited reports from completed fiscal years, financial statements and disclosures by Hicks & Associates, CPA are available at the office of Lexington Community Land Trust. Independent Auditor's Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Organization as of June 30, 2016 and 2015, and the changes in its net assets and its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. 13
Financial Summary Income: The Newtown Pike Extension Project ensured startup operations funding to Lexington CLT, so that these funds, together with the interest they generate, could sustain the CLT while it focuses on the development of the Davis Park neighborhood. This funding reduces the need for constant grant writing/fundraising in these initial years. Note that the largest line for income is from Lexington Fayette Urban County Government (LFUCG), through which these federal and state dollars flow. This yearly income of $250,000 for operations began in fiscal year 2011, and will continue through fiscal year 2020, after which the CLT will generate all of its own operation funding through program income (land lease fees and other fees), grants, and fundraising. Financial Summary Expenses This year salaries for our two staff members make up our largest operating expense at 38%. In the future, salaries and wages and/or contract labor may increase as the need to increase staff capacity grows. The next largest was expenditures for hosting the four-day 2015 National Community Land Trust Conference here in Lexington (30%) On the income side, you ll see that we received conference sponsorship contributions totaling over that amount. This expense will be absent from the budget in FY2017. The third largest expenditure was for legal fees. These fees covered the cost of setting up required documents for the first Community Land Trust in Kentucky, Land Lease documents, title work, and the creation of an LLC to hold property. We can expect legal fees to decrease next year. 14
Our Supporters Our work is possible thanks to the support of our Partners and Donors. Thank you for your contributions over the past year! Kentucky Transportation Cabinet Federal Highway Administration Lexington-Fayette County Urban Government EHI Consultants Stites & Harbison Lexington Habitat for Humanity VisitLEX Community Trust Bank PNC Bank Housing Assistance Council Keeneland Kentucky Housing Corporation Kentucky Utilities University of Kentucky Ale-8-One Alltech Kroger Community Rewards Michler's Lexington CLT successfully hosted a free documentary about Davis Bottom during the National CLT Network Conference with the help of many generous sponsors. 15
Board of Directors and Staff 2015-2016 Lessee Directors Kenneth Demus Regina Cowan Alex Hicks Byron Mitchell General Directors Tom Blues Larry Forester, Treasurer Norman Franklin, President Pastor Kathy Goodwin Joan Whitman, Vice President Public Directors Pam Clay Young, Secretary and KYTC Representative Arthur Crosby, Lexington Fair Housing Council Jake Gibbs, 3rd District Councilmember Connie Godfrey, LFUCG Representative Carol Shanklin, FHWA Representative Staff Barbara Navin, Executive Director Maria Starck, Administration and Services Coordinator Executive Committee Pam Clay Young Larry Forester Norman Franklin, Chair Alex Hicks Byron Mitchell Joan Whitman Development Committee Larry Forester Norman Franklin, Chair Ed Holmes Clive Pohl Joan Whitman Finance Committee Larry Forester, Chair Norman Franklin Lynne Greer Rogers Personnel Committee Arthur Crosby Alex Hicks Carol Shanklin, Chair Resident Services Regina Cowan, Chair Kenneth Demus Alex Hicks Outreach and Education Committee Pam Clay Young, Chair 16