Knowledge Building Across Community Land Trusts In Europe and the United States Belgium – July 1, 2 nd , 2013 Champlain Housing Trust: Thirty years of Community Land Trust Development and Stewardship Brenda M. Torpy, CEO
Jan 29, 2015
Knowledge Building Across Community Land Trusts In
Europe and the United States
Belgium – July 1, 2nd, 2013
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
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
Lease and house are mortgage-able
“Homeowner” / “Leaseholder”
CLT as an Innovative Model of
OWNERSHIP
CLT as an Innovative Model of
ORGANIZATION
A nonprofit corporation with member- ship open to anyone living within the CLT’s geographically defined “community”
Balance of interests on the governing board
6,000 Voting Members
Leaseholders:
Homeowners
Co-op owners
Tenants
Municipal Officials
General Members
Governing Board
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 choiceLivable wage commitmentMarket Competitive wage/benefits
78 Employees
Homeownership
Property Management
Community Relations
Finance
Human Resources
and Administratio
n
Development
Operations
Security and Mobility
Shelters for the Homeless and Housing for Persons
with Special Needs
Community Services &Nonprofit Office Space
Neighborhood Parks
Rentals1,800 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
Homeowner saves
average of $250 per month
Cost : $200K
With CHT/CLT
)
Cost : $150K
Market Value
Purchase
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-occupiedhomes in the Burlington MSA increased by 85%, the median price of houses and condomin-iums 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 $12,000Avg. annualized rate of return on the homeowner’s initial investment: 25.4% IRR
Social Mobility for CHT Homeowners
Lands in Trust, Homes That Last
Enhancing Residential Security
• How well has CHT performed in protecting its portfolio of owner-occupied housing?
• How well has CHT performed in preventing foreclosures?
• How well has CHT performed in helping low-income households succeed at homeownership?
National Foreclosure RateDecember 2008
2.97%National CLT Foreclosure Rate
December 2008
0.5%CHT Foreclosure Rate
December 2008
0.2%
Enhancing Residential Security
25-year total
0.1%
Success of first-time homeowners
(Herbert and Belsky, 2008)
50%
Enhancing Residential Security
Success of first-time homeowners
(Reid, 2004)
47%
Success of CHT’s first-time homeowners
91%
Champlain Housing Trust
UN World Habitat AwardJuly 2008
Champlain Housing TrustUN World Habitat AwardStudy Visit, June 2009
CLT Resource Center Burlington Associates in Community Development LLC
www.burlingtonassociates.com
National CLT Network www.cltnetwork.org
Champlain Housing Trustwww.champlainhousingtrust.org