2 VINELANDERS COMMUNITY LAND TRUST A SELF BUILD COMMUNITY LAND TRUSTOFKANSAS CITY, MISSOURI
3 Vinelanders Community Land Trust Mission Statement “To stop generational poverty in its track by implementing a non traditional approach to housing, by using the self build philosophy from Europe. This program will provide affordable homeownership to people who can’t presently afford today’s cost of homeownership”
4 WHO IS VINELANDERS CLT?VINELANDERS COMMUNITY LAND TRUST 2360 E 12TH SUITE B KANSAS CITY, MO
5 Vinelanders Community Land Trust Is Membership Based OrganizationRecognized as an 501 C 3Incorporated March 1, 2010General Members/LeaseholdersCommunity/ResidentsOther Neighborhood Groups
6 What are Community Land Trust? Community Land Trusts (CLTs) are nonprofit organizations that provide homeownership for underserved families by:Acquiring land and retaining title to itSelling improvement ONLY, subject to 99 year renewal “ground lease”, at deeply subsidized pricesGuaranteeing long-term affordability of the homes through resale and income restrictionsAllowing community to control use, disposition and affordability of buildings located on CLT owned land.
7 CLT HISTORYThe Community Land Trust (CLT) model of affordable housing was born out of a search for a creative and innovative way to address the housing problem at the time. The first CLT in the USA, New Communities, Inc. was established in 1968 in rural Georgia. The roots of the CLT model in the US can be traced back to several thinkers including Slater King, Faye Bennett, Robert Swann, Ebenezer Howard, Arthur Morgan, and Ralph Borsodi and social movements in the US and abroad such as the land and village-gift movement associated with India’s freedom against colonial rule. Nearly 250 CLTs are know to have existed or still being formed in the United States.
8 HOW DO THEY WORK?1. The CLT model removes the cost of land from the housing price by having the land and the housing owned by separate entities. 2. A private, nonprofit corporation acquires land parcels in a targeted geographic area with the intention of retaining ownership of the land for the long term. 3. The non-profit organization then provides for the private use of the land through long-term ground lease agreements. 4. The leaseholders may own their homes or make other improvements on the leased land, but resale restrictions apply.... THESE RESTRICTIONS PREVENT SPECULATION. 5. In the CLT model, the rights, responsibilities and benefits of the residential property are shared between individual homeowners and the non-profit corporation which represents the interests of its leaseholders and a larger community.
9 HOW DO THEY WORK?Over the course of the last 30 years, tens of thousands of low-income housing cooperatives have been lost because tenants got bought off or sold out by their boards. How do CLTs prevent this problem? TRIPARTITE GOVERNANCE! The board of the CLT is made up of three groups of stakeholders: 1. Tenant/Leaseholder Representatives 2. Neighborhood Representatives 3. “Experts” and Community Leaders Because power is shared between these three groups, a set of checks and balances prevents speculation by making it extremely difficult for tenants to flip or sell their homes.
10 HOW DO THEY WORK?Bottom Line: The community land trust owns the land, and leases it for affordable housing. The deed, the lease for construction on the land, the CLT by-laws, and any residential leases all require that the housing be permanently affordable. The land can never be traded or sold to the highest bidder on the private market.
11 HOW DO THEY WORK? THE MONEY Money is the big problem when it comes to building support for developing housing—politicians say it's too expensive to create and maintain housing for low-income people. Mixed Income (a real mix of incomes) Commercial Space (higher rents on commercial tenants help subsidize low residential rents—while also offering cheap commercial rent for neighborhood-based small businesses) Non-Profit Status
12 HOW DO THEY WORK? – THE MONEY Most common revenue sources: Federal Funds, Private Foundations, Local Government, Individual Donors and CLT member dues, Income from investments, intermediaries, grants from private businesses, State government, other charities.
13 FANNIE MAE RESPONSE*“The CLT form of homeownership represents the only true affordable housing preservation strategy for single-family for-sale housing” – Fannie Mae *CLTs control housing costs by permanently limiting land costs and locking in subsidies to benefit one homeowner after another, eliminating the need to secure additional subsidies upon each resale
14 MEMBERS PARTICIPATE 100%Vinelanders Community Land Trust wants to assure that other funders that our members are investing in their support of the Community Land Trust. We promote an environment of self-sufficiency instead of an environment of “ENTITLEMENT” assistance. That’s why on-going participation is required.
15 WHERE DO THE SELF-BUILD FUNDS GO? *Support Operational Expenses *Lot Purchases *CAD Purchases *Storage Expenses for Construction Material *In House Educational Workshops: A. Green Technology B. Sustainability
16 VINELANDERS INTERNAL ONGOING FUNDRAISING FOR FUNDS *External Fundraising *Grants *Donations *In Kind Donations *Private donations *Foundations *Internal fundraising will ensure that the organizational goals continue to be met
17 VINELANDERS CLT OBJECTIVES *Preserve Affordable Homeownership for Future Residents *Promote Homeownership for Low-Income Households veterans, disabled and immigrants *Protect Housing Security for The Disadvantage Population *Provide Safety Net for Local Residents
18 OUR GOALSTo create a self build group that includes local residents from the 3rd and 5th district. Vinelanders Community Land Trust is also a housing advocacy group and not for profit housing developer. In 2010, we held presentations at the Northeast Library focusing on “Land and Housing,” and creating a Community Land Trusts. In 2012, as an extension of that class, we then held presentations at our office at 2360 E 12th St Suite B in Kansas City, MO. Vinelanders CLT is the first self build community land trust in the country
19 VINELANDERS GOAL FOR 2014*Our goal is 500 members *Reached goal of 600 members *Over 1,125 people are general members and attended a presentation. *Membership dues are $15.00 per month *The internal funding for the 12 months is $108, *This is an example of Self-Building making a difference.
20 Vinelanders Targeted District is the 3rd and 5th District Future District 1st 2nd 4th and 6th *Vinelanders will serve a population of very low, low and moderate income resident who reside in the urban core ,which includes the intersection of Truman Road South to Bannister then Troost Avenue East to Highway 435 that is the 3rd and 5th District. *VCLT recognize that this program will provide the opportunity for all of the urban core resident to have an opportunity to become homeowners and become vested members of the community at large.
21 WHAT IS SELF BUILD?“ Self-Build” is the practice of creating an individual home for yourself through a variety of different methods. The term ‘self-build” is specifically used in the UK and Ireland when an individual obtains a build plot and then builds their own home on the plot. The self builder’s input into this process varies from doing undertaking the actual building work to contracting out all the work to an architect or building package company”.
22 VINELANDERS SELF-BUILDERS Vinelanders self-build group on the other hand have every incentive to design their house in a way that maximizes their long-term usability, convenience and cost effectiveness. A self built house are optimized to match the needs of their future users. Where land prices permit self builders typically aim for far more pleasant ratios between build room area and lot area than speculative builders. Self build control the cost by buying good quality items suited to their specification and not the builders.
23 WHY A SELF BUILD COMMUNITY LAND TRUST? Several years ago, Alice Goodlow identified CLT's as a solution to lack of housing permanently affordable to the extremely poor, and she began to work toward creating a Community Land Trust in Kansas City, Mo. and would also benefit the residents in Kansas City that also have thousands of vacant properties, both vacant land and vacant buildings. Vinelanders CLT has been working to inventory vacant properties and develop a plan for their use.
24 WHY IS SELF BUILD IMPORTANT The ability to chose your location in the community. The ability to design a home to meet you lifestyle and/or possibly expanding family’s requirements. The ability to get more “Bang for your Buck’. Possibly the major reason currently where the credit crunch has encourage large volume developers to sell off their land banks at considerable discount effectively play right into the hands of self builders. The ability to design a home utilizing green technology and innovative products such as grey water system, Nudura insulated concrete forms, geothermal, and solar panels. The ability to live in a more eco friendly and sustainable property than otherwise available. The overwhelming sense of achievement that gained from seeing such a venture from inception through design to completion.
25 SELF-BUILD IS GOOD FOR THE ENVIRONMENT *Co-housing *Artist’ collectives *Sharing childcare of home education *Elderly people living together *Sexual orientation *Cultural or ethnic group common interest group *Permaculture/land settlement *The list goes on and on
26 WHY A SELF BUILD COMMUNITY LAND TRUST Portland Oregon has several of the nation's leading Community Land Trusts. Vinelanders Community Land Trust first met with people at the Northeast Library in 2009, and they've provided a great deal of guidance to the community as we develop our own cooperative models for housing development. As our members continue to live in rent old houses and apartments they decided a Self Build Community Land Trust would work for our community.
27 WALTER SEGAL (1907 – 1985) Walter Segal (1907-1985) Was an architect who is well-known for designing a self-build housing system based on a timber frame construction. Designed initially as a temporary and cheap housing solution for his family, Segal soon realized its durability and potential as a system that could be employed by others wanting to build their own homes. The modular system is notable for its flexibility and for its openness to user interpretation, both in the building process itself and in its future use. It empowers the user-builder to take control of their environment and can be seen as a critique of the homogenous mass housing of the time that lacked any capacity for participation or personalization.
28 Vinelanders CLT Stewardship MonitoringInsurance, occupancy, maintenance, etc.Resale administrationReceive notificationCalculate resale priceIdentify member buyerManage transfer – issue new leaseConflict resolution, when necessary
29 VINELANDERS CLT DUAL OWNERSHIP HOME LAND CLT separates ownership of land from home.* Land Trust retains ownership of land.* Homebuyer buys – and owns- the home.* Land Trust leases land to homeowner.
30 CLT vs. Deed Restriction Deed Restriction Land Trust Can preserve affordability for a fixed period of time (ex. 50 years) Relies on Title co. to enforce restrictions Frequently rely on sellers to find buyers Monitoring and administration generally staffed by the local government No dedicated revenue for administrationCan preserve affordability for an indefinite period of time Land ownership insures enforcement CLT generally finds eligible buyers Specialized stewardship entity (CLT) responsible for monitoring and administration Ground lease fees support administration costs
31 Resale Restrictions: Share Appreciation Goal: Permanent Affordability Method: Limited Equity Provision Reasoning: All Agree that… Homes should be affordable without the CLT structure could not purchase a home in exchange for opportunity agree to pass it on
32 Talking Points: How Do You Sell A CLT 1. Community Land Trusts are a proven mechanism for communities to control their land and housing forever, without fear of external or internal threats.2. CLTs do not depend on government handouts! They can't be slashed after the next election, or vetoed during state budget negotiations.3. Every CLT is different. The model provides flexibility for many approaches—including consolidating homesteaded or “occupied” homes into a collective, collaborative system of self-help housing.4. CLTs are PART OF THE SOLUTION—they're not the whole solution. Right now they're a missing piece of the public discourse on the housing crisis, a radical new approach that recognizes housing and self-determination as human rights, and inextricably linked.5. CLTs can define “affordability” however they want—they're not forced to follow the government's bogus AMI-based guidelines for affordable housing.
33 Talking Points: How Do You Sell A CLT 6. We need fresh ideas, not the same old arguments about government subsidies, or individual-based non-systemic solutions like principal re-negotiations. 7. We're in a crisis. Nationally, the inventory of foreclosed and distressed properties has reached astronomical proportions. CLTs can take title to the land and lease these buildings to the appropriate entity without displacing residents if they are inhabited, and creating new low-income housing if they're not. 8. CLTs can provide a path to legalized and secure homesteading. Banks or investors who own foreclosed or vacant buildings that are being “occupied” can be pressured to “gift” those properties to a CLT, or to sell it at a much lower price that local government can be pressured to pay, and the CLT can lease the building(s) to a tenant’s association or limited-equity coop run by residents. Homeowners and tenants facing eviction because they cannot afford even a re-structured mortgage can be protected by title transferred to a CLT.
34 Vinelanders CLT Resale Formula * CLT members lease to purchase house for $90,000 * At the time of purchase CLT home was appraised at $105, * Vinelanders sell home for material cost $ for 20 years $4,500 per year X 20 = $90,000 making the home affordable * At the time CLT homeowner seeks to resale the CLT home for the appraised value of $125,000- an appreciation of $20,000. * Twenty-five percent (25%) of $20,000 is $5,000 * The purchase price equals what the CLT homeowner original paid ($90,000) plus 25% of the appreciation in value ($5,000). * Therefore the CLT homeowner can resell the CLT home (to either the CLT or another low income purchaser) for the Purchase Option Price of $95,000
35 Vinelanders Leasehold Interest: * The right to use and occupancy of real property by the existence of a lease agreement. The agreement includes: * A stipulated period of time and renewal terms/options * Cost associated with the lease * Resale restrictions * Other terms
36 Benefits: Owner/Leaseholder Ability to use and improve the propertyRight to Sell and ProfitWill to survivors
37 Who Benefits From Vinelanders Community Land Trust Self-Build? *Working families in high-cost areas, as well as resort communities * Communities experiencing rapid home price appreciation leading to displacement of working families
38 Breaking Down the Details Some Facts & Figures The majority (70%) of CLTs do not focus on a single neighborhood but serve multiple neighborhoods, the city as a whole, the county, or even multiple counties and serve low and moderate income residents in the larger geographic region. The duration of CLT’s ground lease range from 20 to 99 years, with 99 years being the most frequently used (95%) term. Ground leases are renewable. 59% of CLT units are rehabilitated, while 41% are new construction. 95% of the responding organizations have units for homeownership, 45% of responding organizations reported that they also have rental units in their housing portfolio. 80% have less than 100 units including both homeownership and rental. [Source: Lincoln Institute National Study]
39 How does A Person Get Started? *Visit our website and print off membership application * The membership dues are non-refundable * As a member you're’ not bind to remain to a member, you can cancel by phone or in person, to inform VCLT that you know longer want to be a member Your decision will be rescinded immediately upon your request. * VCLT does not print payment invoices for the membership fee & self build due.
40 What Else????This training is a work in progress, like all of our CLT work. There are a lot of missing pieces here, and if our organizations are going to be able to use these tools we need to be refining and developing them together. So we welcome: Questions? Additions, Subtractions? Critiques? Etc?