PUTTING THE DREAM OF HOMEOWNERSHIP WITHIN REACH COMMUNITY LAND TRUST PUTTING THE DREAM OF HOMEOWNERSHIP WITHIN REACH

NORTHSHORE HOUSING INITIATIVE We are a 501(c)(3) private nonprofit corporation. The NHI business model and funding are dedicated to the purchase of land assisting moderate income homebuyers and providing for the long-term affordability of workforce housing in St. Tammany Parish. We are on open-membership organization with a 9-person board of directors and a full time staff. We are one of more than 200 community land trusts nation-wide and 3 in Louisiana.

THE PROBLEM: NEED FOR WORKFORCE HOUSING - Population growth in St. Tammany - More service workers - Land price escalation

SOLUTION: SHARED EQUITY MODEL HOMEBUYER BENEFITS Below market rate purchase price. Safe loans with low fixed rate financing. Tax advantages of ownership. Lower monthly housing cost. Membership in a homeowner community. COMMUNITY BENEFITS Expanded options for moderate income homeownership. Community land trust conserves land. Resale restrictions preserve workforce housing. Vital service workers can afford to live and work in the Parish.

NHI Homebuyer Testimonial “I have always dreamed of owning my own home one day. Summit Funding, a Rural Development Guaranteed Loan and Northshore Housing Initiative land purchase subsidy with God’s grace and a lot of hard work made the dream come true.” ~ Gena Richardson www.northshorelandtrust.org (985) 246-7050

Other Eligibility Criteria NHI ELIGIBILITY Income = 80% or less of MHI Other Eligibility Criteria Household Size Income Maximum 1 $35,500 2 $40,550 3 $45,600 4 $50,650 5 $54,750 6 $58,800 7 $62,850 8 $66,900 - Majority Age - must be 18. - Citizen of USA or registered alien. - Creditworthy - pre-qualified by St. Tammany Homeownership Center or NHI mortgage lending partner: - Debt to income ratio. Income sufficient to afford the monthly cost of homeownership. Financial resources and credit score. Asset limit.

NHI ROAD TO HOMEOWNERSHIP

HOMEBUYER TRAINING Northshore Housing Initiative homebuyer counseling and training classes are conducted at: St. Tammany Homeownership Center, 1400 North Lane, Mandeville, LA 70471 and at New Day Homeownership Services, 303 South Military Road, Slidell, LA 70461 Experienced counselors evaluate your credit to determine mortgage readiness and prequalification limits. They can help develop a plan to overcome any credit or savings obstacles and schedule you for required homebuyer training classes. Homebuyer Training guides buyers through all steps of the home buying process and provides information on protecting and preserving their home and investment. The 9-hour workshop consists of three 3-hour evening classes and is held every other month. Fee $35 Financial Fitness teaches basic financial and money management with an emphasis on building financial responsibility and long-term financial success. The 12-hour workshop consists of four 3-hour evening classes held over two weeks. It is held every month. Fee $35 Home Maintenance These classes are designed to help new homeowners understand basic home systems and preventive maintenance. Free

NHI - HOW IT WORKS Mortgage lender pre-qualifies buyer with CLT purchasing land. Homebuyer locates house to purchase or build. - Homebuyer leases land from CLT. Example: House price $180,000 Homebuyer mortgage $144,000 CLT purchases land $36,000 Shared appreciation agreement.

NHI LAND LEASE OVERVIEW The ground lease is a document signed at closing that details the terms of purchase assistance from NHI. Some of the key points are: - The lease has a 99-year term. - The lease is inheritable. - The lease requires owner occupancy. - A resale formula sets shared equity on appreciation and keeps the land affordable for the next buyer. - Homeowner pays a monthly ongoing lease fee to NHI of $45/month. - Homeowner enjoys automatic membership in the Community Land Trust. - The homeowner agrees to insure home, pay taxes and maintain home to protect the community investment.

Shared Appreciation Factors NHI RESALE EXAMPLE Resale prior to 5 years Shared Appreciation Factors Percentage Ownership 25% 0-5 Years 35% 6-10 Years 45% 11-15 Years 55% 15+ Years Original sales price and appraisal price = $180,000 (portion owned by homebuyer 80%) Appraisal at resale $210,000 = Appreciation in appraised value of $30,000 (increase in value attributed to ownership by homeowner = $30,000 X 80% = $24,000 times shared appreciation factor of 25% = $6,000. At resale the homeowner would receive their original investment of $144,000 plus $6,000 = $150,000 = sales price to next owner. The remaining appreciation would stay with the property to allow it to be sold as affordable to the next buyer. When you sell your land trust home the subsidy you received to help you purchase is “paid forward” thus helping another family also afford to purchase an affordable home in the community.

COMMUNITY LAND TRUST “Putting the dream of homeownership within reach Northshore Housing Initiative 222 North Vermont St. Covington, Louisiana 70433 985-246-7050 www.northshorelandtrust.org