The Third Way: Community Control Over Land. Housing is a Human Right PLATFORM Foreclosures,...

The Third Way:Community Control Over Land

Community Control Over LandHousing is a Human Right

PLATFORM

Foreclosures,Evictions

andPublic Housing

PoliceBrutality

Commons(Schools;

buildings; parks; spaces)

Corporate Account-

ability

2012 Spring ActionBUILD A PLATFORMMOVE A MOVEMENT

Defining the Problem

Profit before People? How Did We Get Here?

Since 2007, 8 million households foreclosed.

Recent projections estimate, 8-10 million more may join

before the crisis ends.

5 million homeless people, 19 million people-less homes.

Defining the Problem

“What has taken place was not only

predictable, it is a consequence of

the very structure of the housing

system and financial system.”

- Michael Stone, Professor of Economics

University of Massachusetts

Defining the Problem

[INCOME INEQUALITY & DEBT]

1980 - 2012: flat wages for most, home prices up 188%, mortgage debt up 890%.

Defining the Problem

Defining the Problem

[GOVERNMENT POLICIES] 1980s-’90s

As savings dropped, • Housing finance moved from

local Savings & Loans banks to Wall Street’s Capital Markets.

• New financial instruments created to maximize profits for investors

• Speculative homeownership heavily promoted by U.S. gov’t

Growth of Sub-prime Industry:1994: 5 in 100 mortgages were sub-

prime2006: 1 in 5 mortgages were sub-prime

Defining the Problem

[HOUSING AS SPECULATIVE COMMODITY]• Predatory practices were aided by the following rampant myths

about speculative homeownership:• Owning a home is always a good investment• Homeowners are always better off than renters because they don’t

have a landlord• Mortgage debt is different than other debt • The “American Dream” of owning a home is attainable to anyone

willing to do a little hard-work and commit themselves

Defining the Problem

[HOUSING AS SPECULATIVE COMMODITY]

In Reality,

Only 20% of U.S. households own their homes outright (without a mortgage)

1 in 3 of us can’t afford housing costs & a conservative estimate of other basic essentials(e.g. food, medical care) - 25% homeowners, 50% renters.

Defining the Problem

Defining the Problem

What’s next - Wall St. Landlords?

Community Control Over LandHousing is a Human Right

PLATFORM

Foreclosures,Evictions

andPublic Housing

PoliceBrutality

Commons(Schools;

buildings; parks; spaces)

Corporate Account-

ability

What’s the Solution?

Why Community Control

PrivateBank; Corporation; Speculator; Homeowner

Why Community Control

Private

60% of all U.S. land

• 80% of that is owned by the wealthiest 10%

Bank; Corporation; Speculator; Homeowner

Why Community Control

Private

60% of all U.S. land

• 80% of that is owned by the wealthiest 10%

• Only 20% of U.S. households own their homes outright (without a mortgage)

Bank; Corporation; Speculator; Homeowner

Why Community Control

Private

Public

Bank; Corporation; Speculator; Homeowner

Government Center; Post Office; Library; Public Housing; Park

60% of all U.S. land

• 80% of that is owned by the wealthiest 10%

• Only 20% of U.S. households own their homes outright (without a mortgage)

Why Community Control

Private

The Third Way

Public

Bank; Corporation; Speculator; Homeowner

Community Control; Democratically Controlled Community Land Trust, Cooperative

Government Center; Post Office; Library; Public Housing; Park

What are Community Land Trusts?

How might CLTs be used to institute and model “Community Control over Land”?

2012 Spring Action

What about Community Land Trusts?

What are Community Land Trusts?

2012 Spring Action

The Third Way: Community ControlTransformative Wins

What are Community Land Trusts?

•Non-profit tax-exempt (501c3) organizations

2012 Spring Action

The Third Way: Community ControlTransformative Wins

What are Community Land Trusts?

•Non-profit tax-exempt (501c3) organizations•With open, place-based memberships

2012 Spring Action

The Third Way: Community ControlTransformative Wins

What are Community Land Trusts?

•Non-profit tax-exempt (501c3) organizations•With open, place-based memberships (that can be empowered to democratically make decisions)

2012 Spring Action

The Third Way: Community ControlTransformative Wins

What are Community Land Trusts?

•CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community.

2012 Spring Action

The Third Way: Community ControlTransformative Wins

HOUSING

LAND

What are Community Land Trusts?

•CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community.•“What’s on top” can be a home, a building, a garden, anything!

2012 Spring Action

The Third Way: Community ControlTransformative Wins

HOUSING

LAND

What are Community Land Trusts?

•CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community.•“What’s on top” can be a home, a building, a garden, anything!

and is owned (with resale restrictions) by homeowners, non-profit rental co’s, even businesses.

2012 Spring Action

The Third Way: Community ControlTransformative Wins

HOUSING

LAND

What are Community Land Trusts?

•CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community

BOTTOM LINE?

2012 Spring Action

The Third Way: Community ControlTransformative Wins

HOUSING

LAND

What are Community Land Trusts?

•CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community

BOTTOM LINE? Land can’t simply be sold to highest bidder on private market.

2012 Spring Action

The Third Way: Community ControlTransformative Wins

HOUSING

LAND

What are Community Land Trusts? •70% focus on an area greater than a single neighborhood•95% of CLT ground leases are for 99 years, renewable•59% of CLT units are rehabbed•95% of CLTs lease to homeowners, 45% have rental

2012 Spring Action

The Third Way: Community ControlTransformative Wins

HOUSING

LAND

How might CLTs be used to institute & model “Community Control over Land”?

2012 Spring Action

The Third Way: Community ControlTransformative Wins

LAND

HOUSING

How might CLTs be used to institute & model “Community Control over Land”?

•CLTs separate ownership of land and what’s on top of it (e.g. a home)

2012 Spring Action

The Third Way: Community ControlTransformative Wins

LAND

HOUSING

How might CLTs be used to institute & model “Community Control over Land”?

•CLTs separate ownership of land and what’s on top of it (e.g a home)

•CLTs hold the land off the market, enabling a “put people first” check on the housing market.

2012 Spring Action

The Third Way: Community ControlTransformative Wins

LAND

HOUSING

How might CLTs be used to institute & model “Community Control over Land”?

•CLTs separate ownership of land and what’s on top of it (a home)

•CLTs hold the land off the market, enabling a “put people first” check on the housing market.

•CLTs can empower community through direct democracy & an open place-based membership structure

2012 Spring Action

The Third Way: Community ControlTransformative Wins

LAND

HOUSING

How might CLTs be used to institute & model “Community Control over Land”?

The board of the CLT is typically made up of three representatives of the following groups in equal part:

2012 Spring Action

The Third Way: Community ControlTransformative Wins

LAND

HOUSING

How might CLTs be used to institute & model “Community Control over Land”?

The board of the CLT is typically made up of three representatives of the following groups in equal part:

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 is able to prevent speculation.

2012 Spring Action

The Third Way: Community ControlTransformative Wins

LAND

HOUSING

Third Way: Interim Proposal Model 1

Land Land: 501(c)3 Partner

Third Way: Interim Proposal Model 1

Land Land: 501(c)3 Partner• Restricts Resale • Owns land in perpetuity• Ground lease with community partnership

Third Way: Interim Proposal Model 1

Land Land: 501(c)3 Partner• Restricts Resale • Owns land in perpetuity• Ground lease with community partnership

Improvements: Democratic Community Partnership

Third Way: Interim Proposal Model 1

Land Land: 501(c)3 Partner• Restricts Resale • Owns land in perpetuity• Ground lease with community partnership

Improvements: Democratic Community Partnership• Essential:

o Resident(s)o General community memberso Community organization(s)

•  Important:o Property management partnero Resource partner o Other community organizations (Faith-based, Social

Services, etc.)• Examples of Vehicles

o 501(c)3, 501(c)2...

Third Way: Interim Proposal Model 2

LandLand: Democratic Community Partnership

Third Way: Interim Proposal Model 2

LandLand: Democratic Community Partnership• Restricts Resale • CLT owns land in perpetuity• Ground lease with homeowner, coop, non-profit...

Third Way: Interim Proposal Model 2

Land

Improvements: Homeowner, Coop, Non-Profit

Land: Democratic Community Partnership• Restricts Resale • CLT owns land in perpetuity• Ground lease with homeowner, coop, non-profit...

Third Way: Interim Proposal Model 2

Land

Improvements: Homeowner, Coop, Non-Profit• Responsibilities: Taxes, repairs & improvements• Restrictions: 

o Use (ex. owner must occupy, could require partnership decision making on major shifts)

o Resale (limited or no equity)

Land: Democratic Community Partnership• Restricts Resale • CLT owns land in perpetuity• Ground lease with homeowner, coop, non-profit...

Third Way: Interim Proposal Model 3

LandLand: Democratic Community Partnership

Third Way: Interim Proposal Model 3

LandLand: Democratic Community Partnership• Restricts Resale • CLT owns land in perpetuity• Rent-Only lease with individual, non-profit or

business

Third Way: Interim Proposal Model 3

Land

Improvements: Rent Only

Land: Democratic Community Partnership• Restricts Resale • CLT owns land in perpetuity• Rent-Only lease with individual, non-profit or

business

Third Way: Interim Proposal Model 3

Land

Improvements: Rent Only• No ownership stake - leases only the improvement • Direct control of land and improvements• But, could hire a management company or non-profit

Land: Democratic Community Partnership• Restricts Resale • CLT owns land in perpetuity• Rent-Only lease with individual, non-profit or

business