Brenda Torpy BWH Boston 2011

BRING WORKERS HOME

National Association of Realtorsand

National Housing ConferenceBoston MA

July 28 2011

Regional Forum on Workforce Housing

Shared Equity HomeownershipCommunity Land Trust Model

WORKFORCE HOUSING IN ACTION

Community Land TrustMembership OrganizationElected BoardResidents elect their own seats

2010 Community Land Trusts in the USA

$ 220 million in assets$ 5 million operating budget$ 40 million in annual development

1,500 apartments$18,000,000 in gross annual rent

High Cost Market

Smart growth:Smart growth:Mixed useMixed use

Multi-family Housing Cooperatives

Nonprofit Office Space & Community Facilities Nonprofit Office Space & Community Facilities

Shared Equity Homeownership

500 homes in shared equity homeownership portfolio

2 Home-ownership centers

3-County Home rehabilitation Program

Shared Equity @ CHT

100% MI or belowHomebuyer EdPrime mortgage

Buyer InitiatedNew ConstructionResales

SharedShared--Equity @ CHTEquity @ CHT

20% CHT grant20% CHT grantGround lease/covenantGround lease/covenant

100% Equity100% EquityCapital improvementCapital improvement

25% market25% market

Program Evaluation 2006Program Evaluation 2006

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

Median Price of CHT Resales

“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%.”

Net Equity Gains 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

What Kind of Housing Was Secured by CHT Homeowners After Selling a CHT Home?

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?

End Q4 2009: Percentage of Mortgages Seriously Delinquent & In Foreclosure Process

National Foreclosure RateDecember 2008

2.97%National CLT Foreclosure Rate

December 20080.5%

CHT Foreclosure RateDecember 2008

0.2%

Enhancing Residential Security

25-year total0.1%

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%

Financial Sustainability

Subsidy is retained and recycledSubsidy grows with value of

property357 Households servedAverage investment per HH:

$6,085Cost one fifth of Conventional

program

ChamplainChamplain Housing Housing TrustTrust

UN World Habitat AwardJuly 2008

CLT Resource Center Burlington Associates in Community Development LLC

www.burlingtonassociates.comwww.burlingtonassociates.com

National CLT Network www.cltnetwork.orgwww.cltnetwork.org

Champlain Housing Trustwww.champlainhousingtrust.orgwww.champlainhousingtrust.org