Cht belgium brenda torpy

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