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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