Andrew CarswellKim SkobbaUniversity of Georgia

IDENTIFYING SOCIAL AND NEIGHBORHOOD OUTCOMES

OF COMMUNITY LAND TRUST HOMEOWNERS

The collapse of the housing market has been particularly destabilizing for lower income families, calling into question U.S. housing policy that has promoted homeownership among low-income households (Mallach, 2011).

Emerging interest in affordable, alternative tenure options that fall between rental and homeownership (Apgar, 2004; Davis, 2006).

Community land trusts (CLT), which use a shared equity homeownership model, offer an alternative option.

BACKGROUND

A homeowner usually receives some type of subsidy, which reduces the purchase price and monthly payments

Upon resale, the homeowner shares the increase in home value with the organization that provided the subsidy (usually a non-profit organization)

For homeowners with low- and moderate-incomes

Also called “resale restricted homeownership:, “permanently affordable homeownership” and “third-sector housing”

SHARED EQUITY HOMEOWNERSHIP

COMMUNITY LAND TRUSTS

A dual ownership model – homeowner owns the home, another entity (usually a non-profit) owns the land

Homeowners receive a portion of the appreciation at resale

Most of the bundle of rights given to conventional homeowners Must be owner-occupied, may need permission or have limitations placed on major improvements

•The CLT owns the land under a home and the owner owns the house and any improvements to the property.

•The homeowner pays a monthly ground lease for the use of the land.

CLT OWNERSHIPMODEL

Ground

Homeowneromeowner

CT

CLTomeowner

The ground lease ties the CLT and the homeowner together and defines the

rights and responsibilities of and relationship between the parties.

Previous research on CLT models:Has focused primarily on their ability to achieve long-

term, permanent aff ordability. The shared-equity provision has led to a research

emphasis on CLT homeowners’ ability to move, rather than the eff ect of CLT ownership on residential stability (Tempkin et al., 2010).

Research focus may be overlooking other benefits of the model, such as outcomes related to residential and school stability, employment and neighborhood stabilization.

BACKGROUND

What are the household and neighborhood outcomes of CLT homeowners in Athens, GA prior to and after moving into CLT owner-occupied housing?

How does CLT homeownership facilitate progress along the housing continuum?

RESEARCH QUESTIONS

The study uses a mixed-method approach, which includes a household survey and in-depth interviews.

The survey, administered in-person to CLT homeowners, gathered data on the following: Housing status prior to CLT ownership Residential satisfaction Children’s school attainment and mobility Income and employment Perceptions of neighborhood safety and housing conditions Housing costs Transportation costs

All homeowners (20) from the Athens Land Trust invited to participate in the study

Completed fi rst phase of research in Athens, GA. Second phase – CLT homeowners in Chapel Hill, NC; Minneapolis/St. Paul, MN

RESEARCH METHOD

14 of 20 CLT homeowners took part in an interview. Number of eligible homeowners smaller than originally anticipated as many are in rent-to-own arrangements with the Athens Land Trust

11 participants were female; 3 were male12 participants were African American; 2 were

CaucasianMedian family size = 2.5 members6 of the 14 households had children6 participants were married, 4 were divorced, the

remaining were single or widowed

SAMPLE CHARACTERISTICS

Half (7) had completed at least some collegeHalf were working full-time, the other half were out of

work or retiredAthens Land Trust sells homes to families earning

below 80% AMI ($46,900 for a family of four)The majority of the households in the study earned

less than $30,000.

SAMPLE CHARACTERISTICS

Most of the homeowners interviewed experienced residential stability prior to purchasing a CLT home

Average number of moves in the previous 5 years = 2.21

5 homeowners had lived in the same rental housing for 10 years or more. One homeowner had lived in the same apartment for 50

years prior to becoming a CLT homeownerYounger homeowners and homeowners with younger

children moved more frequently than older homeowners

Prior to buying their homes: 8 homeowners had lived in private market rental housing, 4 lived in public housing or had a voucher, 1 owned a mobile home on leased land, 1 lived with a parent

FINDINGS: HOUSING BEFORE CLT OWNERSHIP

The majority of CLT homeowners interviewed felt their home was either somewhat aff ordable (4) or very aff ordable (9).

All homeowners felt confident that they would be able to stay in their homes as long as they wanted to.

FINDINGS: PERCEPTION OF CLT AFFORDABILITY AND STABILITY

Participants had lived in Athens, GA prior to purchasing their homes. Many had lived in Athens their whole lives.

All indicated that they felt safe in their neighborhood.The majority (11) felt that their neighborhood off ered

good community activitiesAbout half of the homeowners indicated that they did

not have many friends in the neighborhood.The majority of CLT homeowners (12) indicated that

they were happy with the quality of their neighborhood

The majority indicated that they had convenient access to health care and grocery stores

FINDINGS: NEIGHBORHOODS

The CLT homeowners interviewed who were employed travelled 5 miles or less to work.

11 used a car as their primary form of transportation; 2 used rides from family/friends and 1 relied on public transportation

FINDINGS: TRANSPORTATION

CONCLUSION/QUESTIONS

Contact Information:

Dr. Skobba (kskobba@uga.edu)

Dr. Carswell (carswell@uga.edu)