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BRING WORKERS HOME National Association of Realtors and National Housing Conference Boston MA July 28 2011 Regional Forum on Workforce Housing

Brenda Torpy BWH Boston 2011

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Page 1: Brenda Torpy BWH Boston 2011

BRING WORKERS HOME

National Association of Realtorsand

National Housing ConferenceBoston MA

July 28 2011

Regional Forum on Workforce Housing

Page 2: Brenda Torpy BWH Boston 2011

Shared Equity HomeownershipCommunity Land Trust Model

WORKFORCE HOUSING IN ACTION

Page 3: Brenda Torpy BWH Boston 2011
Page 4: Brenda Torpy BWH Boston 2011

Community Land TrustMembership OrganizationElected BoardResidents elect their own seats

Page 5: Brenda Torpy BWH Boston 2011

2010 Community Land Trusts in the USA

Page 6: Brenda Torpy BWH Boston 2011

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

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

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High Cost Market

Page 9: Brenda Torpy BWH Boston 2011

Smart growth:Smart growth:Mixed useMixed use

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Multi-family Housing Cooperatives

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

Page 12: Brenda Torpy BWH Boston 2011

Shared Equity Homeownership

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500 homes in shared equity homeownership portfolio

2 Home-ownership centers

3-County Home rehabilitation Program

Page 14: Brenda Torpy BWH Boston 2011

Shared Equity @ CHT

100% MI or belowHomebuyer EdPrime mortgage

Buyer InitiatedNew ConstructionResales

Page 15: Brenda Torpy BWH Boston 2011

SharedShared--Equity @ CHTEquity @ CHT

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

100% Equity100% EquityCapital improvementCapital improvement

25% market25% market

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Program Evaluation 2006Program Evaluation 2006

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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

Page 18: Brenda Torpy BWH Boston 2011

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%.”

Page 19: Brenda Torpy BWH Boston 2011

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

Page 20: Brenda Torpy BWH Boston 2011

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

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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?

Page 22: Brenda Torpy BWH Boston 2011

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

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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%

Page 24: Brenda Torpy BWH Boston 2011

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%

Page 25: Brenda Torpy BWH Boston 2011

Financial Sustainability

Subsidy is retained and recycledSubsidy grows with value of

property357 Households servedAverage investment per HH:

$6,085Cost one fifth of Conventional

program

Page 26: Brenda Torpy BWH Boston 2011

ChamplainChamplain Housing Housing TrustTrust

UN World Habitat AwardJuly 2008

Page 27: Brenda Torpy BWH Boston 2011

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

Page 28: Brenda Torpy BWH Boston 2011