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COMMUNITY LAND TRUST OF PALM BEACH COUNTY, INC.
ADAPTING WITH A NEW BUSINESS MODEL
HOW NON-PROFITS CAN SURVIVE THE
RECESSION
Spearheaded by Palm Beach County in 2005 as one of the tools in their “affordable housing toolbox”
Incorporated as a non-profit organization in 2006
A devoted all volunteer Board of Directors ran the organization until the funding agreement with PBC was ironed out in December 2007
First staff person hired in January 2008
Things can change dramatically over a 3 yr period…
COMMUNITY LAND TRUST OF PALM BEACH COUNTY, INC (CLT of PBC)
PALM BEACH COUNTY HOUSING MARKET
2005 2008$421,500 – Median price of SF unit*
$334,300 – Median price of SF unit*
12,408 – Number of building permits issued*
571 – Number of permits issued in 1st quarter*
The 2007 Palm Beach County Workforce Housing Market Update found that the inventory of unsold single family homes tripled from 2006-07.
The CLT Model Being Employed in PBC1. Acquire Land – Preferably through a
donation2. Build the unit3. Resell the unit only maintaining ownership
of the underlying landIt was anticipated from early on that this would be the business model for the CLT of PBC. However, the market in 2008 no longer supported this approach….
Shift to Acquisition of Existing UnitsAcquisition was already a strategy in the
Strategic PlanSubmitted an unsolicited request to the
County for CDBG funds to acquire and resell three existing vacant homes under CLT model
Submitted grant application for SHIP funds to acquire and resell two existing vacant homes
Lesson learned – do not be afraid to ask. SHIP did not have a specific strategy for this activity. We applied for funding under the RFP for new construction.
New ModelOpportunities:• Generates program income creating a
capital fund for the organization.• Units were acquired for less than the cost
to build them.• Helps stabilize communities.• Fits well with NSP Acquisition and Rehab.
Challenges:• Does not generate operating revenue .• Requires scattered site property
maintenance.• One of the houses declined in value before
it was resold.
Other ways we have adaptedWent out with a RFP to partner with a for-
profit to develop our 7.29 acre piece of property.
Have now partnered with another non-profit in submitting a HOME application with the State to develop 34 rental units in Phase I of our development “Davis Landings.”
Key Ingredients in Our SuccessCritical support of Palm Beach County from
very early on.Expanding our products, investments, and
activities while still maintaining a lean organization.
Strong Board participation provided us the ability to expand activities while maintaining a small staff.
Built and maintained collaborative partnerships
Questions??
Community Land Trust of Palm Beach County, Inc.
100 Australian Avenue, Suite 410West Palm Beach, Florida 33406Ph: 561.233.3682Fax: 561.656.7551http://cltofpbc.org
Cindee LaCourse-Blum, Executive [email protected]