MinnesotaCommunity Land Trusts

2006 Homes for All Convention

Land Trust Characteristics

There are 5 basic characteristics of

Community Land Trusts:

#1 Nonprofit, Tax-exempt, Community-based

Corporations

• Independent, non-profit organizations

• Governed by elected board from service area

#2 Dual Ownership and Leased Land

• Permanent ownership of land by CLT

• Ownership of homes by eligible buyers

• Homeowners enter into a 99-year, renewable lease for the land

• Balance of lessees and land trust interests– Security, privacy, legacy, equity, use control– Appropriate use, structural integrity, long-term

affordability

#3 Permanent Affordability and Responsibility

• Resale value formula– Fair return on owners’ investment– Preserves affordability for future buyers

• CLT retains responsible interest in homes for perpetuity and can:– Cure defaults– Exercise option to repurchase

– Force repairs if necessary

#4 Local Control and Governance

• Balance of community and leaseholder interest on Board of Directors

– 1/3 leaseholder representatives– 1/3 general community representatives– 1/3 public representatives

• All Directors are elected from CLT’s membership

# 5 Flexibility

Tailor activities to community needs

– Can develop various types of affordable housing• Single-multi family housing, condos, co-ops, mobile home parks

– Can fill different housing roles in the community• Contractor/buyer, developer, homebuyer education, buyer-initiated

purchase programs, land-holder, advocacy and community organizing

– Can develop various facilities for neighborhood • Businesses, nonprofit organizations, social service agencies,

community gardens, pocket-parks

CLTs in Minnesota

Several community land trusts operating in various parts of the state recently formed a coalition

Mission Statement of the Minnesota CLT Coalition:

To promote a common agenda, including policies and resources that benefit the work of community land trusts.

To provide a forum for practitioners to work and learn together.

To promote permanently affordable housing using the community land trust model.

MINNESOTA CLT COALITION

Northern CLT

First Homes

Cannon River CLT

Two Rivers CLT

City of Lakes CLT

Rondo CLT

WHAHLTChaska CLT

Central MN CLT

Greater Frogtown CDC

2006

0

50

100

150

200

250

300

350

400

CLT Units

Complete Units 1999

Complete Units 2002

Complete Units 2004

Complete Units January2006

• As of January 2006, the MN CLT Coalition had over 350 CLT homes

• 350 units of housing, at an average value of $150,000 per unit for a total of over $52 million in leveraged funding

• As of October 2006, there were 438 MN CLT homes. MN CLTs anticipate there will be close to 650 CLT homes by the end of 2007.

Differences Among Minnesota CLTs

CLTs operate in different areas and economies of the state.

CLTs have the support of a wide range of political constituencies in the state because the CLT model is a sensible housing solution from both social and economic perspectives.

CLTs reflect the goals and needs of each community.

CLTs have a wide range of activity dependent upon community needs, including: new construction (in-fill and sub-division), rehab, house moving, financing, land holder, buyer-initiated programs.

Have formed to respond to a specific community need.

Most are very new, with the exception of NCLT and Rondo.

Use CLT model to preserve resources to keep housing permanently affordable.

Commonalties of Minnesota CLTs

Policy Initiative Opportunities• Property tax fairness• Other permanent affordability policy change

opportunities– Below rate mortgage financing for CLT buyers– Special pools of funding for CLT projects/buyers– Capacity funding for new & existing CLTs– Changes to MN condo law– Lower interest construction financing funds– Use of State Gen. Obligation Bonds w/o municipal

requirement

Challenges facing MN CLTs

• Limited housing funds at every level• It’s expensive – important to share

benefits and ROI to community• Alignment of stakeholder priorities• CLTs not always at the table• General public awareness

WebsitesCentral MN CLT: www.cmhp.net

Chaska CLT: www.chaskalandtrust.com

City of Lakes CLT: www.clclt.org

First Homes: www.firsthomes.org

Greater Frogtown CDC: www.greaterfrogtowncdc.org

Northern CLT: www.landtrustduluth.org

Rondo CLT: www.rondoclt.org

Two Rivers CLT: www.tworiversclt.com

WHAHLT: www.homeswithinreach.org