STARTING A CLT:ORGANIZATIONAL &OPERATIONAL CHOICES

Brussels – July, 2013

Presented by Tony Pickett

PART 1 Quick Overview of the “Classic” CLT

What is a Community Land Trust?

A CLT owns and stewards land for the common good in perpetuity, by providing:

Affordable housing Commercial spaces Community Services Farming or open land

How are CLT organizations structured?

Generally Non-Profit 501(c)3: Community based Membership organization Tri-partite governance Defined service area Sustainable - perpetual responsibility

How are CLT properties structured?

Individual owns the improvements (home) and the leasehold right

Community Land Trust owns the land

Dual Ownership

Ground Lease ties house & land together

How are CLT properties structured?

Dual Ownership

How is perpetual affordability structured?

Lower Price At First Sale

Lower Price at Resale

Lower Price at Every Resale

Resale-Restrictions

Perpetual Affordability = Perpetual Responsibility

1. Long Term Maintenance2. Sustainable Organizations

PART 2 Organization Choices: Classic v. Variations

Variation on a Theme

Organizational Landscape Existing Development Funder Priorities Unfamiliar Model Regional Opportunities

Organizational Choices

1. Sponsorship2. Governance3. Service Area4. Beneficiaries5. Development Strategy6. Development Type

1. The Organization/Sponsor

Grassroots Non-profit

Variations: Government Sponsorship Existing Non-Profit Sponsorship Employer Sponsorship

Grassroots Sponsorship

Create a New Non-Profit Pros:

Community Acceptance/Legitimacy Understanding of the local market No political baggage

Cons: Capacity building Credibility Competition for funding

Government Sponsorship

Operate as a Governmental Program Pros:

Financial support Staff support Legitimacy

Cons: Suspicion of government Political affiliation Top-down development Bureaucracy

Nonprofit Sponsorship

Work with an Existing Non-Profit Pros:

Build on existing capacity Immediate productivity

Cons: Political baggage Accountability to leaseholders Accountability to community Divided loyalties/multiple commitments

Employer Sponsorship

Partner with Local Business Pros:

Immediate capacity and credibility Access to funding from employers

Cons: Accountability to employers Target population (workforce housing)

2. Governance: The “Classic” Tripartite Board

Leaseholders

Public Representatives

Members

The “Classic” Tripartite Board

Variations No General Membership Organizational Members Appointed Seats Why

Bother?

3. Service Area

Neighborhood

City-wide

County-wide

Metropolitan

State-wide

4. Beneficiaries

Who will you serve? Income? Residency? Workforce?

CLT Development Buyer-initiated scattered

site Developer-initiated Municipal projects Partnerships

5. Development Strategies

Single Family Detached Condos Coops Co-housing Rental Mobile Home Parks

6. Development Type

QUESTIONS?