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sponsored CLT. The community land trust isstill a relatively new idea in California, but themodel was familiar to many in Irvine becausethe University of California has long used landleases to preserve faculty housing around itsIrvine campus. The task force's recommenda-tions were unanimously supported by the citycouncil.

The Irvine Community Land Trust (ICLT)was incorporated in March 2006. The citycouncil budgeted $250,000 in start-up fundingfor the land trust. In addition, the city's rede-velopment agency is providing staffing to theorganization while the land trust's first proj-ects are developed.

Irvine is well served by existing nonprofitand for-profit developers of affordable hous-ing, so it is not intended that the ICLT willserve as a developer. Instead, the land trustwill focus on long-term stewardship, findingand screening buyers for homeownershipunits and monitoring those units over time.

Mayor Krom regards the land trust as anintegral part of Irvine's sustainability plan.Given the city's history of creating high-quality, affordable housing that is integratedinto the community, Krom is excited about theopportunities the Irvine Community LandTrust presents. "Irvine has a once-in-a-life-time opportunity to significantly expand af-fordable housing to meet the needs of a broad-er spectrum of people-particularly thosewho work in our city but cannot afford hous-ing here," she says. 'The city and the land trustboard will work with our private and nonprof-it developers to effectively leverage our re-sources, tripling our inventory of affordablehousing over the next 15-20 years and estab-

lishing permanent affordability."

of affordable housing in Irvine, Calif.An artist'srendering

www.nhLorg

Chicago, IllinoisThe City of Chicago has a longstanding com-mitment to creating affordable housing for itsresidents. In 2005, for example, the city pro-vided or leveraged $67,370,461 in land andpublic and private resources to create 1,042for-sale homes, the majority of which were af-fordable to households earning 100 percent orless of Chicago median household income. Asin many municipalities, the city offered "softsecond" mortgages to help qualified home-buyer households purchase a home. In ex-change, homebuyers agreed to repay theseloans whenever they sold their home. Whilethe principal balance was returned to the cityfor re-use, the affordable unit was lost and,because of rapid appreciation and increasingdevelopment costs, recaptured funds wereinsufficient to cover the cost of a new afford-able unit.

Alarmed by the loss of housing made af-fordable through city investment-at a timewhen the amount of subsidy needed to makehousing affordable was increasing and publicaffordable-housing funding was diminishingat all levels of government-the city began tofocus on permanent housing affordability. Thecity began to work with Burlington Associatesin Community Development and community

constituents to detennine how the city mightbest support community land-trust develop-ment in Chicago's neighborhoods as a way tomaintain long-tenD affordability.

Through this process, the Chicago Com-munity Land Trust (CCLT) was created in2006 to preserve the long-tenD affordability ofhousing units developed by nonprofit and for-profit developers with the financial support ofvarious city programs. The CCLT will preservethe affordability of single-family homes thatare located on leased land, using a groundlease similar to those in use by other CLTsacross the country, as well as the affordabilityof condominium units, using 99-year deedcovenants nearly identical in content and for-mat to the CLT's ground lease.

The city detennined that the Chicago CLTwould be citywide, in order to more easilystandardize many of the processes associatedwith resale-restricted housing. "We were ableto work with the county on a standard meansfor assessing property taxes based on thehome's affordable price. Being citywide alsoensures that the homes are spread out amongthe city's neighborhoods," stated Commis-sioner John G. Markowski of the Chicago De-partment of Housing (DOH).

The CCLT is incorporated as a private, non-

SHELTERFORCE 13

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Local Success, Regional OutcomesAn unexpected win from the campaign camein the fonn of new relationships built with for-profit developers, who at the outset were hos-tile to the Inc1usionary Housing Initiative. "Wewere out there running into them at every citycouncil meeting and we said, 'Maybe we oughtto get in a room together to see if we can findsome common ground,' " says Spaulding. A

series of conversations transpired betweenNPH and the Home Builders Association ofNorthern California, which culminated in agroundbreaking, jointly released policy state-ment and set of recommendations reflectingtheir mutual support of key inc1usionary-hous-

ing principles.The real success of the Inc1usionary Hous-

ing Initiative has been the increased dialogueand the change in the political field toward af-fordable housing in the Bay Area. Will this bea sufficient effort to end NIMBY opposition to

~

CITY HALLContinuedfrompage 14

The growth of high-profile, municipallysponsored CLTs that will quickly have hun-dreds of permanently affordable housing unitsin their portfolios will serve to enhance themodel's credibility and to expand the commit-ment to permanent housing affordability. Thenew phenomenon of larger, well-capitalizedcommunity land trusts may, in rather shortorder, double or triple the number of perma-nently affordable CLT homes nationwide,helping to bring the community-land-trust ap-proach into the mainstream. Furthermore,CLTs with a sufficient number of homesshould be able to generate enough revenue in-ternally to support their organizational operat-ing budgets-leading to the financial sustain-ability of these individual CLTs and astrengthening of the CLT movement.

Municipal engagement in the creation andsponsorship of community land trusts repre-sents a significant rethinking of the role of 10-cal govemment in meeting the need for afford-able homeownership. At a time when the gapbetween what housing costs and what manyworking families can afford to pay is increas-

www.nhi.org

~

Evelyn Stivers was formerly the program co-ordinator for the Non-Profit Housing Associ-ation of Northern California.

ing and there is spiraling demand for limitedpublic resources, local governments are in-creasingly recognizing the critical importanceof preserving housing affordability createdthrough the investment of public funds.

While many jurisdictions work closely withnonprofit housing developers to build and man-age rental housing, most local governments stillmanage their homeownership programs in-house. Long-term affordability in homeown-ership programs, however, creates a new set oflong-term management and administration re-sponsibilities for which many jurisdictions aresimply not prepared. As a result, we are likelyto see more municipalities form creative part-nerships with community land trusts to pre-serve the affordability of homeowners hip unitsover the long term and ensure the lasting bene-fit of public investment. .

Rick Jacobus and Michael Brown are partners in

Burlington Associates in Community Develop-

ment, UC, a national consulting cooperative

that specializes in community land trusts and

other permanently affordable homeownership

programs. Burlington Associates has been work-

ing with Chicago, Irvine and other municipali-

ties on the development of new land trusts.

(www.burlingtonassociates .com).

SHELTERFORCE 41