Community Land Trusts on rise

Community Land Trusts have grown steadily and spread all over the country, as more nonprofits and local governments have embraced the concept as a way to provide permanently affordable housing, according to a new survey by the Lincoln Institute.

Key findings of the survey, now available in this working paper , include:
• CLTs largely serve very low (less than 50% area median income), low (50-80% area median income) and some moderate (80-120% area median income) income households.
• While most (95 percent) of the responding organizations have units for homeownership, 45 percent reported that they also have rental units in their housing portfolio. The majority of organizations (80 percent) have less than 100 units including those owned and rented.
• Of the 6,495 homeownership and rental units reported, only 3 percent of ownership units and 7 percent of rental units were vacant.
• The majority (67 percent) of residential buildings are single family attached or detached houses.
• New construction is by far the most common housing development activity, although responding organizations also reported acquiring and rehabilitating existing homes.
Almost all of the respondents reported a 99-year ground lease, although some ground lease durations are for as few as 20. Nearly 60% of responding organizations reported that they had resales.

Property Tax Relief for

Community Land Trusts

Property Tax Relief for Community Land Trusts

In HB 1, passed June 14^th, (special session 2007 B), the Florida Legislature adopted property tax relief for the community land trust (nonprofit owner of the land) and direction to property appraisers on the valuation of the resale restricted home. But due to a legislative staff error in bill drafting, the effective date for the community land trust language was tied to the proposed constitutional amendment referenced in HB 1, which is no longer in effect. The following, therefore, is the language the House and Senate intended to become effective in 2007, but will need to be adopted again in the 2008 legislative session.

193.017 Assessment of structural improvements on land owned by a community land trust and used to provide affordable housing.--

(1) As used in this section, the term "community land trust" means a nonprofit entity that is qualified as charitable under s. 501(c)(3) of the Internal Revenue Code and has as one of its purposes the acquisition of land to be held in perpetuity for the primary purpose of providing affordable homeownership.

(2) A community land trust may convey structural improvements located on specific parcels of such land which are identified by a legal description contained in and subject to a ground lease having a term of at least 99 years to natural persons or families who meet the extremely-low, very-low, low, and moderate income limits, as specified in s. 420.0004, or the income limits for workforce housing, as defined in s. 420.5095(3). A community land trust shall retain a preemptive option to purchase any structural improvements on the land at a price determined by a formula specified in the ground lease which is designed to ensure that the structural improvements remain affordable.

(3) In arriving at just valuation under s. 193.011, a structural improvement that provides affordable housing on land owned by a community land trust and subject to a 99-year or longer ground lease shall be assessed using the following criteria:

(a) The amount a willing purchaser would pay a willing seller shall be limited to the amount determined by the formula in the ground lease.

(b) If the ground lease and all amendments and supplements thereto, or a memorandum documenting how such lease and amendments or supplements restrict the price at which the improvements may be sold, is recorded in the official public records of the county in which the leased land is located, the recorded lease and any amendments and supplements, or the recorded memorandum, shall be deemed a land use regulation during the term of the lease as amended or supplemented.

Section 196.1978 which addresses exemption from property taxes, extends ad valorem tax exemption to “land that is owned by an exempt entity and that is subject to a 99 year or longer ground lease for the purpose of providing affordable homeownership”.

Workforce Housing is Provided in Northwood Renaissance Community Land Trust

September 28, 2007

Workforce Housing is Provided in Northwood Renaissance Community Land Trust

West Palm Beach, Florida- On September 29, 2007, first-time homebuyers Sampson and Marie Lagearre purchased the sixth Community Land Trust (CLT) home built by Northwood Renaissance. The agency partnered with Palm Beach County and Local Initiatives Support Corporation to provide Sampson and Marie with their needed down payment assistance. Their mortgage was provided by Washington Mutual Bank.

Sampson Lagearre is a machine technician for Palm Beach Newspapers and Marie Lagearre is employed by the Breakers. They have 3 children. The family came to Northwood Renaissance after having difficulty obtaining housing that was affordable and met their family’s needs. They acquired a realtor to assist them in their search but the available homes in their price range either lacked enough space for a family of 5 or required extensive repairs. The Lagearres found the CLT houses to be exactly what they needed: well-built, spacious and, most important, affordable.

Northwood Renaissance’s CLT provides an affordable alternative to renting, placing home ownership within the financial reach of many working families by removing the cost of land from the purchase price of the house. The CLT also expands the reach of all funding for first-time homebuyers by lowering the amount of down payment assistance needed for each buyer, thereby extending the reach of the available purchase assistance. This program is a benefit to the community as well because it conserves our affordable housing and the funds used to create it for future first-time homebuyers.

Northwood Renaissance is in the process of completing additional homes through the Community Land Trust for purchase by first-time homebuyers like the Lagearre family. On Wednesday, October 24^th from 6:00 to 8:00 pm at the office of Northwood Renaissance located at 510 24^th Street, West Palm Beach, FL 33407 there will be a CLT Orientation meeting for first-time homebuyers. For additional information about the Community Land Trust and to reserve your seat at orientation, please call Christina Hewitt, Community Land Trust Manager, at (561) 832-6776, extension 107.

Florida Supplement to ICE Legal Manual

The Affordable Housing Committee of the Florida Bar Real Property & Probate Section developed a Florida supplement to the Legal Manual developed by the Institute for Community Economics. This is a supplement and is intended for use in conjunction with the ICE Legal Manual. It is available to members of the Bar and is free. It is only available through the RPPTL website.

Lawyers interested in accessing the supplement should log into the site www.rpptl.org and go to whats new. The supplement is under misc documents. The link is http://rpptl.org/event_pdf_files/CLT%20RPPTL%20Manual%20Final_1992402876.pdf

Land trust homes go modular

Strategy helps Hannibal Square keep its affordability

Christopher Sherman Sentinel Staff Writer

September 23, 2007

WINTER PARK - Providing affordable housing amid overheated real estate is a challenge in any city, but particularly vexing in one of Central Florida's most desired ZIP codes.

The successful redevelopment of Winter Park's historically black west side has made that problem more acute as property values outpace the incomes of many of its residents.

The Hannibal Square Community Land Trust, established with help from the city in 2004 to support the neighborhood's diversity, has an uphill battle to provide affordable houses. So, it responded with creativity.

Click for Complete Story

Construction to being on Winter Park affordable green homes

Construction to being on Winter Park affordable green homes
(Orlando Business Journal © 09/06/2007) (Registration Required)

Work is expected to begin Sept. 19 on a new affordably-priced, energy-efficient housing development in Winter Park, the Hannibal Square Community Land Trust announced Wednesday.

Land trust votes to operate in public eye

http://www.palmbeachpost.com/localnews/content/local_news/epaper/2007/08/25/s3b_CLT_0825.html

Delray Beach's land trust helping to create affordable housing

http://www.sun-sentinel.com/news/local/palmbeach/sfl-fllandtrust0826pcaug26,0,2924179.story

Property Tax Relief for Community Land Trusts

Property Tax Relief for

Community Land Trusts

Property Tax Relief for Community Land Trusts

In HB 1, passed June 14^th, (special session 2007 B), the Florida Legislature adopted property tax relief for the community land trust (nonprofit owner of the land) and direction to property appraisers on the valuation of the resale restricted home. But due to a legislative staff error in bill drafting, the effective date for the community land trust language was tied to the proposed constitutional amendment referenced in HB 1, which is no longer in effect. The following, therefore, is the language the House and Senate intended to become effective in 2007, but will need to be adopted again in the 2008 legislative session.

The Florida Community Land Trust Institute, a collaboration between 1000 Friends of Florida and the Florida Housing Coalition, is pleased to announce that the Florida Legislature has evidenced substantial support for community land trusts by responding to the ad valorem tax challenge in effectively using the community land trust vehicle.

On June 14^th, 2007, the special session on property tax relief brought with it the passage of what had started out in the general session as HB 1151, filed by Representative Keith Fitzgerald addressing community land trust ad valorem taxes. HB 1 (2007 B) provides statutory direction to property appraisers to use the restriction on the resale price contained in the recorded ground lease when determining the value of the house and it exempts the value of the land owned by the community land trust. The new statute also defines community land trusts- to be a 501 (3)(c) organization and has as one of its purposes the acquisition of land to be held in perpetuity for the primary purpose of providing affordable homeownership.

The statutory change made to section 193.017 Florida Statutes is as follows:

193.017 Assessment of structural improvements on land owned by a community land trust and used to provide affordable housing.--

(1) As used in this section, the term "community land trust" means a nonprofit entity that is qualified as charitable under s. 501(c)(3) of the Internal Revenue Code and has as one of its purposes the acquisition of land to be held in perpetuity for the primary purpose of providing affordable homeownership.

(2) A community land trust may convey structural improvements located on specific parcels of such land which are identified by a legal description contained in and subject to a ground lease having a term of at least 99 years to natural persons or families who meet the extremely-low, very-low, low, and moderate income limits, as specified in s. 420.0004, or the income limits for workforce housing, as defined in s. 420.5095(3). A community land trust shall retain a preemptive option to purchase any structural improvements on the land at a price determined by a formula specified in the ground lease which is designed to ensure that the structural improvements remain affordable.

(3) In arriving at just valuation under s. 193.011, a structural improvement that provides affordable housing on land owned by a community land trust and subject to a 99-year or longer ground lease shall be assessed using the following criteria:

(a) The amount a willing purchaser would pay a willing seller shall be limited to the amount determined by the formula in the ground lease.

(b) If the ground lease and all amendments and supplements thereto, or a memorandum documenting how such lease and amendments or supplements restrict the price at which the improvements may be sold, is recorded in the official public records of the county in which the leased land is located, the recorded lease and any amendments and supplements, or the recorded memorandum, shall be deemed a land use regulation during the term of the lease as amended or supplemented.

Section 196.1978 which addresses exemption from property taxes, extends ad valorem tax exemption to “land that is owned by an exempt entity and that is subject to a 99 year or longer ground lease for the purpose of providing affordable homeownership”.