E DUCATION Community Home Trust Homes you can afford. Neighborhoods you desire.
T HE C OMMUNITY L AND T RUST IN O RANGE C OUNTY , NC 99-Year Ground Lease
O UR M ODEL We hold 99 year renewable OWNERSHIP the deed ground lease Ownership without separating Cannot sell their home to anyone at any price title Must be their primary residence INVESTORS
W HY DO WE NEED A CLT? M EDIAN $337,000 Chapel Hill H OME P RICES 2016 Community $107,000 Home Trust Average Housing Costs = $895/month
W HY DO WE NEED A CLT? To control the land
H ISTORY OF Began C OMMUNITY implementing H OME T RUST Created by the Chapel Hill’s local inclusionary 250 governments housing policy Homes 1990 2000 2001 2016 2017-2021 Converted to a Rental? Community Land Trust at the request of the local governments
G ROWTH OF Number of Homes A FFORDABLE 300 H OUSING 250 250 I NVENTORY 200 2002 - 2016 150 100 50 19 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
H OW IT W ORKS Purchase Price $125,000 (from developer)
H OW IT W ORKS $128,000
H OW IT W ORKS 65% Area Median Income $46,000/year $3,833/month x 28% = $1,073 max housing costs $110,000 Mortgage
Home Costs H OW IT $8,000 $125,000 W ORKS 3 $8,000 $128,000 Sales Price 2 $10,000 $3,000 $110,000 1
4- Y EARS L ATER
Appraisal-Based (2001-2007) L IMITED 54 Homeowners share a percentage of the actual A PPRECIATION increase (or decrease) in market value 1.5% Appreciation (2007-2012) 73 Homeowners earn 1.5% guaranteed appreciation compounded each year AMI Appreciation (2012-present) Homeowners earn 0%-1% for each year of ownership. It is 122 tied to the median family income published by HUD. 2012 Example: After 4 years of ownership 0%-4% of appreciation can be earned.
E XAMPLE $6,200 = +9.02 % Max = 4% appreciation (4 years @ 1%/year) Appreciation = $4,400 $76,000 $74,000 $110,000 $74,900 $72,000 $70,000 $67,700 $68,000 $68,700 $66,000 $67,400 $64,000 $65,700 $62,000 $60,000 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016
P ROCEEDS Proceeds from Sale FROM SALE Original Purchase Price $128,000 April 2012 – April 2016 Appreciation Earned $4,400 CHT Purchase Price $132,400 Less: Repayment of 1 st Mortgage ($102,086) Less: Repayment of NCHFA 2 nd Mortgage ($10,000) Less: Repayment of CHT 3 rd Mortgage ($8,000) Total Proceeds $12,314
P ROCEEDS Proceeds from Sale FROM SALE Original Purchase Price $128,000 Incomes go April 2012 – April 2016 Appreciation Earned $0 down = $0 CHT Purchase Price $128,000 appreciation Less: Repayment of 1 st Mortgage ($102,086) Less: Repayment of NCHFA 2 nd Mortgage ($10,000) Less: Repayment of CHT 3 rd Mortgage ($8,000) Total Proceeds $7,914
Home Costs H OW IT $128,000 $8,000 W ORKS 3 $8,000 $131,000 Sales Price 2 $10,000 $3,000 $113,000 1
Community Home Trust Robert Dowling Executive Director www.communityhometrust.org rdowling@communityhometrust.org 919-967-1545
CHT Homes by Type C HT H OMES B Y T YPE Single 41 Family Homes 87 Condos 122 Townhomes
N ORTHSIDE I NITIATIVE
H OW WE GET OUR HOMES
Affordable Inclusionary Year 2000 Housing Policy Housing
P ACIFICA , V INEYARD S QUARE & G REENWAY
C LAREMONT & B URCH K OVE
E AST 54 & G REENBRIDGE
Before After H OW IT L ONG -T ERM W ORKS M AINTENANCE
S TEWARDSHIP $209,000 spent on P ROGRAM home repairs since 2008 Begun March 2007 >$1 Million As of January, 2017 S AVED FOR LONG - TERM MAINTENANCE 80% of homes on stewardship
HVAC P ROPERTY M ANAGEMENT S TEWARDSHIP P ROGRAM
P ROPERTY M ANAGEMENT 62 UNITS HOA M ANAGEMENT
• Ground lease restrictions • Ensure affordability at purchase • Stewardship & Property Management • Education
E DUCATION F INANCIAL C OUNSELING Budget Counseling 75-100 counseling Credit Counseling sessions per year Foreclosure Prevention H OMEBUYER E DUCATION 60 homebuyer First Time Homebuyer education participants Section 8 Homeownership Program in Orange County Habitat for Humanity Partnership H OME M AINTENANCE Quarterly maintenance classes New and Existing Homeowners held
305 CLT S IN THE U.S. As of March 2017
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