Community Home Trust Homes you can afford. Neighborhoods you - - PowerPoint PPT Presentation

▶

Feb 22, 2023 326 likes •669 views

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

SLIDE 1

EDUCATION

Community Home Trust

Homes you can afford. Neighborhoods you desire.

SLIDE 2

THE COMMUNITY LAND TRUST

IN ORANGE

COUNTY, NC

99-Year Ground Lease

SLIDE 3

OUR MODEL

We hold the deed

OWNERSHIP

99 year renewable ground lease

Cannot sell their home to anyone at any price Must be their primary residence INVESTORS

Ownership without separating title

SLIDE 4

WHY DO WE

NEED A CLT?

MEDIAN HOME PRICES 2016

Chapel Hill

$337,000

Community Home Trust

$107,000

Average Housing Costs = $895/month

SLIDE 5

WHY DO WE

NEED A CLT?

To control the land

SLIDE 6

1990

Created by the local governments

2000 2001 2016

Converted to a Community Land Trust at the request

f the local

governments Began implementing Chapel Hill’s inclusionary housing policy 250 Homes

HISTORY OF COMMUNITY HOME TRUST

Rental?

2017-2021

SLIDE 7

GROWTH OF AFFORDABLE HOUSING INVENTORY

50 100 150 200 250 300

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Number of Homes

19 250

2002 - 2016

SLIDE 8

HOW IT WORKS

Purchase Price

$125,000

(from developer)

SLIDE 9

HOW IT WORKS

$128,000

SLIDE 10

HOW IT WORKS

65% Area Median Income $46,000/year

$3,833/month x 28% = $1,073 max housing costs

$110,000 Mortgage

SLIDE 11

HOW IT WORKS

Home Costs Sales Price

$8,000 $125,000 $128,000 $3,000 $8,000 $10,000 $110,000 1

2 3

SLIDE 12

4- YEARS LATER

SLIDE 13

LIMITED APPRECIATION

1.5% Appreciation (2007-2012)

Homeowners earn 1.5% guaranteed appreciation compounded each year

73 54 122

AMI Appreciation (2012-present)

Homeowners earn 0%-1% for each year of ownership. It is tied to the median family income published by HUD. Example: After 4 years of ownership 0%-4% of appreciation can be earned.

Appraisal-Based (2001-2007)

Homeowners share a percentage of the actual increase (or decrease) in market value 2012

SLIDE 14

EXAMPLE

$110,000

$68,700 $67,700 $65,700 $67,400 $74,900

$60,000 $62,000 $64,000 $66,000 $68,000 $70,000 $72,000 $74,000 $76,000 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016

$6,200 = +9.02 % Max = 4% appreciation (4 years @ 1%/year)

Appreciation = $4,400

SLIDE 15

PROCEEDS

FROM SALE

Proceeds from Sale

April 2012 – April 2016 Original Purchase Price $128,000 Appreciation Earned $4,400 CHT Purchase Price $132,400 Less: Repayment of 1st Mortgage ($102,086) Less: Repayment of NCHFA 2nd Mortgage ($10,000) Less: Repayment of CHT 3rd Mortgage ($8,000) Total Proceeds $12,314

SLIDE 16

PROCEEDS

FROM SALE

Proceeds from Sale

April 2012 – April 2016 Original Purchase Price $128,000 Appreciation Earned $0 CHT Purchase Price $128,000 Less: Repayment of 1st Mortgage ($102,086) Less: Repayment of NCHFA 2nd Mortgage ($10,000) Less: Repayment of CHT 3rd Mortgage ($8,000) Total Proceeds $7,914

Incomes go down = $0 appreciation

SLIDE 17

HOW IT WORKS

Home Costs Sales Price

$8,000 $128,000 $131,000 $3,000 $8,000 $10,000 $113,000 1

2 3

SLIDE 18

Community Home Trust

Robert Dowling Executive Director

www.communityhometrust.org rdowling@communityhometrust.org 919-967-1545

SLIDE 19

CHT HOMES

BY TYPE

87 122 41

CHT Homes by Type

Single Family Homes Townhomes Condos

SLIDE 20

NORTHSIDE INITIATIVE

SLIDE 21

HOW WE GET

OUR HOMES

SLIDE 22

Year 2000

Affordable Housing Policy Inclusionary Housing

SLIDE 23

PACIFICA, VINEYARD SQUARE & GREENWAY

SLIDE 24

CLAREMONT & BURCH KOVE

SLIDE 25

EAST 54 & GREENBRIDGE

SLIDE 26

HOW IT WORKS LONG-TERM MAINTENANCE

Before After

SLIDE 27

STEWARDSHIP PROGRAM Begun March 2007

>$1 Million

SAVED FOR LONG-TERM MAINTENANCE

80% of homes

n stewardship

$209,000 spent on

home repairs since 2008

As of January, 2017

SLIDE 28

PROPERTY MANAGEMENT

STEWARDSHIP PROGRAM

HVAC

SLIDE 29

PROPERTY MANAGEMENT HOA MANAGEMENT

62UNITS

SLIDE 30

Ground lease restrictions
Ensure affordability at purchase
Stewardship & Property Management
Education

SLIDE 31

EDUCATION FINANCIAL COUNSELING HOMEBUYER EDUCATION HOME MAINTENANCE

Budget Counseling Credit Counseling Foreclosure Prevention First Time Homebuyer Section 8 Homeownership Program Habitat for Humanity Partnership New and Existing Homeowners

75-100 counseling

sessions per year

60 homebuyer

education participants in Orange County

Quarterly

maintenance classes held

SLIDE 32

305 CLTS

IN THE U.S.

As of March 2017