First Homes CLT Bench Marking Study
Why First Homes 2.0? Began as Starter homes for working families. ∆ 80% Area Median Income ∆ Current AMI $61,302 ∆ 80% = $48,962 or $23.54 per hour
Framework for CLT Affordable house based on income Safe and hazard free home Energy efficient
Why Community Land Trust? Community land trust retains affordability into perpetuity. In a community of 80,000 houses, if ¼ are CLT , it yields 20,000 affordable houses into the future.
The Benchmarking Study CLT # of Units CLT price Market Price West Hennepin 113 $124,053 $229,375 First Homes 209 $116,497 $143,665 City of Lakes 172 $103,771 $150,302 One Roof 260 $ 86,650 $118,785 Two Rivers 52 $128,891 $174,543 Carver Co. 24 $128,138 $168,720
What We Learned Majority use open market Real Estate firms Frees up staff Builds relationships and good will in community Charge administrative fees Retain % of grant funds for operations Philanthropic support- public and employers Autopay for lease fees
Manage First Homes Document Internal procedures-criteria Purchase Resale Rehab
Manage First Homes Document External Relationships-criteria Lenders Realtors Appraisers
What We Are Planning Communication plan Increase visibility in the community Create ongoing material for media Increase a sense of belonging with home owners Newsletters Biennial surveys
Financial Sustainability Implement administrative fees (begun) Retain % of grant funds for operations Put lease fees on autopay Fund raiser- raise awareness and visibility
Our Goal Manage First Homes as a socially conscious business providing affordable homes for working families while maintaining a positive bottom line. First Homes offers a unique contribution to housing --the CLT and the Heritage Homes program has created neighborhood stabilization by removing blight and preserving properties in the core area neighborhoods. We feel this remains our future.
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