Gra rant ntmakers rs of Western rn Penns nnsylv ylvania nia - PowerPoint PPT Presentation

Gra rant ntmakers rs of Western rn Penns nnsylv ylvania nia � 9.14.18 9.14.18 �

agend nda � • Lawrenceville Background • CLT 101 • The Lawrenceville CLT Story • CLT Unit Tour • CLT Expansion - 2019 and beyond

Mission Statement Lawrenc nceville ille Background und �

Mission Statement our ur mis issio ion � “To act as a catalyst & conduit for responsible growth and reinvestment in the Lawrenceville community.”

Median Home Sale Prices ’00-’16 $251,521 $244,172 $182,534 $123,500 $115,000 $66,000 $52,500 $35,000 $30,000 $25,750 $27,000 $26,000 Lower Lawrenceville Central Lawrenceville Upper Lawrenceville 2000 2007 2012 2016

Real Estate Market (2017) • High-water mark: $705,000 • Percent of sales over $250,000 has more than doubled from 2012 • LLCs responsible for 31% of residential purchases from 2014-2017

2 nd Deferred Mortgages • 27 2 nd Deferred Mortgages given from 1993-2005 in Lawrenceville • 19 of those properties have transacted at least once after the subsidized sale

2 nd Deferred Mortgages (cont.) • $ 433,000 for 19 properties • Average ownership length of 9 years • Original owner walked away with a $53,000 profit

Lawrenceville CLT Outgrowth of the 10 th Ward Community Plan

Mission Statement CLT T 101 �

COMMUNITY LAND TRUSTS A unique approach to affordable homeownership: Change the structure of traditional home ownership Cultivate long-term relationships with residents, occupants, and users Create PERMANENTLY affordable homeownership

How They Do It: Ground Lease Improvements Land • CLT separates ownership of land from improvements • Local community retains ownership of land • Improvements (the home) are owned by individual(s) • CLT leases land to owner of improvements

Permanently Affordable Homeownership ● CLT homeowners, by signing the ground lease: Agree to share with future homebuyers the affordability that was initially created for them Agree to a resale formula that will be used to determine the price at which they can sell their homes

Resale Formula • The key tool that allows LC to maintain permanent affordability and simultaneously allows homeowners to build equity • Based on the growth of Area Median Income – ~ 1 - 1.5% growth per year over the last 10 years

Resale Formula Example • Buy a house at $130,000 – Put down $1,500 down payment – Reduction in balance of the mortgage – Resale value grows 1.15% annually • In 5 years, resale value is: $137,500 – Equity built = ~$19,000 – sale costs • In 10 years, resale value is $145,500 – Equity built = ~$40,000 – sale costs

Comparison to Conventional Homeownership Key Differences: Restrictions on use and resale value Purchased through a leasehold mortgage rather than fee simple mortgage Key Similarities Responsible for all property taxes Eligible for all income tax benefits of traditional homeownership Fully inheritable

POST-PURCHASE STEWARDSHIP CLT lays out clear expectations - and monitors - and enforces - compliance CLT enters into long-term, mutually accountable relationships with homeowners CLT stands behind - and backstops - its homeowners, to ensure their success.

HOMEOWNER SECURITY Over 90% of CLT homeowners remain in their homes at least five years Historically, the average tenure of CLT homeowners is seven years Over 70% of CLT homeowners, when they sell their CLT homes, purchase an unrestricted, market-rate home

CLT Mortgage Performance Total Mortgage Loans CLT Mortgage Loans 4.58% 4.63% 3.3% 0.52% 0.56% 0.46% 2008 2010 2009 FORECLOSURE PROCEEDINGS

Mission Statement The The Lawrenc nceville ille � CLT T Story ry �

Regional Planning • 2014 – Regional CLT Feasibility Study is funded • 2015 – Regional Study comes back with a two fold recommendation: – CLTs are feasible and NEEDED in the greater Pittsburgh area – Find a project and a place to prove the model

Building the plane as we fly it… • January 2016 – Lawrenceville Corporation and Lawrenceville United seat Lawrenceville CLT Advisory Board • August 2016 – CLT Priority Populations Established • September 2016 – Major decisions in Ground Lease finalized • November 2016 – Application form and process finalized

Building a system for development • Engaged in a rigorous community design process • Developed housing typologies that can be used in future developments • Established a working relationship with Monmade to build the hyper-local economy

Design Guidelines • Produced by Rothschild Doyno Collaborative to document and expedite the design process for future CLT developments • Incorporates partners, community plans, housing typologies, program values, and careful aesthetic choices

CLT Application Process • Submit Intake Form • Meet 1 on 1 with CLT staff • Submit Full Application – Requires pre-qualification letter from lender & proof of income (pay stubs, tax returns, etc) • CLT Advisory Board reviews all full applications and makes selections for home buyers based on established priorities

Data Management • HomeKeeper is an app built on Salesforce by CLTs for CLTs • Integrated system for managing data, producing reports, capturing applicant information, tracking subsidy • LC further customized this system for our own homeowner applications • Will adapt to form regional data hub

Proving the model • Prove Demand ✔ • Prove lending ✔ • Prove legal instruments ✔

Mission Statement Que uestio ions ns? �

Mission Statement CLT T Expans nsio ion �

Real Estate Permanent Financial Development Strategy Instrument UCSUR Fourth Economy Palo Alto Partners Steering Committee Burlington Associates Etna (2) Smith Associates A Lawrenceville (3) Ken Joseph Millvale (2) Polish Hill (2) Community Regional Data Hub Sharpsburg (2) Engagement Electric Baby evolveEA HomeKeeper Carlson & Associates Palo Alto Partners Grounded Solutions UCSUR Ken Joseph Network Burlington Associates

What and When?

Organizational Underpinnings • New 501(c)(3) grown out of the stewardship of the Lawrenceville Corporation, with support from River Towns and others. • 9-15 board members • Tri-Partite structure representing community members, CLT homeowners, experts. • Membership component at maturity

City of Bridges Community Land Trust: � VISION: City of Bridges CLT envisions diverse communities where people thrive, build wealth, establish roots, and foster community ties without risk of displacement. MISSION: City of Bridges CLT builds community ownership that preserves permanent affordability, empowers individuals, and ensures responsible growth and stewardship.

Interim Organizational Picture • LC moves key staff over to new entity in 2019 • CLT hires additional dedicated program staff • LC shares administration (executive direction and operations) during interim phase • LC provides office space for new entity for indefinite period All of this to enable the CLT to hit the ground running!

In Inter erim im Fin Financia cial l Pict icture: re: a three-leg ree-legged ed st stool ool • LC contributes $5 Million +/- in assets including Ice House, existing CLT properties, LC CLT Property Pipeline, Line of Credit, etc. • Anticipated philanthropic contribution for Endowment for long-term stewardship (anticipated Spring 2018) • Third leg of the stool: Runway Financial Support

Why?

Scale Investment Need Demand

Sharpsburg Origin of Movers ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Dot = where new ! ! ! resident moved ! from ! ! ! ! ! ! ! ! 2014-2015 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Year of Move D 2014_15 !

Sharpsburg Origin of Movers ! ! ! ! ! ! ! ! ! ! ! ! ! Dot = where new ! ! ! ! ! resident moved from ! ! ! ! ! 2017 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Year of Move E 2017 !

Average days on market • Indicator of demand for place 2014 2015 2016 2017 (Q3) Sharpsburg 170 64 23 6 Millvale 15 9 3 4 Etna 83 94 5 14 Pittsburgh 84 81 83 71 Metro Area Alternative data showing growing demand in Polish Hill’s market: Median Sales 2015 2016 2017 Price Polish Hill $162,000 $178,000 $229,000

Phase I applicant pool 1 dot = 1 inquiry