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

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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

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SLIDE 1

Gra rant ntmakers rs

  • f Western

rn Penns nnsylv ylvania nia 9.14.18 9.14.18

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SLIDE 2
  • Lawrenceville Background
  • CLT 101
  • The Lawrenceville CLT Story
  • CLT Unit Tour
  • CLT Expansion - 2019 and beyond

agend nda

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SLIDE 3

Mission Statement

Lawrenc nceville ille Background und

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“To act as a catalyst & conduit for responsible growth and reinvestment in the Lawrenceville community.”

Mission Statement

  • ur

ur mis issio ion

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$25,750 $27,000 $26,000 $35,000 $66,000 $30,000 $123,500 $115,000 $52,500 $251,521 $244,172 $182,534 Lower Lawrenceville Central Lawrenceville Upper Lawrenceville 2000 2007 2012 2016

Median Home Sale Prices ’00-’16

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SLIDE 6

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

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SLIDE 7
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SLIDE 8

2nd Deferred Mortgages

  • 27 2nd Deferred Mortgages given from

1993-2005 in Lawrenceville

  • 19 of those properties have transacted at

least once after the subsidized sale

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2nd Deferred Mortgages (cont.)

  • $433,000 for 19 properties
  • Average ownership length of 9 years
  • Original owner walked away with a $53,000

profit

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SLIDE 10

Lawrenceville CLT

Outgrowth of the 10th Ward Community Plan

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SLIDE 11
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SLIDE 12

Mission Statement

CLT T 101

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COMMUNITY LAND TRUSTS

A unique approach to affordable

homeownership:

Change the structure of traditional home

  • wnership

Cultivate long-term relationships with

residents, occupants, and users

Create PERMANENTLY affordable

homeownership

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SLIDE 14

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

How They Do It: Ground Lease

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SLIDE 15

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

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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

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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

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SLIDE 18

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

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SLIDE 19

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.

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SLIDE 20

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

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SLIDE 21

CLT Mortgage Performance

Total Mortgage Loans

CLT Mortgage Loans

2008 2009 2010

FORECLOSURE PROCEEDINGS 3.3% 4.58% 4.63% 0.52% 0.56% 0.46%

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Mission Statement

The The Lawrenc nceville ille CLT T Story ry

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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

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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

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SLIDE 25

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

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SLIDE 26

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

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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

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SLIDE 28
  • 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

Data Management

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Proving the model

  • Prove Demand ✔
  • Prove lending ✔
  • Prove legal instruments ✔
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Mission Statement

Que uestio ions ns?

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Mission Statement

CLT T Expans nsio ion

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A

Steering Committee Real Estate Development Strategy Regional Data Hub Permanent Financial Instrument Community Engagement

Etna (2) Lawrenceville (3) Millvale (2) Polish Hill (2) Sharpsburg (2) evolveEA Palo Alto Partners Ken Joseph Burlington Associates

UCSUR Palo Alto Partners Burlington Associates Smith Associates Ken Joseph Fourth Economy Carlson & Associates UCSUR Electric Baby HomeKeeper Grounded Solutions Network

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What and When?

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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
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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

  • wnership that preserves permanent affordability,

empowers individuals, and ensures responsible growth and stewardship.

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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
  • perations) 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!

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In Inter erim im Fin Financia cial l Pict icture: re: a three-leg ree-legged ed st stool

  • ol
  • 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

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Why?

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Scale

Investment

Need Demand

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SLIDE 41 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

Year of Move

!

D 2014_15

! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

Sharpsburg Origin of Movers

Dot = where new resident moved from

2014-2015

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SLIDE 42 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

Year of Move

!

E 2017

! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

Sharpsburg Origin of Movers

Dot = where new resident moved from

2017

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SLIDE 43

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 Metro Area 84 81 83 71

Median Sales Price 2015 2016 2017 Polish Hill $162,000 $178,000 $229,000 Alternative data showing growing demand in Polish Hill’s market:

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Phase I applicant pool

1 dot = 1 inquiry

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  • Individual applications received from 96

zip codes

  • Teachers, municipal employees,

healthcare professionals

  • 1/3 of applicants employed by UPMC

system

  • For context, 15% of region is

employed by UPMC system

  • Mostly first-time homebuyers
  • High percentage of single, older people

Applicant Snapshot

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How?

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Scale

Investment

Need Demand

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100 Units in 5 Years

  • CLT Developed Units

– Current and Potential Pipeline: 64 total, 33 LC – Sourced through various avenues

  • Land Bank & Property Reserve
  • Portfolio Owners
  • Long Time Owners
  • Buyer Initiated
  • Rental & Homeownership Incubation
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Where and Who?

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Invitation to “do” CLT and values alignment, plus: Need

  • Community plan that calls for permanent affordability
  • Existing community uses to be preserved

Demand

  • Real estate transaction data, locational access to opportunity
  • Existing market study

Scale

  • Available properties

Investment

  • Interest from funders, access to public sources
  • Other assets to contribute

Capacity

  • Existing neighborhood organization, track record of development
  • Community process in place

On-Boarding

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SLIDE 52

Map 1

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Map 2

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Map 3

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Fully-Fledged Picture

  • 6-9 FTE staff working for the CLT
  • rganization
  • CLT assets in no less than 5 municipalities/

neighborhoods

  • LC provides office space for new entity for

indefinite period

All of this to enable the CLT to hit the ground running!

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Mission Statement

Que uestio ions ns?

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Mission Statement

Evalua luatio ion

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Mission Statement

Tha Thank nks!