Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
The Best of Three Worlds

The Best of Three Worlds

Ratings: (0)|Views: 813|Likes:
Published by P2P Foundation
Mutual Home Ownership combines housing affordability with equity and fairness
Mutual Home Ownership combines housing affordability with equity and fairness

More info:

Categories:Types, Research
Published by: P2P Foundation on Jun 17, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

06/17/2013

pdf

text

original

 
The Best of Three Worlds
By Michael Lewis and Pat Conaty
Mutual Home Ownership combines housing affordability with equity and fairness
 $ 
VWKLVDUWLFOHKLWVWKHDLUZDYHVDEUDQGQHZKRXVLQJ PRGHOLVVHHLQJWKHOLJKWRIGD\'HYLVHGWRKHOSVFDOHXSDIIRUGDEOHKRXVLQJVROXWLRQVLQWKHFLWLHVRI(QJODQGDQG :DOHVWKHILUVW0XWXDO+RPH2ZQHUVKLS6RFLHW\0+26ZLOOFHOHEUDWHDVRGWXUQLQJLQ/HHGVLQ'HFHPEHU7KH\FDOOWKHGHYHORSPHQW´/,/$&µORZ,PSDFW/LYLQJ$IIRUGDEOH&RPPXQLW\DQDSWGHVFULSWLRQIRUDQXUEDQHFRYLOODJHWKDWSURPLVHVFRQYLYLDOPXOWLJHQHUDWLRQDOOLYLQJLQKLJKHIILFLHQF\ORZFDUERQFRRSHUDWLYHKRXVLQJ$QGDIIRUGDEOHWRRLWVXQLTXHVWUXFWXUHDFFRPPRGDWHVDPL[RILQFRPHJURXSV²QRWDQHDV\ WKLQJLQFLWLHVZKHUHODQGIOLSSLQJGULYHVSURSHUW\YDOXHVXSDQGDIIRUGDELOLW\GRZQ
7DNH0LFKDHOKHUHIRULQVWDQFH:HUHKHWRWU\DQGEX\WKHOLWWOHVTXDUHIRRWVWRUH\DSDUWPHQWZKHUHKHOLYHVLQ9DQFRXYHU%&KH ZRXOGKDYHWRFRPHXSZLWKDWOHDVW)LYH\HDUVDJRLWZDV'HUHNDEXGG\RIKLVZKROLYHVRQWKHVWUHHWODXJKV´,FKRVHPXVLFRYHUVKHOWHU\HDUVDJR,FRXOGQRWDIIRUGWROLYHLQDQDSDUWPHQWDQGGRZKDW,ORYHµ0XWXDOKRPHRZQHUVKLSLVDIDVFLQDWLQJVWUDWDJHPGHVLJQHGWROHYHUDJHWKHDGYDQWDJHVRIWKUHHYHU\GLIIHUHQWPRGHOVDOORIZKLFKKDYHEHHQDURXQGIRUWKHODVW\HDUVFRPPXQLW\ODQGWUXVWV8QLWHG6WDWHVVKDUHGHTXLW\WHQDQWFRRSHUDWLYHV6ZHGHQDQGWKHYLVLRQRIWKH/HWFKZRUWK*DUGHQ&LW\(QJODQG7KHUHVXOWFRXOGZHOOEHFRPHD JHQHUDWLYHVWFHQWXU\PRGHORIIDLUDQGVXVWDLQDEOHKRXVLQJ&/7VHQVXUHWKDWDSURSHUW\GRHVQRWGRXEOHLQSULFHHYHU\ILYH \HDUV,QWKH86ZKHUHWKHPRGHOKDVDGYDQFHGWKHIXUWKHVW&/7VDUHDWWUDFWLQJPRUHDQGPRUHDWWHQWLRQIRUWKUHHUHDVRQVWKH\SUHVHUYHDIIRUGDELOLW\LQSHUSHWXLW\WKH\SUHVHUYHWD[SD\HULQYHVWPHQWVLQORZ LQFRPHKRXVLQJDQGWKH\KDYHVXSHUORZLQFLGHQFHVRIIRUHFORVXUH :K\",WLVVLPSOHUHDOO\)LUVWWKHRZQHUVKLSDQGFRQWURORIODQGLVVHSDUDWHGIURPWKHRZQHUVKLSDQGFRQWURORIWKHEXLOGLQJVRQWKDWODQG7KHODQGLVKHOGRXWVLGHRIWKHPDUNHWLQDWUXVWWKDWLVOHJDOO\ERXQGWRSUHVHUYHWKHODQGIRUDIIRUGDEOHKRXVLQJ6HFRQGZKHQWKH\EX\DKRXVHRQ&/7ODQGKRPHRZQHUVDJUHHWRDUHVDOHIRUPXODZKLFKDOORZVWKHPWRPDNHDPRGHVWJDLQLQHTXLW\EXWQHYHUDZLQGIDOOSURILW
Community Land Trusts (CLTs)
 
2011 dec 15
1
 
2011 dec 15
2
,WLVDSRZHUIXOPRGHO,Q%XUOLQJWRQ 9HUPRQWWKH&KDPSODLQ+RXVLQJ7UXVWKDVDERXWKRXVLQJXQLWVZKLFKDUHQRZSHUPDQHQWO\ DIIRUGDEOH7KDWPDNHVDELJGLIIHUHQFHLQD WRZQZLWKDSRSXODWLRQRIRQO\6HH´$IIRUGDELOLW\/RFNHG,Q&RPPXQLW\ODQGWUXVWV²JRRGQHZVIRUKRXVHKROGVFRPPXQLWLHVWD[SD\HUVµ 1RYHPEHU7HQDQWRZQHUVKLSFRRSVGLIIHULQVHYHUDOZD\VIURPWKHKRXVLQJFRRSHUDWLYHVFRPPRQLQ&DQDGD8QGHUWKLV6ZHGLVKPRGHOWKHFRRSRZQVWKHODQGDQGWKHEXLOGLQJDQGJUDQWVRFFXSDQF\ULJKWVWRWKHFRRS·VDSDUWPHQWVWRWKHPHPEHUWHQDQWVXQGHUWKHWHUPVRIDPHPEHU·VDJUHHPHQW7KHPHPEHUVDUHDOVRYRWLQJ VKDUHKROGHURZQHUVRIWKHFRRS0HPEHUVDOVRKDYHDOLPLWHGHTXLW\VWDNHW\SLFDOO\LQWKH YDOXHRIWKHDSDUWPHQWWKH\RFFXS\7KH\EX\WKLVVWDNHZKHQWKH\EHFRPHDPHPEHUDQGVHOO ZKHQWKH\OHDYH
L
Sweden’s TenantOwnership Co-operatives
,WLVELJ²WHQDQWRZQHUVKLSFRRSHUDWLYHVFRPSULVHRI6ZHGHQ·VQDWLRQDOKRXVLQJ VWRFNLQIDFW2QHRIWKHPDLQUHDVRQVLVWKDWQDWLRQDOO\WKH\KDYHFUHDWHGWZRNH\FRRSHUDWLYHGHYHORSPHQWRUJDQL]DWLRQV²WKH´PRWKHUµRUVHFRQGDU\KRXVLQJFRRSV+6%5LNVI|UEXQGDQG5LNVE\JJHQ%RWKKHOSQHZFRRSVWRJHWJRLQJE\ PRELOL]LQJVDYLQJVDQGE\KHOSLQJWRRUJDQL]HRWKHUORZFRVWILQDQFLQJIURPDGGLWLRQDOEDQN ORDQV7KH´GDXJKWHUVµDUHWKHSULPDU\ WHQDQWRZQHUVKLSFRRSV7KH\DUHORFDOO\EDVHGPDQDJHWKHLURZQDIIDLUVDQGJHWKHOSIURPWKH´PRWKHUVµDVQHHGHGIRUIXUWKHUGHYHORSPHQW)LQDQFHLVDPL[RIGRZQSD\PHQWVRIWHQSHUVRQDOVDYLQJVDQGDSHUVRQDOORDQ²W\SLFDOO\ RIFRVWRQWKHSDUWRIWKHWHQDQWVDQGEDQNILQDQFLQJDFRUSRUDWHORDQWRWKHFRRSHUDWLYH:KHQPHPEHUVOHDYHWKHFRRSWKH\ VHOOWKHLUHTXLW\VKDUHWRQHZPHPEHUV,QWKLV ZD\SHRSOHFDQHDUQDOLPLWHGHTXLW\VWDNHLQWKH YDOXHRIWKHLUKRPH+6%DQG5LNVE\JJHQDVVLVWWKHGDXJKWHUFRRSVLQPDQDJLQJWKHVDOHRIWKHRFFXSDQF\ULJKWVDQGWKHHTXLW\VWDNHZKHQD PHPEHUGHSDUWV,QVRPHXUEDQDUHDVZLWKKLJKODQGYDOXHVOLNH6WRFNKROPDQG*RWKHQEXUJKRXVLQJSULFHLQIODWLRQKDVEHFRPHDSUREOHPDWOHDVWIRUORZHULQFRPHSHRSOH7KH\FDQQRORQJHUDIIRUGWRMRLQDWHQDQWRZQHUVKLSFRRS5HVWULFWLRQVRQWKHVDOHSULFHRIPHPEHUV·OLPLWHGHTXLW\ VWDNHVZHUHUHPRYHGE\JRYHUQPHQWGHUHJXODWLRQRIWKHKRXVLQJFRRSVHFWRULQWKHV7KLVDOORZHGWKHYDOXHRIRFFXSDQF\ULJKWVWRIORDWLQDIUHHPDUNHWIRUPHPEHU·VHTXLW\ VWDNHV:LWKRXWDUHVDOHIRUPXODVXFKDVWKH&/7PRGHOSURYLGHVWKH6ZHGLVKPRGHOLQVRPHDUHDVKDVPRYHGXSPDUNHWWREHFRPHWKHSUHVHUYHRISHRSOHZLWKKLJKHULQFRPHV7KLVWKLUGLQVSLUDWLRQWRWKH0+26GHVLJQHUVGDWHVEDFNWRZKHQ(EHQH]HU+RZDUGHVWDEOLVKHGD´FRRSHUDWLYHODQGVRFLHW\µ)LUVW*DUGHQ&LW\/WGWRUDLVHLQLWLDOVKDUHFDSLWDORI  +LVYLVLRQZDVWRXVHWKHPRQH\WREXLOGQHZFLWLHVZKHUHWKHODQGZDVRZQHGFROOHFWLYHO\/HWFKZRUWK+HUWIRUGVKLUHNPQRUWKRI/RQGRQZDVODXQFKHGLQ,Q \HDUVLWVSRSXODWLRQJUHZWRDQGLWWKULYHGIRUDVKRUWSHULRGDIWHUWKDW%\KROGLQJ WKHODQGDFUHVWKHFRRSHUDWLYHODQGVRFLHW\ZDVDEOHWRFDSWXUHOHDVHLQFRPHIURPWKHODQGIURPFRPPHUFLDOEXLOGLQJVDQGIURPDYDULHW\RIVRFLDOHQWHUSULVHVLWRZQHGDQGFRQWLQXRXVO\UHLQYHVWWKDWPRQH\LQFRPPXQLW\ LPSURYHPHQWV5HVLGHQWVZHUHHQJDJHGLQD PXWXDOEHQHILWV\VWHPRIXQSUHFHGHQWHGVFDOH/LYLQJZDVDIIRUGDEOHFRQYLYLDODQGSHRSOHKDG ZKDWWKH\QHHGHGFORVHE\,QDJURXSRIFRUSRUDWHUDLGHUVDQGILQDQFLHUVDWWHPSWHGWRWDNHRYHUWKHODQGGHPXWXDOL]HWKHRUJDQL]DWLRQDQGEUHDNWKHEDFNRIWKH´FRRSHUDWLYHODQGVRFLHW\µ7KHQDWLRQDOJRYHUQPHQWVXFFHVVIXOO\IRXJKWRIIWKH
The Garden City of Letchworth
Garden Cities were to separate residential fromindustrial areas, feature many trees and open spaces,and be surrounded by belts of agricultural land.Payments for community services (rates) plus leasepayments (rents) would create revenue for the co-operative and returns for its members. At Letchworth(left), cottage building competitions provided a venue toexperiments with pre-fabrication, home garden plots,and new building materials. Photocredit: Kingsway RealPhoto Series. Photo courtesy of Margaret Pierce.
 0XWXDOKRPHRZQHUVKLSOHYHUDJHVWKHDGYDQWDJHVRIWKUHHYHU\ GLIIHUHQWPRGHOVFRPPXQLW\ODQGWUXVWVVKDUHGHTXLW\WHQDQW  FRRSHUDWLYHVDQGWKHYLVLRQRIWKH/HWFKZRUWK*DUGHQ&LW\7KH UHVXOWFRXOGZHOOEHFRPHDJHQHUDWLYHVWFHQWXU\PRGHORIIDLU  DQGVXVWDLQDEOHKRXVLQJ
 
RQVODXJKWEXWYLFWRU\FDPHDWDFRVW7KHFRRSHUDWLYHRZQHUVKLSRIWKHODQGZDVWUDQVIRUPHGLQWRSXEOLFRZQHUVKLS7KHQLQLWZDVFKDQJHGEDFNWRDWD[H[HPSWPXWXDOVWUXFWXUHDQGWKHODQGDVVHWVWUDQVIHUUHGWRWKHQHZ /HWFKZRUWK*DUGHQ&LW\+HULWDJH&RUSRUDWLRQZLWKDOHJDOVWUXFWXUHOLNHWKDWZKLFK(EHQH]HU+RZDUGHVWDEOLVKHGLQ(VVHQWLDOO\D&/7WKLVQHZ´FRRSHUDWLYHODQGVRFLHW\µKDVUHJDLQHGDQXPEHURIODQGDVVHWVZLWK\HDUOHDVHV0DQ\RIWKHKRPHVZHUHHVWDEOLVKHGZLWK \HDUOHDVHVKRZHYHU7KH/HDVHKROG5HIRUP $FWJDYHRZQHURFFXSLHUVLQWKH8.WKHULJKWWREX\WKHLUOHDVHDWDQDIIRUGDEOHSULFH$VDUHVXOWDVWKH\HDUOHDVHVFRPHXSIRUUHQHZDOUHVLGHQWVDUHSXUFKDVLQJWKHSURSHUWLHVDQGIROORZLQJWKHORJLFRIWKHUHDOHVWDWHPDUNHWUHVHOOLQJWKHPDWDVLJQLILFDQWSURILW+RZWRFRPELQHWKHEHVWIHDWXUHVRIHDFKRI WKHVHPRGHOVZKLOHDYRLGLQJWKHLUUHVSHFWLYH ZHDNQHVVHV²WKLVZDVWKHSX]]OH3DW&RQDW\RI WKH1HZ(FRQRPLFV)RXQGDWLRQVHWRXWWRVROYH ZLWKDWHDPRIUHVHDUFKHUV7KHLUQRYHOVROXWLRQDW/HWFKZRUWK
The MHOS Model
 ZDVWKH0+26DQGLWKDVVLQFHEHHQFKDPSLRQHGE\&'6&RRSHUDWLYHV(QJODQG·VODUJHVWFRRSHUDWLYHKRXVLQJVHUYLFHDJHQF\DQGLWV&(2'DYLG5RGJHUV $VWKHGLDJUDPVKRZVDERYHWKHFRPPXQLW\ODQGWUXVWLVFHQWUDOWRWKH0+26PRGHO7KHWUXVWRZQVWKHODQGDQGKROGVLWIRUWKHSXUSRVHRISUHVHUYLQJDIIRUGDELOLW\LQSHUSHWXLW\7KHWUXVWLVVXHVDKHDGOHDVHWRD WHQDQWRZQHUVKLSFRRSHUDWLYHZKLFKHQDEOHVERWKWKHODQGWUXVWDQGWKHFRRSWRRUJDQL]HWKHILQDQFLQJZLWKKHOSIURP&'67KHWHQDQWRZQHUVKLSFRRSLVWKHQUHVSRQVLEOHIRUJHWWLQJ WKHDFWXDOFRQVWUXFWLRQFRPSOHWHGZLWKVXSSRUWIURPDQH[SHUWGHYHORSPHQWDJHQWDVHUYLFH ZKLFK&'6DOVRSURYLGHV7KHHYHQWXDOPRUWJDJHWKDWSD\VIRUWKHEXLOGFRVWLVKHOGFRUSRUDWHO\E\WKHFRRS/LNHWKH6ZHGLVKPRGHOPHPEHURZQHUVOHDVHWKHLUXQLWVIURPWKHFRRS2QHSUHUHTXLVLWHLVD GHSRVLWRIZKLFKLVFRQYHUWHGLQWRHTXLW\VKDUHVLQWKHFRRS7KHUHDIWHUHTXLW\ VKDUHVDUHDOVRIXQGHGWKURXJKPHPEHUV·UHQWDOSD\PHQWV7KHVHSD\PHQWVWKHDVVHWDQGWKHODQGVHFXULW\SURYLGHGE\WKHWUXVWDQGWKHFRRS·VSURMHFWHGOHDVHLQFRPHWRJHWKHUIRUPWKHEDVLVIRUILQDQFLQJHDFKSURMHFW7KHSRROLQJRI 
UHVRXUFHVLQWRDVLQJOHPRUWJDJHSDFNDJHKHOSVUHGXFHWKHFRVWRIILQDQFLQJZKLFKLVDQLPSRUWDQWFRQWULEXWLRQWRDIIRUGDELOLW\,QWKH8.·VFXUUHQWULVNDYHUVHPDUNHWLQGLYLGXDOPRUWJDJHVDUHHVSHFLDOO\KDUGIRUSURVSHFWLYHKRPHRZQHUVWRFRPHE\$QRWKHUFRVWVDYLQJVIORZVIURPWKHDVVLJQPHQWRIHTXLW\VKDUHVDQGRFFXSDQF\ULJKWVE\PHPEHUV7KLVHOLPLQDWHVWKHOHJDODQGRWKHUFORVLQJFRVWVWKDWDUHSDUWRI EX\LQJDQGVHOOLQJKRXVHV2QFHFRQVWUXFWLRQLVFRPSOHWHWKHFRRSLVVXHV\HDUUHQHZDEOHOHDVHVWRPHPEHUV7KH\FDQVWD\DVORQJDVWKH\ZDQWVRORQJDVWKH\PHHWWKHLUREOLJDWLRQV2QHRIWKHPRVWLPSRUWDQWREOLJDWLRQVLVWRPDNHOHDVHSD\PHQWVFDOFXODWHGDWRIPRQWKO\ KRXVHKROGLQFRPHDIWHUWD[HVDQGGHGXFWLRQV,IP\KRXVHKROG·VWDNHKRPHLQFRPHLVSHUPRQWKZHZLOOSD\:HUHZHHDUQLQJ SHUPRQWKZHZRXOGSD\SHUPRQWKIRUWKHVDPHXQLW7KLVVHHPVIDLUDQGHTXLWDEOH,W·VD IRUPXODZLGHO\XVHGE\FRRSVLQ&DQDGD+RZHYHUWKHGHVLJQHUVZLVHO\IRXQGDZD\WRUHFRJQL]HWKHKLJKHUFRQWULEXWRUV7KLVLVZKHUHWKHVKDUHVFRPHLQ(YHU\ERG\SD\VWKHGHSRVLWXSIURQW7KHVHEHFRPHVKDUHVZLWKDIDFH
COMMUNITYLAND TRUSTCO-OPERATIVELENDER/INVESTOR
CLT licensesconstruction & leases landCLT & Co-opsecure building loanIncoming members purchaseoccupancy rights & equity sharesfrom outgoing membersCLT holds land title,by purchase or donationCo-op hires service agency to providemaintenance, cleaning, financialmanagement, governance advice.
 
Co-op builds & owns housing
The Mutual Home Ownership Society
provideslong-termloan
Shared Equity Co-op Housing
Outgoing members leave with thegrowth in value of the equity sharesthey financed (minus an agreed %)
Co-op members pay an income-related monthly fee for mortgage,management, maintenance, cleaning, etc. When they can paymore, they are expected to do so. Their deposit & contributionsto mortgage repayment finance their equity shares in the co-op.
2011 dec 15
3

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->