communityrenewal.ca/renouveaucommunautaire.

ca 2011 nov 11 1
v
lth aes |arel keepln up lth lnllatlen ler the last
]0 ears, an lncreaslnl lare nun|er el heuse-
helas lace a cennen allenna: the cannet allera
te lle ln the cennunltles ln hlch the erk. Jeachers,
nurses, ana pellcenen lace len cennutes aall |ecause the
prlce el a aeer kne| en :alt :prln lslana, .t. (er lenaen,
Lnlana ler that natter) ls ell |eena thelr neans.
\lleraa|le rentals are llkelse ln shert suppl. :helter cests
rlse lne\era|l. \re there an alternatle ceurses el actlen that
reallstlcall sten the tlae? can
Jhree thlns push the cest el heusln steaall upara: censtructlen
cests, nertae lnterest, ana the cest el lana. 8eaucln censtructlen cests
ls net that eas, |arrln the aalla|lllt el sene seat eult te lnest.
vlth respect te lnterest cests there are clear alternatles. :lnce the arep
ln nertae rates ten ears ae thls has net |een such a |l pre|len.
ueeer, the ]0-ear aerae ln nertae rates ls a|eut 8. lee-|asea
lenaln lneles ne lnterest chares. ler e\anple, the [\K te-eperatle
Affordability
Locked In
Community land trusts good news for households, communities, & taxpayers
ank ln :eaen chares a |lena el lees, se that the cests el a lean eer +0
ears eula |e cenpara|le te a|eut a !.5 lnterest rate. Jhat eula nake a
|l alllerence te hat eu eula pa ler a heuse ln tanaaa. \ssunln eu
put J0 aen en a ;]oJ,000 heuse (the aerae prlce el a heuse ln !0JJ),
the alllerence |eteen 8 ana !.5 eula reauce eur lnterest cests | a
heppln ;]!8,000. 0eln lren cenpeuna lnterest te lee-|asea nertaes
ls a hue culture shllt, ler censuners ana ler llnanclal lnstltutlens. ut lt
ellers enerneus |enellts te the ecenenlcs el heusehelas. trealt unlens
seen the e|leus lnstltutlen te take up the challene ana take the leaa ln
aaaptln thls lnneatlen te tanaaa.
eer the len tern lnestnents ln
(:ee :eaen`s [\K ank,
\el. !0, \e. ], pp. 5J-57.)
lana ls the last el the l Jhree ln terns el cest. ue nuch el a
alllerence eula lt nake te len-tern alleraa|lllt ll e haa a a te renee
the splrallln cest el lana lren the euatlen? Mlht e presere alleraa|lllt
ln a entrllln nelh|eurheea, ana realn centrel lren a|sentee lana
eners? teula e ena|le aerae ae earners te lle here the erk?
veula e help presere eernnent
alleraa|le heusln, rather than alleln |eth pu|llc su|slales ana capltal
alns te accrue te heeer sells the heuse? Jhese are teuh uestlens.
0DNLQJ
:DYHV
by Pat Conaty and Michael Lewis
Burlington, Vermont, home to
Champlain Housing Trust. Credit:
Jared and Corin (redjar on Flickr).
Le prix des logements a tellement mont dans
plusieurs endroits que mme les professionnels
ne peuvent se permettre de vivre dans la
communaut dans laquelle ils travaillent.
Toutefois, alors que la crise saccentue, la
capacit et le souhait des gouvernements
dintervenir diminue.
Une grosse partie du problme est le cot
des terrains. Le cot de btir une maison ne peut
tre rduit, moins de pouvoir la construire soi-
mme. Le cot dune hypothque ne peut pas
tre rduit, moins quil y ait des prts
commission. Mais il y a quelque chose que nous
pouvons faire pour limiter le cot des terrains
mme pour lenlever du prix dune maison tout
jamais.
Un Community Land Trust (CLT) est une socit
sans but lucratif qui conserve les titres dun
ensemble de terrains donns ou acquis, tout en
permettant des personnes ou des organisations
dacheter, de conserver, damliorer et de vendre
des difices sur ces terrains. La vente est sujette
une formule de revente qui garde les difices
abordables pour les mnages lintrieur dune
tranche de revenus donne. Lorsquune maison
est vendue, son prix est surtout dtermin par la
condition de la maison et par le revenu mdian du
secteur, et non par la valeur marchande du terrain
occup par la maison. Si le gouvernement utilise
une subvention (p. ex. un prt daccs la
proprit) pour rendre la maison abordable dans
un march de limmobilier chaud , des
subventions plus leves ne sont pas requises
pour garder la mme maison abordable cinq ou
dix ans plus tard.
Cest une raison pour laquelle il y a mainte-
nant plus de 250 CLT aux tats-Unis. Les CLT
favorisent les investissements gouvernementaux
dans les logements abordables en sassurant que
les contribuables nont pas augmenter les
subventions de logement pour garder le pas avec
le march de limmobilier.
Rsum : Abordabilit verrouille
2011 nov 11 2
Jhe tennunlt lana Jrust (tlJ) neenent ln the lnltea :tates has |een prelaln ansers te then ler
eer leur aecaaes. ler the llrst !0 ears, lt staea snall. \lter J))0, haln preen hat can |e achleea, tlJs
hae ren ln slie ana nun|er. tlJs hae seeral unlue leatures.
\enprellt, ta\-e\enpt cerperatlens: lt ls the nlsslen el tlJs te presere alleraa|lllt, prenete seuna
nalntenance, ana preent lereclesures en |ullalns lecatea en the tlJ's lana. tlJs are er lle\l|le. Jhe can
prelae heusln ler rent er ler purchase. Jhe can |e usea ler such place-shapln lacllltles as erkspace,
araens, renea|le ener, ana anenltles. Jhe can aculre lana threuh purchase, ta\ a|atenents, ana
pu|llc er prlate aenatlen.
0ual enershlp ana ananlc prepert rlhts: tlJs separate the enershlp el the lana lren the enershlp el
the |ullalns en lt. Jhe lana ls retalnea lereer ln trust | the tlJ ler the surreunaln cennunlt, that
ellectlel ana pernanentl renees the lana lren the narket. centrast, |ullalns en the tlJ`s lana are
sela te ana enea | lanllles, ce-eperatle heusln cerperatlens, snall |uslnesses, er nenprellt eranlia-
tlens.
leasea lana ana heusln alleraa|lllt: Jhe trust`s lana ls neer sela te the lnha|ltants, lt ls leasea. Lach tlJ
aeeleps a resale lernula te keep the heusln alleraa|le eer the len tern. Jhe aln ls te alllerentlate the
lana hlch the tlJ retalns ler cennunlt use ln perpetult lren the stlpulatea eult share an ener-
eccupant can recele en the sale el the heusln unlts. Jhe tlJ e\erclses thls peer threuh a pre-enptle
rlht te |u hen heusln unlts are resela. Lach tlJ nalntalns a altln llst ler heusln ana these lealn a
tlJ hae a centractual e|llatlen te sell |ack thelr heusln te the tlJ at a prlce set | the resale lernula ln
the lease.
0pen ana place-|asea nen|ershlp: tlJs eperate lthln a speclllc eeraphlcal area. ln the l.:.\. lt na |e a
rural ten er rural ceunt, an ur|an alstrlct, er an entlre clt.
Jrlpartlte eernance: Jhe |eara el a tlJ ls cenpesea el three tpes el stakehelaer. \ernall a thlra el |eara
nen|ers are electea representatles el the tlJ`s lessees. \nether thlra are electea | reslaents el the laer
cennunlt he are nelther leasehelaers ner tenants el tlJ prepert. Jhe llnal thlra are appelntea te
represent the lecal pu|llc lnterest, ana na lncluae pu|llc secter elllclals, nen-prellt serlce prelaers, ana
lecal lunaers.
Jhe tlJ cencept ls lereln te the usual a e thlnk a|eut prlate hene enershlp ln \erth \nerlca. ve
thlnk a|eut ettln a aen panent, ualllln ler a nertae, |uln a heuse ana the lana unaer lt, settlln
aen, ana at sene pelnt sellln aaln ler a slnlllcantl hlher prlce than hat e erllnall pala. ve en lt ana
e plan te |enellt lren lt - all el lt, lana lncluaea. :ene el us hae learnea te antlclpate the aaantaes that
nlht aerle lren pu|llc lnestnents ln lnlrastructure, transpert, ana anenltles ln the lclnlt el eur a|eae. ll
e hae the nene ana the snarts te lecate ln an area ler hlch such pu|llc lnestnents are slatea e can
e\pect te |enellt lren a |u||le ln the alue el the lana. ve can lllp lt ana nake a aa el cash, hat can rlhtl
|e ternea unearnea eult.
ut thls a el aeln thlns ls lealn nere ana nere el eur lelle cltliens |ehlna. \s the crlsls el
alleraa|lllt res, the capaclt el eernnents te aeal lth lt seens te alnlnlsh. larer ana larer ta\paer-
lunaea su|slales are reulrea te keep unlts el seclal heusln alleraa|le te peer ana neaerate lncene peeple.
tlJs are a strate that renees lana lren the heusln narket ltheut alscennectln reslaents lren thelr
lnterest ln enln, nalntalnln, ana lnpreln |ullalns. uere ls he ene el the nest aaancea tlJs ln \erth
\nerlca has achleea thls.
\ernent ls a rural, neuntalneus state lth er le lare enpleers ana the leest aes ln \e Lnlana. Man
reslaents cennute !-] heurs te erk each aa. Jhe ap |eteen aerae lncenes ana heusln cests ln \ernent
ls ene el the hlhest ln the lnltea :tates: +7 el renters ana ]8 el heneeners pa nere than ]0 el thelr
ress lncene en heusln.
urllnten ls a snall unlerslt ten ln the state ana the hene |ase el the thanplaln ueusln Jrust (tuJ)
the larest tlJ ln the l.:.\. ana the llrst te e\pana lts lanahelalns threuh partnershlp lth a nunlclpallt. Jhe
J
!

The Champlain Housing Trust

BALTA Research:
Community Land Trust
Models for Affordable
Housing in B.C.
This 2-part research project examined
alternative land tenure and property
models in a variety of jurisdictions. It
assessed the applicability of these
models in the social economy of
British Columbia and recommended
strategies for making that application
a reality.
Phase 1, Alternative Land Tenure
and the Social Economy by Karen
Heisler, involved a literature review
and an investigation of the range and
scale of four models of shared-equity
land tenure in use in the U.S.A, the
United Kingdom, and Canada:
Conservation Land Trusts, Community
Land Trusts, Cooperative Land Banks,
and Community/Municipal Land
Banks. The legal, financial, opera-
tional, geographic, regulatory, and
social features and dynamics of each
model were examined, as well as the
organizational structures employed
and the ethos of its users. Finally, a
judgment was made as to the
transferability of each model to B.C.
and Alberta.
Phase 1 concluded that land trusts
could be important in B.C. and
Alberta for developing community
and regional responses to affordable
housing and food security. Both
provinces have a good record of
applying land trusts to environmental
conservation. However, to date little
interest has been displayed in
applying the model to affordable
housing or agriculture. Nor has there
been much enthusiasm for
broadening the mandate of
conservation-oriented land trusts to
encompass social purposes.
Phase 2 of the research is
currently underway. It concerns the
expansion of land trusts in B.C. in
particular. Attention is being devoted
to the organizational details and
operations of housing-related land
trusts now active in the province, and
the opportunities, barriers, and
possible strategies for developing and
scaling up land trusts for affordable
housing.
trust`s erllns lle ln the nla-J)80s, alter the llrst 8eaan aanlnlstratlen
enaea leaeral eernnent prerans te luna alleraa|le heusln. \n
e\panaln aenten ana rlsln enrellnent at urllnten`s three cellees
pushea heusln prlces threuh the reel. Jhe attenpts el urllnten
Maer ernle :anaers ana hls lreressle tealltlen te achlee rent
centrel lallea. Jhe turnea te the lnstltute ler tennunlt Lcenenlcs
hlch haa |een aeelepln ana prenetln the tlJ cencept slnce the
earl J)70s. :anaers ana the tealltlen esta|llshea a tennunlt ana
Lcenenlc 0eelepnent 0lllce at tlt uall ana ln J)8+ are up a strate
te create te nenprellt eranliatlens, the urllnten tennunlt lana
Jrust ana lake thanplaln ueusln 0eelepnent terperatlen. Jhe lana
Jrust as startea lth a ;!00,000 rant lre the clt ana later, a ;J nllllen
llne el crealt lren the clt enpleees` penslen luna. 0er tlne, the
eeraphlc terrlter, serlces, ana lunaln seurces re te eerlap ana
the te eranliatlens nerea te lern the thanplaln ueusln Jrust ln
!00o.
\t present, tuJ has ln lts pertlelle eer !,000 unlts el pernanentl
alleraa|le heusln lnslae urllnten clt llnlts ana scatterea acress
three aajacent ceuntles. \ppre\lnatel o0 el the unlts are resale-
restrlctea, ener-eccuplea heuses ana cenaenlnluns, the ether +0
are rental apartnents. :lnce !00J the eranliatlen`s stall has ren lren
leur te eer 70. tuJ ellers seeral cenpenents that ln cen|lnatlen can
sere te lnpree the uallt ana alleraa|lllt el heusln aranatlcall.
Je , ene ln urllnten ana ene ln the
rural ten el :t. \l|ans, lnterate hene|uer eaucatlen lth ae|t ana
|uaetln aalce ana hene nalntenance ceurses ler llrst-tlne
hene|uers. 0er ]00 peeple a ear learn he te neet the crlterla el
cenentlenal nertae lenaers ana steer clear el preaater lenaers ana
nertae |rekers. Jhe aalser serlce helps heusehelas |rln
censuner crealt ana ether ae|t pre|lens unaer centrel.
eller aen panent rants lunaea | lecal,
state, ana leaeral eernnent seurces ln aaaltlen te nertaes at lnterest
rates alnest ! leer than the aerae. tuJ has erkea lth lecal |anks
te aeelep llnancln packaes lth panent structures alleraa|le te le-
lncene heusehelas.
tuJ ne|lllies lts te centrl|ute te a peel el lunas that
ls usea te ceer eperatln cests. turrentl, there are +,000 nen|ers ln a
relen lth a pepulatlen el J00,000. Men|ers lncluae lecal |uslnesses
as ell as lnallaual cltliens. :ene jeln lth a panent el ;50 er less
(the carpenter rate), ethers nake a larer lnestnent (the cennunl-
t aeeleper rate ls ;!50-;500 ana the lslenar rate ls ;J,000 ana
eer). Man nen|ers reularl aenate te lurther the Jrust`s erk. Jhese
rassreets lunas are usea te leerae aaaltlenal capltal rants lren the
\ernent ueusln ana tenseratlen eara, the tlt el urllnten ueusln
0epartnent, ana the leaeral eernnent. :uppert lren the tlt ana the
:tate has |een cruclal ln e\panaln the Jrust`s eperatlens slnce J))).
Je cenplenent lts heusln erk, the tlJ has aeelepea a aa centre
ler the elaerl, a nurser laclllt, seclal enterprlse ana nenprellt elllces, a
shep lrent ler the lecal crealt unlen, an elllce ler the cennunlt leal
aalce centre, ana a nultl-unlt |uslness lncu|ater.
]
+
+RPHRZQHUVKLS&HQWUHV
)LQDQFLQJSDFNDJHV
PHPEHUVKLS
A Double Bottom Line: Taxpayer
Savings Household Benefits
\nerlcan tlJs use a arlet el netheas te purchase real estate at less cest.
Jhe precess lneles censlaera|le tlne ana ellert, |ut tlJs hae |een a|le
steaall te aculre lana ler alleraa|le heusln ana/er te aculre e\lstln
heusln ana nake lt nere alleraa|le eer tlne. Jhe cen|lnatlen el prlate
aenatlens ana pu|llc su|slales ena|les tlJs te leerae ana nalntaln
su|slales at a cest te the pu|llc purse that ls lar leer than cenentlenal
appreaches te the su|slaliatlen el le-lncene heusln.
let`s leek llrst at the tuJ uenelana 0rant preran. lt ena|les le-
lncene heusehelas te |u prepertles en the epen narket. \ rant el
;!!,000 (ralsea nalnl lren leaeral, state, ana nunlclpal seurces), a le
lnterest-rate nertae, ana a resale stlpulatlen accenpllshes te thlns.
llrst, the uallt el the heusln alleraa|le te le-lncene heusehelas
lncreases slnlllcantl ln the here ana ne. :ecena, the sane heusln
renalns alleraa|le te le-lncene heusehelas ln perpetult. Ja|le J shes
he the preran erks ler a lanll el leur lth an annual lncene el
l:;]),]50, cenparea te slnllar heusehela lth a cenentlenal nertae.
Household Income $39,350 $39,350
Mortgage Entitlement
monthly @ 30% less CLT
ground rent for lease $714 $709
Mortgage Interest Rate 6.15% 4.25%
Maximum Mortgage $117,197 $144,123
BCLT Homeland Grant 0 $22,000
Maximum House Price which
the household can afford $117,197 $166,123
Conventional Mortgage CHT Option
Table 1: The CHT Homeland Grant Program
Jhelr nenthl nertae entltlenents are slnllar. ueeer the
heusehela that ualllles ler the tuJ eptlen |enellts |eth lren a rant el
;!!,000 ana the leer lnterest rate el +.!5. Jhls cen|lnatlen el rant
ana le-lnterest nertae ena|les the heusehela te allera a prepert that
ls ;+8,)!o (+!) nere e\pensle ler lrtuall the sane nenthl panent.
Jhls analsls shes he the tlJ can stretch the lnpact el a pu|llc
su|sla. \nether stua has reealea he thls neael can achlee aranatlc
salns ler ta\paers. Jhe cests el a tlJ-lunaea unlt el heusln ere
cenparea lth these el a traaltlenal eernnent su|sla preran. Ja|le !
(see ne\t pae) shes he cenentlenal ana tlJ su|sla perlernances
cenpare hen the sane prepert ls resela lle tlnes eer ]0 ears.
ln the e\anple, a ;50,000 pu|llc su|sla, hen pretectea | the lana
trust ana the tlJ resale lernula, preseres a tlJ hene`s alleraa|lllt eer
]0 ears een ll the hene ls resela eer seen ears te a ne lanll. ln
centrast, unaer the cenentlenal alleraa|le heusln su|sla preran, the
pu|llc su|sla ls repala each tlne the hene resells ana the seller ls
alleea te claln all the capltal alns. \s a result, a reater pu|llc su|sla ls
2011 nov 11 3
reulrea alter eer sale just te keep the heusln alleraa|le. vlth an
annual heuse prlce lnllatlen rate el o, ralsln the heuse`s sale prlce te
;]75,000 ler the secena le lncene ener, the eernnent eula hae te
lnest o0 nere, ler a tetal el ;80,000, te keep the heuse alleraa|le. Jhe
pu|llc su|sla just keeps eln up alter eer sale: ;J]!,000 ln \ear J+,
;!Jo,000 ln \ear !J, ana ;]+!,000 ln \ear !8.
the ta\paer ;8!0,000. Jhe results aenenstrate he lnpertant lt ls te take
the lana pernanentl eut el the narket ana te lnpese pernanent centrels
eer the resale prlce el the heusln ln eraer te assure len-tern alleraa|lll-
t. lt alse shes hat tlJs alene can accenpllsh, nanel, the capture el an
pu|llc su|sla er lana llt lthln the lana trust |alance sheet, thus
preserln ler perpetual cennunlt |enellt a pu|llc er seclal lnestnent ln
lana.
Jhe alleraa|le heusln crlsls ln the l.:. has acceleratea the aeelep-
nent el tlJs. Jhe are lncreasln ln nun|er heneer ana hereer real
estate narkets are er het. (:ee slae|ar, lrlne tennunlt lana Jrust,
ne\t pae.) Jhreuh the ueneenershlp lnltlatle, the \ernent ueusln
ana tenseratlen eara has suppertea the aeelepnent el lle nere tlJs
threuheut the state, each eperatln ln an area lth a pepulatlen el a|eut
J00,000. \cress the l.:. there are ne eer !50 tlJs. lnterest lren lecal
eernnent, especlall ln the ake el the crealt crunch, ls reln.
llnkln lana, alleraa|lllt, ana a trust neael el tenure ls a reelutlen ln
the nakln.
o
J
Jhere are ne appre\lnatel !50 cennunlt lana trusts ln the l:\, ana llealln
neenents ln Lnlana, \ustralla, ana ellun.
!
]
+
5
o
Maura telllns, eteen a 8eck ana a uara llace: ueusln ana vaes ln \ernent
(\ernent ueusln llnance \enc, \prll !0JJ), accessea !5 0cte|er !0JJ
<http://.hla.er/aecunents/heusln-aes-!0JJ.pal>.
0lane 0lacen, 8lchara tlarke, ana :llla 0ulnaraes,
(tealllle, lelcestershlre:
ullaln ana :eclal ueusln leunaatlen, !005).
:tall, , accessea !5 0cte|er !0JJ
<http://.chanplalnheuslntrust.er>.
[ehn Lnneus 0als ana 8lck [ace|us,
(tan|rlae, Mass.: llnceln lnstltute el lana
lellc, [une !008), pp. 8-), accessea !5 0cte|er !0JJ
<http://.lhtn.er/l0l/tlt-tlJlellc8epert.pal>.
tlJs hae alse aenenstratea thelr ellectleness ln preentln lereclesures ln cela
real estate narkets. :ee 8e|ecca aran-8ees, , tennunlt lana Jrusts: an
analsls el tlJs ln three heusln narkets (ternell lnlerslt, Ma !0JJ), p. J5 ll.,
accessea ) \een|er !0JJ
<http://eernnent.cce.cernell.eau/aec/pal/aran8ees_tlJ.pal>.
5HGHILQLQJWKH&RPPRQV
/RFNLQJLQ9DOXHWKURXJK&RPPXQLW\/DQG7UXVWV
&KDPSODLQ+RXVLQJ7UXVW
7KH&LW\&/73DUWQHUVKLS0XQLFLSDO
6XSSRUWIRU&RPPXQLW\/DQG7UXVWV
HWDO
References
PAT CONATY is a research fellow at the New Economics Foundation, London, England, and a
collaborator in the BC-Alberta Social Economy Research Alliance (BALTA). Contact him at
pat.commonfutures@phonecoop.coop. MICHAEL LEWIS is editor of , Executive Director of
the Canadian Centre for Community Renewal (CCCR), a founding member of the Canadian
CED Network (CCEDNet), and lead investigator for BALTA. Contact him at
ccelewis@xplornet.com.
This text is an excerpt from
, by Michael Lewis and Pat Conaty
(forthcoming, New Society Books, 2012). It explains how we can power
down our economies to a more local and sustainable level and thereby
meet the challenges of climate change and rising energy prices.
i4
The Resilience Imperative: Co-operative
Transitions to a Steady-State Economy
Click here
to pre-order!
B.C.-Alberta Social Economy Research Alliance
BALTA
l
+
+
l
is an ejournal about Inspiring, Innovating, Inciting, and Inventing ways of life and
work that permit humanity and the planet to thrive in this century of unprecedented
challenges. is a publication of the Canadian Centre for Community Renewal.
*
**
***
The Homebuyer Loan is repaid without interest upon resale of the house. It enables the
buyer to afford the home, but does not reduce the actual price of the home. The CLT
subsidy stipulates that the resale price may not exceed the initial price, plus an adjustment
based on the annual change in the Area Median Income (AMI).
The home is assumed to have a value of $250,000 in an area where the family in the
target income range can afford $200,000.
Assumes 6% annual inflation in home price, 3% annual income inflation, and stable
interest rates.
lt aees net take a recket sclentlst te llure eut hlch ssten ls nere
|enellclal ana elllclent. Jhe tlJ neael cests ta\paers ;50,000. Je achlee
the sane alleraa|lllt e|jectle, the cenentlenal su|sla appreach cests
Affordability Locked In is part of the i4 special series Housing We Can Afford, concerning
the role of the social economy in resolving the growing shortage of affordable housing. The
series is sponsored by the BC-Alberta Social Economy Research Alliance.
: Subsidy Performance over time Conventional
Homebuyer Loan v. CLT
Table 2
5
Initial Sale Homebuyer Loan CLT Model
Resale in Year 7
Resale in Year 14
Resale in Year 21
Resale in Year 28
* *
Initial market value $250,000 $250,000
Grant (public subsidy) $50,000 $50,000
Initial sale price $250,000 $200,000
Sale price $375,000 $245,000
Repay first mortgage ($174,051) ($174,051)
Repay public subsidy ($50,000) 0
Sales cost (6%) ($22,500) ($14,700)
Affordable price to next buyer $245,000 $245,000
Recaptured subsidy $50,000 0
Total subsidy for next buyer $130,000 0
Sale price $565,000 $303,000
Sale price $850,000 $372,000
Sale price $1,278,000 $458,000
over
30 years for 5 families
** **
*** ***
Proceeds from sale $128,449 $56,249
Additional subsidy required $80,000 0
Additional subsidy required $132,000 0
Additional subsidy required $216,000 0
Additional subsidy required $342,000 0
Total subsidy invested
$820,000 $50,000
2011 nov 11 4
condominiums, for sale or rent. Under the terms
of a ground lease, they would remain under the
stewardship of a municipally-sponsored
community land trust that was to ensure that
they remained permanently affordable.
Irvine Community Land Trust (ICLT) was
incorporated in March 2006. It was not to act as
a developer. That would be the job of private and
nonprofit corporations. ICLT would help gather
and leverage resources, while finding and
screening buyers for the homeownership units
and monitoring those units over time. To support
the Trust, the City projected $143 million in
redevelopment funds set aside from the park
project and another $125 million in in-lieu fees.
Sales work this way. ICLT applicants must pre-
qualify with a prime mortgage lender and have
5% of the total purchase price available at time
of purchase. Most units are limited to house-
holds earning less than 120% of the AMI; many
are limited to those earning less than 80%.
People who have been living and working in
Orange County for a year prior to application get
priority.
Applicants must also agree to the resale formula:
Initial Purchase Price
+ Increase in price based on the change in AMI
(about 2.6% lately)
+ the Value of approved capital improvements
= Maximum Resale Price
When a homeowner wishes to sell, the ICLT has
the right to purchase the home at the resale
formula price (or the appraised market value if this
is lower). If the Trust does not exercise this option,
the homeowner still must sell the home to a
qualified buyer for no more than the resale formula
price.
One of ICLTs biggest partners is the nonprofit
developer Jamboree Housing Corporation, which
aims to supply over half of those 9,700 units.
Jamboree has just completed Doria Apartment
Homes (see photo, below), a joint venture to which
ICLT contributed $1.6 million. Dorias first 60 units
were made available to households earning 30-60%
AMI. Ten units were reserved for recipients of
mental health services. It was fully rented within 30
days of opening, and has a long waiting list.

In 1975, the City of Irvine, California launched a

pioneering inclusionary-housing program. Of all
newly-built housing, 15% had to be affordable to
low- or moderate-income households for up to 30
years. Developers could pay a fee in-lieu of
providing the housing. By this means Irvine had
produced 3,155 units of affordable housing by
2005. Unfortunately, by that time 1,000 of those
units already were selling at market-rate prices,
and more would soon follow. Whereas the median
housing price in town was about US$800,000, the
area median income (AMI) of households was
about $60,000.
At the same time, the city found itself in
possession of a property windfall. Six years before,
a 4,700-acre military base adjacent to the city had
closed. The city had elected to turn it into a giant
urban park and surround it with a mixed-income,
mixed-use community.
With both a problem and an opportunity in its
lap, city council convened a housing task force. It
proposed the development of 9,700 new
affordable-housing units in the city by 2025.
Properties could be houses, apartments or
Irvine Community Land Trust
2011 nov 11 5
Photography: Juan Tallo. Courtesy of
Jamboree Housing Corporation, URL:
http://www.jamboreehousing.com
$VWKHFULVLVRIDIIRUGDELOLW\JURZVWKHFDSDFLW\RIJRYHUQPHQWVWRGHDOZLWKLWVHHPVWR
GLPLQLVK&/7VDUHDVWUDWHJ\WKDWUHPRYHVODQGIURPWKHKRXVLQJPDUNHWZLWKRXW
GLVFRQQHFWLQJUHVLGHQWVIURPWKHLULQWHUHVWLQRZQLQJPDLQWDLQLQJDQGLPSURYLQJEXLOGLQJV