communityrenewal.ca/renouveaucommunautaire.

ca 2011 nov 11 1
v
lth «a¿es |arel¸ keepln¿ up «lth lnllatlen ler the last
]0 ¸ears, an lncreasln¿l¸ lar¿e nun|er el heuse-
helas lace a cennen allenna: the¸ cannet allera
te ll·e 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, ß.t. (er lenaen,
Ln¿lana ler that natter) ls «ell |e¸ena thelr neans.
\lleraa|le rentals are llke«lse ln shert suppl¸. :helter cests
rlse lne\era|l¸. \re there an¸ alternatl·e ceurses el actlen that
reallstlcall¸ sten the tlae? can
Jhree thln¿s push the cest el heusln¿ steaall¸ up«ara: censtructlen
cests, nert¿a¿e lnterest, ana the cest el lana. 8eaucln¿ censtructlen cests
ls net that eas¸, |arrln¿ the a·alla|lllt¸ el sene s«eat eçult¸ te ln·est.
vlth respect te lnterest cests there are clear alternatl·es. :lnce the arep
ln nert¿a¿e rates ten ¸ears a¿e thls has net |een such a |l¿ pre|len.
ue«e·er, the ]0-¸ear a·era¿e ln nert¿a¿e rates ls a|eut 8°. lee-|asea
lenaln¿ ln·el·es ne lnterest char¿es. ler e\anple, the [\K te-eperatl·e
Affordability
Locked In
Community land trusts – good news for households, communities, & taxpayers
ßank ln :«eaen char¿es a |lena el lees, se that the cests el a lean e·er +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° ae«n en a ;]oJ,000 heuse (the a·era¿e prlce el a heuse ln !0JJ),
the alllerence |et«een 8° ana !.5° «eula reauce ¸eur lnterest cests |¸ a
«heppln¿ ;]!8,000. 0eln¿ lren cenpeuna lnterest te lee-|asea nert¿a¿es
ls a hu¿e culture shllt, ler censuners ana ler llnanclal lnstltutlens. ßut lt
ellers enerneus |enellts te the ecenenlcs el heusehelas. trealt unlens
seen the e|·leus lnstltutlen te take up the challen¿e ana take the leaa ln
aaaptln¿ thls lnne·atlen te tanaaa.
e·er the len¿ tern ln·estnents ln
(:ee :«eaen`s [\K ßank,¨
\el. !0, \e. ], pp. 5J-57.)
lana ls the last el the ßl¿ Jhree ln terns el cest. ue« nuch el a
alllerence «eula lt nake te len¿-tern alleraa|lllt¸ ll «e haa a «a¸ te rene·e
the splrallln¿ cest el lana lren the eçuatlen? Ml¿ht «e preser·e alleraa|lllt¸
ln a ¿entrll¸ln¿ nel¿h|eurheea, ana re¿aln centrel lren a|sentee lana
e«ners? teula «e ena|le a·era¿e «a¿e earners te ll·e «here the¸ «erk?
veula «e help preser·e ¿e·ernnent
alleraa|le heusln¿, rather than alle«ln¿ |eth pu|llc su|slales ana capltal
¿alns te accrue te «hee·er sells the heuse? Jhese are teu¿h çuestlens.
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 monté dans
plusieurs endroits que même les professionnels
ne peuvent se permettre de vivre dans la
communauté dans laquelle ils travaillent.
Toutefois, alors que la crise s’accentue, la
capacité et le souhait des gouvernements
d’intervenir diminue.
Une grosse partie du problème est le coût
des terrains. Le coût de bâtir une maison ne peut
être réduit, à moins de pouvoir la construire soi-
même. Le coût d’une hypothèque ne peut pas
être réduit, à moins qu’il y ait des prêts à
commission. Mais il y a quelque chose que nous
pouvons faire pour limiter le coût des terrains –
même pour l’enlever du prix d’une maison à tout
jamais.
Un Community Land Trust (CLT) est une société
sans but lucratif qui conserve les titres d’un
ensemble de terrains donnés ou acquis, tout en
permettant à des personnes ou des organisations
d’acheter, de conserver, d’améliorer et de vendre
des édifices sur ces terrains. La vente est sujette à
une formule de revente qui garde les édifices
abordables pour les ménages à l’intérieur d’une
tranche de revenus donnée. Lorsqu’une maison
est vendue, son prix est surtout déterminé par la
condition de la maison et par le revenu médian du
secteur, et non par la valeur marchande du terrain
occupé par la maison. Si le gouvernement utilise
une subvention (p. ex. un prêt d’accès à la
propriété) pour rendre la maison abordable dans
un marché de l’immobilier « chaud », des
subventions plus élevées ne sont pas requises
pour garder la même maison abordable cinq ou
dix ans plus tard.
C’est une raison pour laquelle il y a mainte-
nant plus de 250 CLT aux États-Unis. Les CLT
favorisent les investissements gouvernementaux
dans les logements abordables en s’assurant que
les contribuables n’ont pas à augmenter les
subventions de logement pour garder le pas avec
le marché de l’immobilier.
Résumé : Abordabilité verrouillée
2011 nov 11 2
Jhe tennunlt¸ lana Jrust (tlJ) ne·enent ln the lnltea :tates has |een pre·laln¿ ans«ers te then ler
e·er leur aecaaes. ler the llrst !0 ¸ears, lt sta¸ea snall. \lter J))0, ha·ln¿ pre·en «hat can |e achle·ea, tlJs
ha·e ¿re«n ln slie ana nun|er. tlJs ha·e se·eral unlçue leatures.
\enprellt, ta\-e\enpt cerperatlens: lt ls the nlsslen el tlJs te preser·e alleraa|lllt¸, prenete seuna
nalntenance, ana pre·ent lereclesures en |ullaln¿s lecatea en the tlJ's lana. tlJs are ·er¸ lle\l|le. Jhe¸ can
pre·lae heusln¿ ler rent er ler purchase. Jhe¸ can |e usea ler such place-shapln¿¨ lacllltles as «erkspace,
¿araens, rene«a|le ener¿¸, ana anenltles. Jhe¸ can acçulre lana threu¿h purchase, ta\ a|atenents, ana
pu|llc er prl·ate aenatlen.
0ual e«nershlp ana a¸nanlc prepert¸ rl¿hts: tlJs separate the e«nershlp el the lana lren the e«nershlp el
the |ullaln¿s en lt. Jhe lana ls retalnea lere·er ln trust |¸ the tlJ ler the surreunaln¿ cennunlt¸, that
ellectl·el¸ ana pernanentl¸ rene·es the lana lren the narket. ߸ centrast, |ullaln¿s en the tlJ`s lana are
sela te ana e«nea |¸ lanllles, ce-eperatl·e heusln¿ cerperatlens, snall |uslnesses, er nenprellt er¿anlia-
tlens.
leasea lana ana heusln¿ alleraa|lllt¸: Jhe trust`s lana ls ne·er sela te the lnha|ltants, lt ls leasea. Lach tlJ
ae·eleps a resale lernula te keep the heusln¿ alleraa|le e·er the len¿ tern. Jhe aln ls te alllerentlate the
lana «hlch the tlJ retalns ler cennunlt¸ use ln perpetult¸ lren the stlpulatea eçult¸ share an e«ner-
eccupant can recel·e en the sale el the heusln¿ unlts. Jhe tlJ e\erclses thls pe«er threu¿h a pre-enptl·e
rl¿ht te |u¸ «hen heusln¿ unlts are resela. Lach tlJ nalntalns a «altln¿ llst ler heusln¿ ana these lea·ln¿ a
tlJ ha·e a centractual e|ll¿atlen 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 ¿ee¿raphlcal area. ln the l.:.\. lt na¸ |e a
rural te«n er rural ceunt¸, an ur|an alstrlct, er an entlre clt¸.
Jrlpartlte ¿e·ernance: Jhe |eara el a tlJ ls cenpesea el three t¸pes el stakehelaer. \ernall¸ a thlra el |eara
nen|ers are electea representatl·es 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 ser·lce pre·laers, ana
lecal lunaers.
Jhe tlJ cencept ls lerel¿n te the usual «a¸ «e thlnk a|eut prl·ate hene e«nershlp ln \erth \nerlca. ve
thlnk a|eut ¿ettln¿ a ae«n pa¸nent, çualll¸ln¿ ler a nert¿a¿e, |u¸ln¿ a heuse ana the lana unaer lt, settlln¿
ae«n, ana at sene pelnt sellln¿ a¿aln ler a sl¿nlllcantl¸ hl¿her prlce than «hat «e erl¿lnall¸ pala. ve e«n lt ana
«e plan te |enellt lren lt - all el lt, lana lncluaea. :ene el us ha·e learnea te antlclpate the aa·anta¿es that
nl¿ht aerl·e lren pu|llc ln·estnents ln lnlrastructure, transpert, ana anenltles ln the ·lclnlt¸ el eur a|eae. ll
«e ha·e the nene¸ ana the snarts te lecate ln an area ler «hlch such pu|llc ln·estnents 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 rl¿htl¸
|e ternea unearnea eçult¸.¨
ßut thls «a¸ el aeln¿ thln¿s ls lea·ln¿ nere ana nere el eur lelle« cltliens |ehlna. \s the crlsls el
alleraa|lllt¸ ¿re«s, the capaclt¸ el ¿e·ernnents te aeal «lth lt seens te alnlnlsh. lar¿er ana lar¿er ta\pa¸er-
lunaea su|slales are reçulrea te keep unlts el seclal heusln¿ alleraa|le te peer ana neaerate lncene peeple.
tlJs are a strate¿¸ that rene·es lana lren the heusln¿ narket «ltheut alscennectln¿ reslaents lren thelr
lnterest ln e«nln¿, nalntalnln¿, ana lnpre·ln¿ |ullaln¿s. uere ls he« ene el the nest aa·ancea tlJs ln \erth
\nerlca has achle·ea thls.
\ernent ls a rural, neuntalneus state «lth ·er¸ le« lar¿e enple¸ers ana the le«est «a¿es ln \e« Ln¿lana. Man¸
reslaents cennute !-] heurs te «erk each aa¸. Jhe ¿ap |et«een a·era¿e lncenes ana heusln¿ cests ln \ernent
ls ene el the hl¿hest ln the lnltea :tates: +7° el renters ana ]8° el henee«ners pa¸ nere than ]0° el thelr
¿ress lncene en heusln¿.
ßurlln¿ten ls a snall unl·erslt¸ te«n ln the state ana the hene |ase el the thanplaln ueusln¿ Jrust (tuJ)
the lar¿est tlJ ln the l.:.\. ana the llrst te e\pana lts lanahelaln¿s threu¿h partnershlp «lth a nunlclpallt¸. Jhe
J
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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 erl¿lns lle ln the nla-J)80s, alter the llrst 8ea¿an aanlnlstratlen
enaea leaeral ¿e·ernnent pre¿rans te luna alleraa|le heusln¿. \n
e\panaln¿ ae«nte«n ana rlsln¿ enrellnent at ßurlln¿ten`s three celle¿es
pushea heusln¿ prlces threu¿h the reel. Jhe attenpts el ßurlln¿ten
Ma¸er ßernle :anaers ana hls lre¿ressl·e tealltlen te achle·e rent
centrel lallea. Jhe¸ turnea te the lnstltute ler tennunlt¸ Lcenenlcs
«hlch haa |een ae·elepln¿ ana prenetln¿ the tlJ cencept slnce the
earl¸ J)70s. :anaers ana the tealltlen esta|llshea a tennunlt¸ ana
Lcenenlc 0e·elepnent 0lllce at tlt¸ uall ana ln J)8+ are« up a strate¿¸
te create t«e nenprellt er¿anliatlens, the ßurlln¿ten tennunlt¸ lana
Jrust ana lake thanplaln ueusln¿ 0e·elepnent 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¸ enple¸ees` penslen luna. 0·er tlne, the
¿ee¿raphlc terrlter¸, ser·lces, ana lunaln¿ seurces ¿re« te e·erlap ana
the t«e er¿anliatlens ner¿ea te lern the thanplaln ueusln¿ Jrust ln
!00o.
\t present, tuJ has ln lts pertlelle e·er !,000 unlts el pernanentl¸
alleraa|le heusln¿ lnslae ßurlln¿ten clt¸ llnlts ana scatterea acress
three aajacent ceuntles. \ppre\lnatel¸ o0° el the unlts are resale-
restrlctea, e«ner-eccuplea heuses ana cenaenlnluns, the ether +0°
are rental apartnents. :lnce !00J the er¿anliatlen`s stall has ¿re«n lren
leur te e·er 70. tuJ ellers se·eral cenpenents that ln cen|lnatlen can
ser·e te lnpre·e the çuallt¸ ana alleraa|lllt¸ el heusln¿ aranatlcall¸.
J«e , ene ln ßurlln¿ten ana ene ln the
rural te«n el :t. \l|ans, lnte¿rate hene|u¸er eaucatlen «lth ae|t ana
|ua¿etln¿ aa·lce ana hene nalntenance ceurses ler llrst-tlne
hene|u¸ers. 0·er ]00 peeple a ¸ear learn he« te neet the crlterla el
cen·entlenal nert¿a¿e lenaers ana steer clear el preaater¸ lenaers ana
nert¿a¿e |rekers. Jhe aa·lser¸ ser·lce helps heusehelas |rln¿
censuner crealt ana ether ae|t pre|lens unaer centrel.
eller ae«n pa¸nent ¿rants lunaea |¸ lecal,
state, ana leaeral ¿e·ernnent seurces ln aaaltlen te nert¿a¿es at lnterest
rates alnest !° le«er than the a·era¿e. tuJ has «erkea «lth lecal |anks
te ae·elep llnancln¿ packa¿es «lth pa¸nent structures alleraa|le te le«-
lncene heusehelas.
tuJ ne|lllies lts te centrl|ute te a peel el lunas that
ls usea te ce·er eperatln¿ cests. turrentl¸, there are +,000 nen|ers ln a
re¿len «lth a pepulatlen el J00,000. Men|ers lncluae lecal |uslnesses
as «ell as lnal·laual cltliens. :ene jeln «lth a pa¸nent el ;50 er less
(the carpenter¨ rate), ethers nake a lar¿er ln·estnent (the cennunl-
t¸ ae·eleper¨ rate ls ;!50-;500 ana the ·lslenar¸¨ rate ls ;J,000 ana
e·er). Man¸ nen|ers re¿ularl¸ aenate te lurther the Jrust`s «erk. Jhese
¿rassreets lunas are usea te le·era¿e aaaltlenal capltal ¿rants lren the
\ernent ueusln¿ ana tenser·atlen ßeara, the tlt¸ el ßurlln¿ten ueusln¿
0epartnent, ana the leaeral ¿e·ernnent. :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 ae·elepea 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¸ le¿al
aa·lce centre, ana a nultl-unlt |uslness lncu|ater.
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A Double Bottom Line: Taxpayer
Savings – Household Benefits
\nerlcan tlJs use a ·arlet¸ el netheas te purchase real estate at less cest.
Jhe precess ln·el·es censlaera|le tlne ana ellert, |ut tlJs ha·e |een a|le
steaall¸ te acçulre lana ler alleraa|le heusln¿ ana/er te acçulre e\lstln¿
heusln¿ ana nake lt nere alleraa|le e·er tlne. Jhe cen|lnatlen el prl·ate
aenatlens ana pu|llc su|slales ena|les tlJs te le·era¿e ana nalntaln
su|slales at a cest te the pu|llc purse that ls lar le«er than cen·entlenal
appreaches te the su|slaliatlen el le«-lncene heusln¿.
let`s leek llrst at the tuJ uenelana 0rant pre¿ran. 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 nert¿a¿e, ana a resale stlpulatlen accenpllshes t«e thln¿s.
llrst, the çuallt¸ el the heusln¿ alleraa|le te le«-lncene heusehelas
lncreases sl¿nlllcantl¸ ln the here ana ne«. :ecena, the sane heusln¿
renalns alleraa|le te le«-lncene heusehelas ln perpetult¸. Ja|le J she«s
he« the pre¿ran «erks ler a lanll¸ el leur «lth an annual lncene el
l:;]),]50, cenparea te slnllar heusehela «lth a cen·entlenal nert¿a¿e.
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¸ nert¿a¿e entltlenents are slnllar. ue«e·er the
heusehela that çualllles ler the tuJ eptlen |enellts |eth lren a ¿rant el
;!!,000 ana the le«er lnterest rate el +.!5°. Jhls cen|lnatlen el ¿rant
ana le«-lnterest nert¿a¿e ena|les the heusehela te allera a prepert¸ that
ls ;+8,)!o (+!°) nere e\pensl·e ler ·lrtuall¸ the sane nenthl¸ pa¸nent.
Jhls anal¸sls she«s he« the tlJ can stretch the lnpact el a pu|llc
su|sla¸. \nether stua¸ has re·ealea he« thls neael can achle·e aranatlc
sa·ln¿s ler ta\pa¸ers. Jhe cests el a tlJ-lunaea unlt el heusln¿ «ere
cenparea «lth these el a traaltlenal ¿e·ernnent su|sla¸ pre¿ran. Ja|le !
(see ne\t pa¿e) she«s he« cen·entlenal ana tlJ su|sla¸ perlernances
cenpare «hen the sane prepert¸ ls resela ll·e tlnes e·er ]0 ¸ears.
ln the e\anple, a ;50,000 pu|llc su|sla¸, «hen pretectea |¸ the lana
trust ana the tlJ resale lernula, preser·es a tlJ hene`s alleraa|lllt¸ e·er
]0 ¸ears e·en ll the hene ls resela e·er¸ se·en ¸ears te a ne« lanll¸. ln
centrast, unaer the cen·entlenal alleraa|le heusln¿ su|sla¸ pre¿ran, the
pu|llc su|sla¸ ls repala each tlne the hene resells ana the seller ls
alle«ea te claln all the capltal ¿alns. \s a result, a ¿reater pu|llc su|sla¸ ls
2011 nov 11 3
reçulrea alter e·er¸ 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 e«ner, the ¿e·ernnent «eula ha·e te
ln·est o0° nere, ler a tetal el ;80,000, te keep the heuse alleraa|le. Jhe
pu|llc su|sla¸ just keeps ¿eln¿ up alter e·er¸ sale: ;J]!,000 ln \ear J+,
;!Jo,000 ln \ear !J, ana ;]+!,000 ln \ear !8.
the ta\pa¸er ;8!0,000. Jhe results aenenstrate he« lnpertant lt ls te take
the lana pernanentl¸ eut el the narket ana te lnpese pernanent centrels
e·er the resale prlce el the heusln¿ ln eraer te assure len¿-tern alleraa|lll-
t¸. lt alse she«s «hat tlJs alene can accenpllsh, nanel¸, the capture el an¸
pu|llc su|sla¸ er lana ¿llt «lthln the lana trust |alance sheet, thus
preser·ln¿ ler perpetual cennunlt¸ |enellt a pu|llc er seclal ln·estnent ln
lana.
Jhe alleraa|le heusln¿ crlsls ln the l.:. has acceleratea the ae·elep-
nent el tlJs. Jhe¸ are lncreasln¿ ln nun|er «hene·er ana «here·er real
estate narkets are ·er¸ het. (:ee slae|ar, lr·lne tennunlt¸ lana Jrust,¨
ne\t pa¿e.) Jhreu¿h the uenee«nershlp lnltlatl·e, the \ernent ueusln¿
ana tenser·atlen ßeara has suppertea the ae·elepnent el ll·e nere tlJs
threu¿heut the state, each eperatln¿ ln an area «lth a pepulatlen el a|eut
J00,000. \cress the l.:. there are ne« e·er !50 tlJs. lnterest lren lecal
¿e·ernnent, especlall¸ ln the «ake el the crealt crunch, ls ¿re«ln¿.
llnkln¿ lana, alleraa|lllt¸, ana a trust neael el tenure ls a re·elutlen ln
the nakln¿.
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Jhere are ne« appre\lnatel¸ !50 cennunlt¸ lana trusts ln the l:\, ana llea¿lln¿
ne·enents ln Ln¿lana, \ustralla, ana ßel¿lun.
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Maura telllns, ßet«een a 8eck ana a uara llace: ueusln¿ ana va¿es ln \ernent¨
(\ernent ueusln¿ llnance \¿enc¸, \prll !0JJ), accessea !5 0cte|er !0JJ
<http://«««.·hla.er¿/aecunents/heusln¿-«a¿es-!0JJ.pal>.
0lane 0lacen, 8lchara tlarke, ana :ll·la 0ulnaraes,
(teal·llle, lelcestershlre:
ßullaln¿ ana :eclal ueusln¿ leunaatlen, !005).
:tall,¨ , accessea !5 0cte|er !0JJ
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(tan|rla¿e, Mass.: llnceln lnstltute el lana
lellc¸, [une !008), pp. 8-), accessea !5 0cte|er !0JJ
<http://«««.lhtn·.er¿/l0l/tlt¸-tlJlellc¸8epert.pal>.
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anal¸sls el tlJs ln three heusln¿ narkets¨ (ternell lnl·erslt¸, Ma¸ !0JJ), p. J5 ll.,
accessea ) \e·en|er !0JJ
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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 ll¿ure eut «hlch s¸sten ls nere
|enellclal ana elllclent. Jhe tlJ neael cests ta\pa¸ers ;50,000. Je achle·e
the sane alleraa|lllt¸ e|jectl·e, the cen·entlenal 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 ICLT’s 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. Doria’s 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
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