Chapter Four:Affordable Housing

Uniting the “I” and “We”: Affordable Housing in Perpetuity

Presentation by: Ariel Verhoeks

Community Land TrustSummaryKey FeaturesChamplain Housing Trust (CHT)

The Mutual Homeownership ModelMutual Home Ownership Housing Society (MHOS)Affordability

Transition Factors Resilience Reflections Questions

Introduction

Market failures in housing

Create a stock of permanent affordable housing

Separates two cost elementsa) market price of the landb) price of the house itself

Community Land TrustSummary

1. Non-profit, tax-exempt corporations

2. Very flexible

3. Allow dual ownership and dynamic property rights

4. Make leased land and housing affordable

5. Allow open and place-based membership

6. Has tripartite governance

Community Land TrustKey Features

Over 2,000 units of permanently affordable housing

Improving quality and affordability of housing:

a) homeownership centresb) financing packagesc) pool of funds to cover operating costsd) developed a day center, nursery

facility, non-profit offices

Community Land TrustChamplain Housing Trust (CHT)

New model result of innovative affordable housing solutionsa) community land trusts (CLT)b) tenant cooperativesc) cooperative land societies

Tenants share a single mortgage package

Equity Shares: Deposits paid upfront become shares Those who pay higher lease charges finance more equity shares Equity share value is linked to average earnings Lower/middle income members can earn limited equity returns

too

Mutual Homeownership Model Mutual Home Ownership Housing Society (MHOS)

1. Lease payments are set ratio (35%) of net household

income

2. Lower-income members can acquire equity shares

3. Members can buy more shares as their income rises

4. Transaction costs are reduced

5. Borrowing costs are cheaper over the longer term

6. Reduced risk and maintains affordability of the home

Mutual Homeownership ModelAffordability

Restoring land to the commons

Deep cultural attachment to traditional private property and private profit

Community benefits not captured in calculations1. social economic factors are social determinants of health2. stable & affordable housing frees up income to purchase healthy food3. affordable housing enables increased participation in community life and fosters sense of belonging

Allows people to live near where they work

Transition Factors

2008 Housing Bubble Lack of resilience Lack of transparency

Land trusts & cooperative approaches to improving affordable housing preserve income diversity Potentially reduces the ecological impacts of a

community

Resilience Reflections

Questions