Could you afford a home in the Upper Valley?

SHARE Community Land TrustA Program of Upper Valley MEND

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Keeping homes affordable for multiple generationsSHARECommunity Land Trust

Our OrientationWhat Is Upper Valley MEND?What is a Community Land Trust?SHARE Program DetailsBenefits of SHARE CLT HomeownershipHow do I apply?

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I. What is Upper Valley MEND?

MEND programs:

Community CupboardFree Health ClinicJubilee Global GiftsCornerstone CommunitySHARE CLT

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Did you know?There are 2 SHARE neighborhoodsalready, and a 3rd is in development.

SHARE has already provided over 20families with the opportunity to owntheir own home.

II. What is a Community Land Trust?A community land trust (CLT) is a nonprofit that holds land in trust which benefits the surrounding community by ensuring the long-term availability of affordable homeownership. Organization

Operation

OwnershipThree distinct aspects of CLTs:

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Organization:

The Share Committeee

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Operation: Why is it affordable?

Land Speculation is taken out of the equation

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(cont.) Operation: MEND receives grants and funding from:Washington State Housing Trust Fund (HTF)HUDs Self Help Opportunity Program (SHOP)Federal Home Loan BankThe Icicle Fund

With this help, SHARE is able to offer silent second mortgages to homebuyers.

Many homebuyers work with a government lender who may provide mortgages with subsidized payments.

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Ownership

Homeowner owns the house and its improvementsUpper Valley MEND owns the land

Ground Lease

Ground LeaseGround LeaseIt includes :The duration of the lease ;The amount of the Ground Lease Fee ;The homeowners responsibilities;The resale formula.

Legal document between MEND and the homeowner.Homeowner owns the house and its improvementsUpper Valley MEND owns the land

Fees

$80-95: Lease Fee el pago de arrendamientoStewardship and Administration Neighborhood Fund $50: Replacement Reserves la reserva para repuestosLong-term home maintenance

*This money stays with the house, even after it is sold to the next family. 12

The Resale FormulaPurchasing a CLT house is a decision to buy a long-term home; it is not a quick-turn real estate investment.

At resale, SHARE calculates appreciation using Area Median Income.

III. SHARE - Program Details

Why Leavenworth Needs Affordable Homes

Local incomes are not increasing as quickly as housing costs.

LeavenworthHousing PricesPurchasing PowerOf Average Family in LeavenworthAffordability Gap Grows

Living in a CLT Neighborhood

Homeowner owns the house. Upper Valley MEND owns the land. Ground LeaseNeighbors own their houses too. Neighbors share common area. CC&Rs

CC&Rs: Covenants, Conditions, and Restrictions

CC&R regulations clarify details of:ParkingHomeowner MeetingsPetsNoise

HOME PRICESRequired fixed rate loansLow foreclosure rateONGOING SUPPORTIncome limit at time of purchase

IV. Benefits of SHARE CLT Homeownership

Paying rent vs. Building Equity

Tax benefits

Maintenance and Repairs

Mobility vs. Stability

Having landlords vs. Being homeownersWhat is Better for My Family?

1. Renting VS. Owning Rent RentUtilitiesRenters InsuranceYard Maintenance

Own Mortgage Payment (Principal, Interest, Taxes, Insurance)Ground Lease FeeReplacement ReservesUtilitiesYard Maintenance and home Repairs

VS.

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V. How do I Apply? InquiryReferralAttend Orientation; receive applicationTurn in completed application and documents, pay $60 application fee..Interview with SHARE StaffIf eligible, join waitlist.

EligibilityThe applicant is/has been a resident or employee in the Cascade School District area;The applicant is legal resident of the U.S;Family income is at or below 80% of Area Median Income for family size;Family assets are lower than $15,000 at closing.Eligible for SHARE if:

Area Median IncomeHousehold Size 123456780%$32,400$37,000$41,650$46,250$49,950$53,650$57,350

Total household income (everyone in your home regardless of if they will be on the mortgage) must be at or below 80% of the area median income, adjusted for household size.

Qualifying Your total Debt Ratio is below 45%;The family has a high enough income The applicant has good credit.

Qualify for a mortgage if:

Debt RatioTo be eligible for a SHARE CLT house, your total debt cannot be more than 45% of your total income. Debt= car loans, student loans, credit card debt, and any housing costs from buying and moving into a SHARE house. /Income X 0.45 = Maximum Debt for Eligibility

Meadowlark is SHAREs third CLT neighborhood, and will provide 30 new permanently affordable houses to Leavenworth.The neighborhood will be located behind the high school, between Titus Road and Chumstick Highway. Meadowlark

More Information

House Sizes 3 and 4 bedroom 1,300-1,600 square feet

Schedule Spring 2014: Orientations, Build Waitlist, Home ShowFall 2014: Construction beginsBuild 15 houses per year for 3 years

Questions?SHARE CLTThanks for reviewing this orientation!

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