BRING WORKERS HOME
National Association of Realtorsand
National Housing ConferenceBoston MA
July 28 2011
Regional Forum on Workforce Housing
Shared Equity HomeownershipCommunity Land Trust Model
WORKFORCE HOUSING IN ACTION
Community Land TrustMembership OrganizationElected BoardResidents elect their own seats
2010 Community Land Trusts in the USA
$ 220 million in assets$ 5 million operating budget$ 40 million in annual development
1,500 apartments$18,000,000 in gross annual rent
High Cost Market
Smart growth:Smart growth:Mixed useMixed use
Multi-family Housing Cooperatives
Nonprofit Office Space & Community Facilities Nonprofit Office Space & Community Facilities
Shared Equity Homeownership
500 homes in shared equity homeownership portfolio
2 Home-ownership centers
3-County Home rehabilitation Program
Shared Equity @ CHT
100% MI or belowHomebuyer EdPrime mortgage
Buyer InitiatedNew ConstructionResales
SharedShared--Equity @ CHTEquity @ CHT
20% CHT grant20% CHT grantGround lease/covenantGround lease/covenant
100% Equity100% EquityCapital improvementCapital improvement
25% market25% market
Program Evaluation 2006Program Evaluation 2006
Expanding Access to Homeownership
• Over CHT’s 25-year history, for all 629 households:
100% earned less than 100% of median income
82% earned less than 80% of median
Median Price of CHT Resales
“During the 1999-2006 real estate boom, in particular, when the median sales price of owner-occupiedhomes in the Burlington MSA increased by 85%, the median price of houses and condomin-iums reselling through CHT increased by only 35%.”
Net Equity Gains for CHT Homeowners
Reselling after 5 ½ years, the average CHT homeowner got back his/her initial investment and walked away with a wealth gain of $12,000Avg. annualized rate of return on the homeowner’s initial investment: 25.4%IRR
What Kind of Housing Was Secured by CHT Homeowners After Selling a CHT Home?
Enhancing Residential Security
• How well has CHT performed in protecting its portfolio of owner-occupied housing?
• How well has CHT performed in preventing foreclosures?
• How well has CHT performed in helping low-income households succeed at homeownership?
End Q4 2009: Percentage of Mortgages Seriously Delinquent & In Foreclosure Process
National Foreclosure RateDecember 2008
2.97%National CLT Foreclosure Rate
December 20080.5%
CHT Foreclosure RateDecember 2008
0.2%
Enhancing Residential Security
25-year total0.1%
Success of first-time homeowners
(Herbert and Belsky, 2008)
50%
Enhancing Residential Security
Success of first-time homeowners
(Reid, 2004)
47%
Success of CHT’s first-time homeowners
91%
Financial Sustainability
Subsidy is retained and recycledSubsidy grows with value of
property357 Households servedAverage investment per HH:
$6,085Cost one fifth of Conventional
program
ChamplainChamplain Housing Housing TrustTrust
UN World Habitat AwardJuly 2008
CLT Resource Center Burlington Associates in Community Development LLC
www.burlingtonassociates.comwww.burlingtonassociates.com
National CLT Network www.cltnetwork.orgwww.cltnetwork.org
Champlain Housing Trustwww.champlainhousingtrust.orgwww.champlainhousingtrust.org
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