bring workers home - · 2012. 10. 1. · portfolio 2 home-ownership centers 3-county home...

BRING WORKERS HOME

2012 Workforce Housing Forum

National Association of Realtors

October 1011 2012

Chicago IL

Shared Equity Homeownership

Community Land Trust Model

WORKFORCE HOUSING

IN ACTION

Community Land Trust

Membership Organization

Elected Board

Residents elect their own seats

Founded 1984

$ 250 million in assets

$ 9 million operating budget

$ 90 million in annual development

PRINCIPAL ACTIVITIES

bull Homeownership Promotion and Preservation lt100 MI

(mostlt80)

bull Multi Family Housing and Property Management

bull lt80 MI (mostlt60)

512 homes in

shared equity

homeownership

portfolio

2 Home-

ownership

centers

3-County Home

rehabilitation

Program

1630 apartments

$15000000 in gross annual rent

High Cost Market

Smart growth

Mixed use

Multi-family Housing Cooperatives

Nonprofit Office Space amp Community Facilities


Public Partners

Private Partners

Credit Unions Opportunities NEFCU

VSECU NCFCUhellip

Shared-Equity CHT

20 CHT grant Ground leasecovenant

100 Equity

Capital improvement

25 market

How a Champlain

Housing Trust Purchase

and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant

Median Price of CHT Resales

ldquoDuring the 1999-2006

real estate boom in

particular when the

median sales price of

owner-occupied

homes in the Burlington

MSA increased by 85

the median price of

houses and condomin-

iums reselling through

CHT increased by only

35rdquo

Net Equity Gains for CHT Homeowners

Reselling after 5 frac12 years

the average CHT

homeowner got back

hisher initial investment

and walked away with a

wealth gain of $12000 Avg annualized rate of

return on the homeownerrsquos

initial investment 254

IRR

What Kind of Housing Was Secured by CHT Homeowners After Selling a CHT Home

00

25

50

75

100

125

150

175

200

225

250

275

300

325

Seriously Delinquent In Foreclosure Process

162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s

NCLTN loans MBA prime loans MBA subprime loans

End Q4 2009 Percentage of Mortgages Seriously Delinquent amp

In Foreclosure Process

Success of first-time

homeowners (Herbert and Belsky 2008)

50

Enhancing Residential Security


homeowners (Reid 2004)

47

Success of CHTrsquos first-

time homeowners

91

Financial Sustainability

Subsidy is retained and recycled Subsidy grows with value of

property Cost one fifth of Conventional

program

Champlain Housing Trust

UN World Habitat Award July 2008

Community Land Trusts in the

USA

CLT Resource Center Burlington Associates in Community Development LLC

wwwburlingtonassociatescom

National CLT Network

wwwcltnetworkorg


wwwchamplainhousingtrustorg


Community Land Trust Model

WORKFORCE HOUSING

IN ACTION



Elected Board


Founded 1984






(mostlt80)



512 homes in

shared equity

homeownership

portfolio

2 Home-

ownership

centers

3-County Home

rehabilitation

Program

1630 apartments


High Cost Market

Smart growth

Mixed use




Public Partners

Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg





Elected Board


Founded 1984






(mostlt80)



512 homes in

shared equity

homeownership

portfolio

2 Home-

ownership

centers

3-County Home

rehabilitation

Program

1630 apartments


High Cost Market

Smart growth

Mixed use




Public Partners

Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg








(mostlt80)



512 homes in

shared equity

homeownership

portfolio

2 Home-

ownership

centers

3-County Home

rehabilitation

Program

1630 apartments


High Cost Market

Smart growth

Mixed use




Public Partners

Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg



512 homes in

shared equity

homeownership

portfolio

2 Home-

ownership

centers

3-County Home

rehabilitation

Program

1630 apartments


High Cost Market

Smart growth

Mixed use




Public Partners

Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg



1630 apartments


High Cost Market

Smart growth

Mixed use




Public Partners

Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg



High Cost Market

Smart growth

Mixed use




Public Partners

Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg



Smart growth

Mixed use




Public Partners

Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg






Public Partners

Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg



Private Partners


VSECU NCFCUhellip

Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg



Shared-Equity CHT


100 Equity

Capital improvement

25 market

How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg



How a Champlain


and Resale Work

First

homebuyer

buys home

for

$200000

with a

$160000

mortgage

$40000

CHT grant

She lives there

for seven years

and decides to

sell The home

appraises for

$260000

making the total

appreciation

$60000 Her

share is 25 or

$15000

CHT buys the

home from

her for

$175000

(original

mortgage

plus her

share of the

appreciation)

The seller

gets

$15000

(25 of the

appreciation)

All of her

mortgage pay

down ndash to be

simple letrsquos

say $10000

For a total of

$25000 in

proceeds

CHT takes a

stewardship fee

(6 or $15000 in

this example) and

sells the home to

a new owner for

its appraised

value $260000

with a

$190000

mortgage

$70000 grant



real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg





real estate boom in

particular when the


owner-occupied


MSA increased by 85

the median price of




35rdquo



the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg





the average CHT

homeowner got back






IRR


00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg




00

25

50

75

100

125

150

175

200

225

250

275

300

325


162 056

701

331

3056

1558

Mo

rtg

ag

e L

oan

s






50




47


time homeowners

91




program




USA




wwwcltnetworkorg





50




47


time homeowners

91




program




USA




wwwcltnetworkorg






program




USA




wwwcltnetworkorg






USA




wwwcltnetworkorg






wwwcltnetworkorg



bring workers home - · 2012. 10. 1. · portfolio 2 home-ownership centers 3-county home...

Documents