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Binghampton

Community Land Trust

Seminar

�Dominic Moulden

Kate Kananura

November 28, 2023

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Binghampton

Community Land Trust (BCLT)

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  • History
  • Properties
  • Partners
  • BCLT Board

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Binghampton Neighborhood

  • Owner occupied homes 2,799 46.0%
  • Renter occupied homes 3,293 54.1%
  • Median household income for Memphis city $41,864
  • Median household income for Binghampton $24,099

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2020 American Community Survey - U.S. Census Bureau

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How a Community Land Trust Works

    • A family or individual purchases a house that sits on land owned by the community land trust.
    • The purchase price is more affordable because the homeowner is only buying the house, not the land.
    • The homeowners lease the land from the community land trust in a long-term (often 99-year), renewable lease.
    • The homeowners agree to sell the home at a restricted price to keep it affordable in perpetuity, but they also realize appreciation from improvements on the home

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Why a Community Land Trust?

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Reduce delinquency and foreclosure rates

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Keep

    • Keeps home prices from escalating out of reach for low- and moderate-income buyers

Provide

    • Provides access to affordable homeownership for underserved communities

Help

    • Helps to build community and generational resources for underserved communities through community control of housing and land 

Reduce

Give

    • Gives neighborhood residents control over development

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CLT Governance: Tripartite Board

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CLT Governance : Role of The Board

  • Property acquisition
  • Selection of homeowners
  • CLT stewardship
  • Fundraising

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�����CLT Stewardship��

  • Property & asset management
  • Community building & resident engagement
  • Homeowner assistance & compliance
  • Maintenance of Ground Lease

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CLT Ground Lease

A ground lease is an agreement between a community land trust and a homeowner.

  • Homeowner agrees to enter into this Lease to obtain the benefits of homeownership and to further the charitable purposes of the CLT.
  • Homeowner accepts the Lease terms, including the marketing and resale price of the property
  • Homeowner and CLT agree that the terms of this Lease further their shared goals and through a succession of owners.

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Stewardship: Resale of CLT Improvement

  • Initial subsidy is used to bridge the affordability gap of CLT

homebuyer.

  • By signing the ground lease, homebuyer:
    • agrees to share the initial affordability subsidy with future homebuyers.
    • agrees to a resale formula that will be used to determine the price of the improvement in the future.
  • Preserves affordability subsidies for the benefit of future

homebuyers.

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Stewardship: Resale Formula

Establishes an upper limit on the price for which a CLT home or a property may be resold.

Types of Resale Formulas:

• Fixed Rate

• Index Based

• Appraisal Based

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Do CLT Homebuyers Build Equity?

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CLT major activities �

Land/Property Acquisition

Construction

Subsidies

Stewardship

Daily Operations

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Sources of Funding & Other Resources

  • Grants
  • Gifts & donations
  • Loans
  • Local, state & federal funds
  • Sweat equity

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CLT Partnerships & Sustainability

CDFIs & CDCs

  • Providing loans, grants & TA directly to CLTs
  • Leveraging the CDC infrastructure to support CLTs- Move properties to CLTs
  • Policy mobilization; Supporting public policies that create new pipelines of properties and resources

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CLT Coalition and Collaboration

  • Build citywide support for all CLTs in Memphis
  • Coordinate resource sharing to support all CLTs
  • Organize to influence public policy and public laws to benefit CLTs
  • Plan for sustainability of CLTs in Memphis

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Q & A