Contract for Deed Homes Minnesota

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					Community Land Trusts

  Annual Affordable Housing Conference
            January 28, 2009
    Community Land Trusts (CLTs)
        in the United States
• Over 240 Community Land Trusts Nationally
• Originated in the South
• Large growth, more established in NE
• Growing presence in NW and SW
• Regional Coalitions in NW, SE, and MN
• Vary greatly in scope and role in community
• Early as a movement, then affordable housing,
  more recently as a municipal financing mechanism
             CLTs in Minnesota

• 10 CLTs in Minnesota
• Over 650 CLT homeowners in MN
• Urban, Suburban, and Rural
• Great diversity in how each CLT serves their
• Recently incorporated, gained 501c3 status as the
  MN CLT Coalition
• Hired Executive Director in Fall 2008
• Focused on policy, best practices, data collection,
  furthering collective missions
    City of Lakes Community Land Trust

•   City of Minneapolis
•   Incorporated in 2002
•   First Household assisted in 2004
•   Staff of 2.5 FTEs
•   84 CLT homeowners, 5 resales to date
•   Single Family Homes, Townhomes, and Condos
•   Not a developer
•   25% Appraisal-Based Resale Formula
    CLCLT Programs in Mpls.

• Developer Partnerships
  – New Construction
  – Rehab
  – Foreclosure Related Rehabs
• Homebuyer Initiated Program (HIP)
  – Increasingly Foreclosed Homes
    CLCLT Applications in Mpls.

•   Habitat for Humanity Partnership
•   Project: Reclaim - Contract for Deed Program
•   SF Homes/Townhomes – Ground Lease
•   Condos – Deed Restriction
•   Mixed-use developments
•   Possible Duplexes, Rental, Commercial
    Applications in the future
Single Family Homes
Homebuyer Initiated Program (HIP)
     Single Family Homes
Townhomes and Condos
  Neighborhood Stabilization
   Program (NSP) Activities
• $58 Million to Minnesota
• Over $3 Million to Hennepin County
• $5.6 Million to Minneapolis (another $5.6 million
  from State level directed to Minneapolis)

• $450,000 for Buyer Initiated Program ($150,000
  pre-directed from NSP funds)
• $550,000 for Partner CDC Lease/Purchase (Contract
  for Deed) program “Project: Reclaim”

• City of Minneapolis looking to CLCLT for assistance,
  especially for 25% below 50% MMI solutions
            CLCLT Resales
5 CLCLT resales and another 2 for resale

•   2 homeowners moved out of state
•   1 growth in family/income
•   2 deceased
•   1 wasn’t a good fit
•   1 lateral move to HIP home
    CLCLT Homebuyer Process
        Required of every CLCLT buyer

•   Homebuyer Education Course (9 hours)
•   CLCLT Orientation (1 hour)
•   CLCLT application
•   Pre-approval from CLCLT approved lender
•   Attorney review (paid for by CLCLT)
•   Post-purchase events/trainings
              CLCLT Buyer Info Packet Available
Considerations in Starting a CLT

• Understanding scope, need, and financial
  support from a community
• The cost of starting and maintaining a CLT
• Public (municipal/government) support
• Lender, realtor, business support
• Ability to demonstrate a ROI to the
• Housing is the easy part….
                    Contact Info

Jeff Washburne
Director, City of Lakes CLT
612-721-7556 x17

Burlington Associates in Community Development

National CLT Network

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