DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Ver?nica R. Soto, AICP, Neighborhood and Housing Services Department Director
COUNCIL DISTRICTS IMPACTED: City wide
SUBJECT: Sale-leaseback and Community Land Trust pilot program
SUMMARY:
Discussion of sale-leaseback program and/or community land trust pilot program for residential homeowners as requested by Councilmember Peleaz
BACKGROUND INFORMATION:
A Council Consideration Request (CCR) was sponsored by Councilmember Pelaez on June 11, 2019 requesting a discussion and review of a sale-leaseback program and/or community land trust pilot program for residential homeowners.
ISSUE:
On June 11, 2019 Councilmember Pelaez submitted a memo requesting a discussion and review of a sale-leaseback program and/or community land trust pilot program for residential homeowners. The purpose of both programs would be to provide long lasting affordability for single family households, stabilize neighborhoods, and prevent future displacement. The CCR requested a review of state law conformance, possible implementation partners and funding strategies. Other considerations for the pilot program include participation in financial literacy and/or jobs skills training.
Community Land Trusts (CLT)
CLTs are a policy tool that separates the ownership of land from structure (most often for single family homes.) This separation allows the home to remain affordable by removing it from the speculative market, reducing purchasing costs and tax liability.
A CLT homebuyer enjoys a significantly reduced mortgage and annual property taxes because they purchase only the home and lease the land from the CLT. The land is owned by the CLT, a non-profit entity that stewards the land and manages the long-term leases held by each homeowner. By state statue, these leases are 99 years and renew with each buyer, ensuring perpetual affordability. If and when a CLT homeowner chooses to sell, the selling price is capped to ens...
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