1. SHARE Community Land Trust A Program of Upper Valley MEND

2. SHARE Community Land TrustKEEPING HOMES AFFORDABLE FOR MULTIPLE GENERATIONS 3. Our Orientation I. What Is Upper Valley MEND?II. What is a Community Land Trust? III. SHARE Program Details IV. Benefits of SHARE CLTHomeownership V. How do I apply? 4. I. What is Upper Valley MEND?MEND programs: 1. 2. 3. 4. 5.Community Cupboard Free Health Clinic Jubilee Global Gifts Cornerstone Community SHARE CLT 5. Did you know? There are 2 SHARE neighborhoods already, and a 3rd is in development.Upper Valley Free Clinic SHARE Community Land Trust Upper Valley MENDSHARE has already provided over 20 families with the opportunity to own their own home.Jubilee Global GiftsCommunity Cupboard Cornerstone Adult Family HomeAlpine Heights (2001)Aldea Village (2005)(In development) 6. II. What is a Community Land Trust? A community land trust (CLT) is a nonprofit that holds land in trust which benefits the surrounding community by ensuring the long-term availability of affordable homeownership.Three distinct aspects of CLTs: Organization Operation Ownership 7. Organization: Alexandra, Laurie, RocioHomeownersThe SHARE CommitteeCommunity Members Momi, HansEStaff & Board Members Kelly, AmeriCorps Volunteer 8. Operation: Why is it affordable?Land Speculation is taken out of the equation 9. (cont.) Operation: MEND receives grants and funding from: Washington State Housing Trust Fund (HTF) HUDs Self Help Opportunity Program (SHOP) Federal Home Loan Bank The Icicle FundWith this help, SHARE is able to offer silent second mortgages to homebuyers. Many homebuyers work with a government lender who may provide mortgages with subsidized payments. 10. OwnershipHomeowner owns the house and its improvementsGround LeaseUpper Valley MEND owns the land 11. Ground Lease Legal document between MEND and the homeowner.It includes : The duration of the lease ;The amount of the Ground Lease Fee ;Homeowner owns the house and its improvementsThe homeowners responsibilities;Ground LeaseThe resale formula. Upper Valley MEND owns the land 12. Fees$80-95: Lease Fee el pago de arrendamiento Stewardship and Administration Neighborhood Fund$50: Replacement Reserves la reserva para repuestos Long-term home maintenance *This money stays with the house, even after it is sold to the next family. 13. The Resale Formula Home and Land Value on Open MarketCLT Price240000 $220,000220000Purchasing a CLT house is a decision to buy a long-term home; it is not a quick-turn real estate investment.200000 180000$175,000$162,422160000 140000$145,020120000 100000Initial SaleResaleAt resale, SHARE calculates appreciation using Area Median Income. 14. III. SHARE - PROGRAM DETAILS 15. Why Leavenworth Needs Affordable HomesLeavenworth Housing PricesAffordability Gap GrowsLocal incomes are not increasing as quickly as housing costs.Purchasing Power Of Average Family in Leavenworth 16. Living in a CLT NeighborhoodNeighbors own their houses too.CC&RsNeighbors share common area.Homeowner owns the house.Ground LeaseUpper Valley MEND owns the land. 17. CC&Rs: Covenants, Conditions, and RestrictionsCC&R regulations clarify details of: Parking Homeowner Meetings Pets Noise 18. Upper Valley MEND Board SHARE Committee CC&R Committee Homeowner Meetings 19. IV. Benefits of SHARE CLT HomeownershipHOME PRICESREQUIRED FIXED RATE LOANSLOW FORECLOSURE RATEONGOING SUPPORTINCOME LIMIT AT TIME OF PURCHASE 20. What is Better for My Family? PAYING RENT VS. BUILDING EQUITY TAX BENEFITS MAINTENANCE AND REPAIRS MOBILITY VS. STABILITY HAVING LANDLORDS VS. BEING HOMEOWNERS 21. 1. Renting VS. OwningRent RentOwn VS.Mortgage Payment (Principal, Interest,UtilitiesTaxes, Insurance)Renters InsuranceGround Lease FeeYard MaintenanceReplacement Reserves Utilities Yard Maintenance and home Repairs 22. InquiryReferralAttend Orientation; receive applicationV. How do I Apply?Turn in completed application and documents, pay $60 application fee. .Interview with SHARE StaffIf eligible, join waitlist. 23. Eligibility Eligible for SHARE if: The applicant is/has been a resident or employee inthe Cascade School District area; The applicant is legal resident of the U.S; Family income is at or below 80% of Area Median Income for family size; Family assets are lower than $15,000 at closing. 24. Area Median IncomeHousehold Size1280%$32,400$37,00034567$41,650 $46,250 $49,950 $53,650 $57,350Total household income (everyone in your home regardless of if they will be on the mortgage) must be at or below 80% of the area median income, adjusted for household size. 25. Qualifying Qualify for a mortgage if: Your total Debt Ratio is below 45%; The family has a high enough income The applicant has good credit. 26. Debt Ratio To be eligible for a SHARE CLT house, your total debt cannot be more than 45% of your total income.Debt= car loans, student loans, credit card debt, and any housing costs from buying and moving into a SHARE house. /Income X 0.45 = Maximum Debt for Eligibility 27. Meadowlark is SHAREs third CLT neighborhood, and will provide 30 new permanently affordable houses to Leavenworth.The neighborhood will be located behind the high school, between Titus Road and Chumstick Highway.Meadowlark 28. More InformationHouse Sizes 3 and 4 bedroom 1,300-1,600 square feet Schedule Spring 2014: Orientations, Build Waitlist, Home Show Fall 2014: Construction begins Build 15 houses per year for 3 years 29. SHARE CLT Questions?Thanks for reviewing this orientation!