Florida’s affordability gap continues to expand with the price of housing growing at a faster rate than incomes. At the same time, the cost to produce housing continues to rise and expiring affordability periods for most funding sources leads to the potential loss of affordable units that will be more difficult to replace. Community land trusts and other shared equity models are tools to preserve investments and create a permanent stock of affordable housing. Below highlights the work of the Florida Community Land Trust Institute (Florida CLT Institute), a program of the Florida Housing Coalition, to promote permanent affordability throughout our state. Not sure what a community land trust is? Click below to read our FAQs.
The Florida Community Land Trust Institute (Florida CLT Institute), is a program of the Florida Housing Coalition, which began in January 2000. A community land trust strategy must be specifically designed to respond to local market conditions, identified housing needs, and available funding. The Florida CLT Institute provides training technical assistance, and consulting services to develop an effective strategy for your location. The Florida CLT Institute further advocates for the inclusion of permanent affordability preferences or requirements in local affordable housing programs and regulations, such as requirements for surplus land and inclusionary housing.
The Florida CLT Institute assists government and nonprofit entities with:
- Assessing whether a community land trust is appropriate for your community and if so, which model makes the most sense for your community;
- Understanding the terms of the ground lease and options for resale provisions;
- Start up for the nonprofit community land trust;
- Capacity building for the nonprofit community land trust;
- All manner of real property development and financing issues.
As interest in community land trusts and other shared equity models grows, the Florida CLT Institute focuses on promoting industry standards and best practices amongst all CLTs in Florida to bring them to scale. Towards this goal, the Florida CLT Institute is working in partnership with Fannie Mae and Freddie Mac to perform program reviews of CLTs and establish a Community Land Trust Training and Certification program.
CLT Homebuyer Education Module
With the support of Wells Fargo Bank, the Florida CLT Institute developed the Community Land Trust Homebuyer Education Module. The module is intended to supplement the general homebuyer education required of most first-time homebuyers by helping potential CLT buyers understand their responsibilities as a CLT homeowner and understand the difference between fee simple and CLT homeownership. The module also provides guidance on how a CLT owner can transition to fee simple homeownership and demonstrates how to calculate the resale price of their home as they contemplate the next step in their homeownership journey. Click below to download the Teacher’s edition. The Homebuyer’s edition of the module is coming soon.
Model CLT Down Payment Assistance Strategy for SHIP Communities
The 67 counties and 52 entitlement cities that are eligible to receive funding under the State Housing Initiatives Partnership program administered by Florida Housing Finance Corporation, are required to adopt a Local Housing Assistance Plan (LHAP) that includes strategies to address the housing needs of Florida’s low- and moderate-income population. The most common strategy adopted by SHIP communities is Purchase Assistance which includes down payment assistance (DPA) for qualified homebuyers. The Florida CLT Institute has drafted add-on language that local governments can use as a model to amend the current purchase assistance strategies in their LHAPs. This add-on language will maximize the use of the SHIP funds by ensuring that the homes acquired under the CLT strategy remain permanently affordable. Read more about the subsidy retention approach to preserving affordability below.
Sample Legal Documents for SHIP Purchase Assistance Programs with a CLT Strategy
Implementing a CLT DPA Strategy requires legal documentation that is unique to the Community Land Trust model. Coupled with the Model CLT DPA Strategy, the Florida CLT Institute has drafted several sample legal documents to aid in implementation. For example, traditional legal documents may require the CLT homeowner to mortgage away the underlying land in fee simple although the homeowner only has a leasehold interest to encumber. The model legal documents include a sample mortgage and note that accurately reflects the ownership interests involved as well as the terms stated in the model CLT DPA Strategy. Additionally, the Florida CLT Institute has drafted an approval form for local governments to attest to a CLT’s ability to act as a successful steward and a checklist of language to consider when devising CLT DPA legal documents. Access the sample legal documents and checklist below.
|CLT Approval Form||Sample SHIP Second Mortgage for CLTs|
|CLT Mortgage Not SHIP Consideration||Sample Promissory Note SHIP CLT Program|
Updated and Revised Florida Community Land Trust Primer
With the support of BankUnited and Florida Community Bank, the Florida Community Land Trust Institute published its revised and updated Florida CLT Primer in 2015. The Primer features the Community Land Trust work of the many successful CLTs throughout Florida.
The updated and revised Primer includes: Quick and Important Facts about CLTs; Model Ground Lease; Resale Formula Options; Education for the CLT Homebuyer; Why a Lender would want to Finance a CLT Home; Understanding the Bank Appraisal for CLT properties; Understanding Ad Valorem Taxes for CLT properties; CLT Success Stories; Benefits of Using a CLT for Rental Housing; Benefits of Using a CLT to implement an Inclusionary Policy; How to Include a CLT Strategy in the SHIP LHAP; Using a CLT for Land Bank/Steward of Vacant Land; and How CLTs Save Taxpayer/public monies. The Primer further features the Community Land Trust work of the many successful CLTs throughout Florida.
CLTs in Action
Below are some additional resources helpful for CLTs in Florida:
- Map of Community Land Trusts in Florida in 2018
- Understanding Subsidy Retention: video | white paper
- Center for American Progress Community Land Trust Report 2016
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