COMMUNITY LAND TRUST ONLINE ORIENTATION

PUTTING THE DREAM OF HOMEOWNERSHIP WITHIN REACH

NORTHSHORE HOUSING INITIATIVE

We are a 501(c)(3) private nonprofit corporation. The NHI business model and funding are dedicated to the purchase of land assisting moderate income homebuyers and providing for the long-term affordability of workforce housing in St. Tammany Parish.

We are on open-membership organization with a 9-person board of directors and a full time staff. We are one of more than 200 community land trusts nation-wide and 4 in Louisiana.

THE PROBLEM: NEED FOR WORKFORCE HOUSING

- Population growthin St. Tammany

- More service workers- Land price escalation

SOLUTION: SHARED EQUITY MODEL

HOMEBUYER BENEFITSBelow market rate purchase price.

Safe loans with low fixedrate financing.

Tax advantages of ownership.

Lower monthly housing cost.

Membership in ahomeowner community.

COMMUNITY BENEFITSExpanded options for

moderate income homeownership.

Community land trustconserves land.

Resale restrictionspreserve workforce housing.

Vital service workers canafford to live and work in the Parish.

“I have always dreamed of owning my own home one day. Summit Funding, a Rural Development Guaranteed Loan and Northshore Housing Initiative land purchase subsidy with God’s grace and a lot of hard work made the dream come true.” ~ Gena Richardson

(985) 246-7050

www.northshorelandtrust.org

NHI Homebuyer Testimonial

NHI ELIGIBILITY

- Majority Age - must be 18.- Citizen of USA or registered

alien.- Creditworthy - pre-qualified

bySt. Tammany Homeownership Center or NHI mortgage lending partner:

Household Size Income Maximum1 $33,6002 $38,4003 $43,2004 $48,0005 $51,8506 $55,7007 $59,5508 $63,400

Income = 80% or less of MHI Other Eligibility Criteria

- Debt to income ratio.-Income sufficient to afford themonthly cost of homeownership.-Financial resources and credit score.-Asset limit.

NHI ROAD TO HOMEOWNERSHIP

HOMEBUYER TRAININGNorthshore Housing Initiative homebuyer counseling and training classes are conducted at:

St. Tammany Homeownership Center, 1400 North Lane, Mandeville, LA 70471 and atNew Day Homeownership Services, 303 South Military Road, Slidell, LA 70461

Experienced counselors evaluate your credit to determine mortgage readiness and prequalification limits. They can help develop a plan to overcome any credit or savings obstacles and schedule you for required homebuyer training classes.

Homebuyer Training guides buyers through all steps of the home buying process and provides information on protecting and preserving their home and investment. The 9-hour workshop consists of three 3-hour evening classes and is held every other month. Fee $35

Financial Fitness teaches basic financial and money management with an emphasis on building financial responsibility and long-term financial success. The 12-hour workshop consists of four 3-hour evening classes held over two weeks. It is held every month. Fee $35

Home Maintenance These classes are designed to help new homeowners understand basic home systems and preventive maintenance. Free

NHI - HOW IT WORKS- Mortgage lender pre-qualifies buyer with CLT

purchasing land.- Homebuyer locates house to purchase or build.- Homebuyer leases land from CLT.

Example:House price $180,000Homebuyer mortgage $144,000CLT purchases land $36,000Shared appreciation agreement.

NHI LAND LEASE OVERVIEWThe ground lease is a document signed at closing that details the terms of purchase assistance from NHI. Some of the key points are: - The lease has a 99-year term.- The lease is inheritable.- The lease requires owner occupancy.- A resale formula sets shared equity on appreciation and keeps the land affordable for the next buyer.- Homeowner pays a monthly ongoing lease fee to NHI of $45/month.- Homeowner enjoys automatic membership in the Community Land Trust. - The homeowner agrees to insure home, pay taxes and maintain home to protect the community investment.

NHI RESALE EXAMPLE

Original sales price and appraisal price = $180,000

(portion owned by homebuyer 80%)

Appraisal at resale $210,000 = Appreciation in appraised value of $30,000 (increase in

value attributed to ownership by homeowner

= $30,000 X 80% = $24,000 times shared appreciation factor of 25% = $6,000.

At resale the homeowner would receive their original investment of $144,000 plus

$6,000 = $150,000 = sales price to next owner.

The remaining appreciation would stay with the property to allow it to be sold as

affordable to the next buyer.

Resale prior to 5 years Shared Appreciation Factors

Percentage Ownership25% 0-5 Years35% 6-10 Years45% 11-15 Years55% 15+ Years

When you sell your land trust home the subsidy you received to help you purchase is “paid forward” thus helping another family also afford to purchase an affordable home in the community.

COMMUNITY LAND TRUST “Putting the dream of homeownership within reach.”

Northshore Housing Initiative222 North Vermont St.Covington, Louisiana 70433985-246-7050www.northshorelandtrust.org