SHARED EQUITY KITTITAS YAKIMA VALLEY CLT Sarah BedsaulDirector

Modern Idea of CLT

Landowner is a private, non profit corporation with membership that is open to anyone living within the CLT’s geographically defined “community.”

A majority of the governing board is elected by the CLT membership.

There is a balance of interests on the governing board including leaseholders, community residents and representation of the public interest.

Structured Ownership

Land is treated as common heritage, to be used for the communities’ benefit, not as an individual possession.

Land is removed permanently from the market, never resold.

All structural improvements are owned separately from the land.

A ground lease lasting many years gives the owner of the improvements exclusive use of the land.

Ground Lease

Legal land use document, used for closing, 33 pages long Includes:

Letters of Agreement Transfer of rights to land Terms of lease Use of leased land Lease fee Taxes and Assessments The home Financing Liability, insurance, damage & destruction, eminent domain Transfer of the home Default Arbitration General Provisions Exhibits

The highlights

99 year lease, restarts at each sale, can be renewed

Residential uses only, legal uses only, owner occupied

Must occupy home for at least 9 months of the year

No subleasing Homeowner pays a small lease fee to CLT Homeowner pays all taxes & assessments Cannot mortgage with out CLT permission

Highlights continued…

Homeowner must carry insurance KYVCLT has first right of refusal Lease automatically makes homeowner

a voting member of CLT

CLT homes & property taxes

Residents of CLT homes consume local government services (schools, streets, sidewalks, police & fire protection, etc.) to the same extent that other residents of the community do.

Can be split into land and improvements but typically the land tax value is added to lease fee, therefore the home owner still pays all.

Taxes are based on market value of property-The community land trust hand book

Resale Formula

Fixed rate10.10 How the Formula Price Is

Calculated The Formula Price shall be equal to the amount of Homeowner’s Base Price (which CLT and Homeowner agree is $_______) plus interest at a rate of 1% compounded annually for years 1-5, 1.5% compounded annually for years 6-10, and 2% compounded annually thereafter.