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

2. SHARE
Community Land Trust
KEEPING
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 CLT
Homeownership
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
MEND
SHARE has already provided
over 20
families with the opportunity
to own
their own home.
Jubilee Global
Gifts
Community
Cupboard
Cornerstone
Adult Family
Home
Alpine 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, Rocio
Homeowners
The SHARE
Committee
Community
Members
Momi, Hans
E
Staff & 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)
HUD’s Self Help Opportunity Program (SHOP)
Federal Home Loan Bank
The Icicle Fund
With 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. Ownership
Homeowner owns the house and its
improvements
Ground Lease
Upper 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
improvements
•
The homeowner’s responsibilities;
•
Ground Lease
The 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 Market
CLT Price
240000
$220,000
220000
Purchasing 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
$162,422
160000
140000
$145,020
120000
100000
Initial Sale
Resale
At resale, SHARE calculates
appreciation using Area
Median Income.

14. III. SHARE - PROGRAM DETAILS

15. Why Leavenworth
Needs Affordable
Homes
Leavenworth
Housing Prices
Affordability
Gap Grows
Local incomes are not
increasing as quickly as
housing costs.
Purchasing Power
Of Average Family in Leavenworth

16. Living in a CLT Neighborhood
Neighbors own their
houses too.
CC&R’s
Neighbors share common
area.
Homeowner owns the house.
Ground
Lease
Upper Valley MEND owns
the land.

17. CC&R’s: Covenants, Conditions, and Restrictions
CC&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 Homeownership
•
HOME PRICES
•
REQUIRED FIXED RATE LOANS
•
LOW FORECLOSURE RATE
•
ONGOING SUPPORT
•
INCOME 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. Owning
Rent
•Rent
Own
VS.
•Mortgage Payment (Principal, Interest,
•Utilities
Taxes, Insurance)
•Renter’s Insurance
•Ground Lease Fee
•Yard Maintenance
•Replacement Reserves
•Utilities
•Yard Maintenance and home Repairs

22. Inquiry
Referral
Attend Orientation; receive application
V. How do
I Apply?
Turn in completed application
and documents, pay $60
application fee.
.
Interview with SHARE Staff
If eligible, join waitlist.

23. Eligibility
Eligible for SHARE if:
 The applicant is/has been a resident or employee in
the 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 Income
Household
Size
1
2
80%
$32,400
$37,000
3
4
5
6
7
$41,650 $46,250 $49,950 $53,650 $57,350
Total 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 SHARE’s 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 Information
House 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!