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3 <br />EXECUTIVE SUMMARY OF TASK FORCE RECOMMENDATIONS <br />What is a Community Land Trust (CLT)? <br />• Primarily, a CLT is a tool that allows for the long-term affordability of housing, <br />by owning the land upon which the housing is built. The purchasers of the <br />homes sign a land lease agreement with the CLT and pay a nominal lease <br />fee each month. <br />• The CLT is governed by a volunteer board of directors that includes residents <br />of the land trust, interested members of the community, and professionals <br />that can provide expertise to the mission and tasks of the CLT. <br />Advantages of a CLT <br />• Provides Chapel Hill and Orange County with another means of creating <br />affordable, diverse and stable housing, both rental and home-ownership. <br />• Offers leaseholders full rights of privacy and security through a 100-year <br />renewable lease that can be transferred to their heirs. <br />• Keeps housing affordable for future generations by controlling the price <br />owners receive when they sell their homes (use of a resale formula). <br />Disadvantages of a CLT <br />Homeowners do not own the land and do not receive the full appreciation of <br />their homes when they sell. Hence, a primary means. of wealth accumulation <br />is denied them. <br />The 100-year lease implies a perpetual commitment to administer the terms <br />of the lease. <br />Recommendation for Creation of CLT <br />• Establish a new 501(c)3 organization with a volunteer Board of Directors that <br />establishes policy. <br />• Contract with Orange Community Housing (OCHC) to perform the <br />administrative tasks, particularly the long-term relationship tasks. This will <br />require additional resources from government over time. <br />• The CLT will not generally be responsible for the purchase of land. The <br />developer (whether Habitat, OCHC or another non-profit) will typically perform <br />those tasks. <br />