Long Term Housing Affordability Policy

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Ii. Land Trust Model The Land Trust model utilizes a non - profit, community based organization known as a Community Land Trust (CLT) whose purpose is to acquire land and make it available to individual families and others, such as cooperatives, through a long -term lease for a term up to 99 years. The leaseholders or homebuyers do not hold title to the land - the title is retained by the CLT - they own the improvements or housing units /structures on the land. The benefits of this model include the ability of the CLT and housing ownership and protection of affordability for future residents in the sale of buildings and other improvements on the land. The land lease gives the CLT the first option to purchase the home, when and if it is sold, at an affordable price set by a resale formula. The resale formula gives homeowners a fair return for their investment, while keeping the price of the housing units /structures affordable for future residents. tit. New and Existing First -Time Homebuyer Programs A. Right of First Refusal A right of first refusal or right to purchase is accomplished by means of a Declaration of Restrictive Covenants on the property purchased by the first -time homebuyer. Any assignment, sale, transfer, conveyance, or other disposition of the Property or any part thereof whether voluntarily or involuntarily or by operation of law ( "Transfer ") shall not be effective unless and until the below- described procedure is followed. If the original homebuyer or any subsequent qualified homebuyer ( "Buyer") contemplates a Transfer to a non low - income household as defined herein, Buyer shall send to Orange County and/or the sponsoring non -profit organization, not less than 90 days prior to the contemplated closing date of the Transfer, a "Notice of Intent to Sell." This Notice of Intent to Sell shall be accompanied by a copy of a completed, fully executed bona fide offer to purchase the Property on the then current North Carolina Bar Association "Offer to Purchase and Contract form.. If Orange County and/or the sponsoring non - profit organizations elects to exercise its said right of refusal, it shall notify the Buyer of its election to purchase within 30 days of its receipt of the Notice and shall purchase the Property or portion thereof within 90 days of the receipt of the "Notice of Intent to Sell." As between the County and the sponsoring non - profit organization, if both wish to and have the means to exercise the right of first refusal, the sponsoring non - profit organization shall have priority. If neither Orange County nor the sponsoring non- profit organization advise the Buyer in a timely fashion of an intent to purchase the Property, then the Buyer shall be free to Transfer the property in accordance with this Section.