Agenda - 03-29-2007- - Laserfiche WebLink

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We believe these changes to the ground lease will enable our homes to remain affordable and well maintained far into the future. However these measures alone will not be sufficient to keep our existing inventory of homes affordable and well maintained without additional funding. Based on our analysis and our projections, we will need $3.1 million over the next 25 years to keep all 125 homes affordable and well maintained. About one -half of the $3.1 million results from the accrual of deferred maintenance across the current inventory. Until those homes resell into the new model, that accrual will continue, without funds being set aside for maintenance. The other half results from some homes becoming unaffordable (such as the 2BR units at the Greenway Condominiums in Meadowmont) and the need for subsidy to allow for the monthly maintenance fee. We recognize that $3.1 million is a lot of money and we don't expect a solution will reveal itself in the short term. If the local governments approve, we can obtain funding to meet our short-term needs through the CDBG and HOME programs as well as from County bond funds. We expect to meed approximately $235,000 to address affordability issues in 2007. This amount is due mostly to the 2BR Greenway units. Our projection for 2008 is only $78,000. As the executive director, who has served since prior to the organization's conversion to the community land trust model, I would like to offer my sincere regret that this model is not working as well as we had planned. The original steering committee and board of directors, and I, recognized that maintenance would be problematic, but we were unable to devise a workable solution. We simply didn't understand the model well enough. Today, thanks to the efforts of the Asset Management Committee, we understand the model far better. In fact, we believe we can now see the future, and if we do not alter the model, then Land Trust homes will deteriorate over time and some will become unaffordable. Unfortunately, revising the model will not be enough. Funding will be necessary if we want the model to be successful at providing decent, well - maintained homes that will be affordable to future generations of low- income individuals and families. With adequate funding, I believe our Land Trust will be in a position to establish a new national standard for affordable housing sustainability. Thank you for your support and your commitment to integrating affordable housing units into new residential developments. 2