Orange County NC Website
Browse       Search
19 <br />II. Land Trust Model <br />The Land Trust model utilizes a non-profit, community based organization known as a <br />Community Land Trust (CLT) whose purpose is to acquire land and make it available to <br />individual families and others, such as cooperatives, through a long-term lease for a term <br />up to 99 years. The leaseholders or homebuyers do not hold title to the land - the title is <br />retained by the CLT - they own the improvements or housing units/structures on the land. <br />The benefits of this model include the ability of the CLT to provide first-time <br />homeownership opportunities for the initial buyer as well as protection of affordability <br />for future residents in the sale of buildings and other improvements on the land. The <br />land lease gives the CLT the first option to purchase the home, when and if it is sold, at <br />an affordable price set by a resale formula. The resale formula gives homeowners a fair <br />return for their investment, while keeping the price of the housing units/structures <br />affordable for future residents. <br />III. New and Existing First-Time Homebuyer Programs <br />A. Period of Affordability <br />All properties supported by County financial resources for the purpose of facilitating <br />homeownership must remain affordable to families at or below 80% of median income <br />for a minimum of ninety-nine (99) years from the date of initial assistance. <br />B. Right of First Refusal <br />A right of first refusal or right to purchase is accomplished by means of a Declaration of <br />Restrictive Covenants on the property purchased by the first-time homebuyer. Any <br />assignment, sale, transfer, conveyance, or other disposition of the Property or any part <br />thereof whether voluntarily or involuntarily or by operation of law ("Transfer") shall not <br />be effective unless and until the below-described procedure is followed. <br />If the original homebuyer or any subsequent qualified homebuyer ("Buyer") <br />contemplates a Transfer to a non low-income household as defined herein, Buyer shall <br />send to Orange County and/or the sponsoring non-profit organization, not less than 90 <br />days prior to the contemplated closing date of the Transfer, a "Notice of Intent to Sell." <br />This Notice of Intent to Sell shall be accompanied by a copy of a completed, fully <br />executed bona fide offer to purchase the Property on the then current North Carolina Bar <br />Association "Offer to Purchase and Contract" form. If Orange County and/or the <br />sponsoring non-profit organizations elects to exercise its said right of refusal, it shall <br />notify the Buyer of its election to purchase within 30 days of its receipt of the Notice and <br />shall purchase the Property or portion thereof within 90 days of the receipt of the "Notice <br />of Intent to Sell." As between the County and the sponsoring non-profit organization, if <br />both wish to and have the means to exercise the right of first refusal, the sponsoring non- <br />profit organization shall have priority.