Agenda - 12-07-1999 - 9c - Laserfiche WebLink

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6 Future evaluation of bond criteria should include a determination of the relative weight (assuming a point system is used) should be given to long-term affordability. Further, all bond proposals recommended for funding to date propose to keep the projects affordable for 31 to 40 years or more, however, the mechanism. to be utilized is not always clear. It will be incumbent upon the County to recommend a preferred method in order to protect the bond investment. The recommended long-term affordability mechanism will then be a condition of bond award funding. Community Land Trust in Orange County The Community Land Trust in Orange County (CLTOC) began their first year of operation as a non-profit organization in July 1999. It is anon-profit, community based organization whose purpose is to acquire land and make it available to individual families and others, such as cooperatives, through along-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 CLTOC -they own the improvements or housing units/structures on the land. The benefits of this model include the ability of the Land Trust to provide .greater local control over the land 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 CLTOC 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 affordable for future residents. Specifically, the Land Trust utilizes resale formulas that adjust the resale price by considering inflation; maintenance, repairs, and depreciation; penalties for unusual damages; and market appreciation. An analysis of a resale formula is provided on the next page that provides for graduated percentages of appreciation shared with the family at 30%, 35%, 45% and ultimately 50%. This model has been successful in the neighboring city of Durham and. other cities across the country including Burlington, Vermont; Syracuse,. New York; and Cincinnati, Ohio. The first project of the Community Land Trust in Orange County is the joint development of fourteen townhouses in a development known as Scarlett Drive on land owned by the Town of Chapel Hill. Additionally, it has been recommended that CLTOC amend its Charter .and Bylaws to ensure that if it is dissolved its assets will transfer to another owner with the same housing affordability goals as CLTOC. Any County money supporting CLTOC projects should be contingent on the accomplishments of those amendments.