community land trust ground lease

The Purchase Option Price shall be the lesser of (a) the value of the Home (consisting of improvements only) as determined by the Appraisal commissioned and conducted as provided in 10.5 above or (b) the price calculated in accordance with the formula described below (the Formula Price). However, if Homeowner or Permitted Mortgagee has begun to cure such default within the 60-day cure period and is continuing such cure with due diligence but cannot complete the cure within the 60-day cure period, the cure period shall be extended for as much additional time as may be reasonably required to complete the cure. 60 0 obj <>stream. Nothing in the Permitted Mortgage or related documents shall be construed as giving Permitted Mortgagee a claim on MCLT’s interest in the Leased Land, or as assigning any form of liability to the MCLT with regard to the Leased Land, the Home, or the Permitted Mortgage. The amount of such increase in coverage shall be based on current trends in homeowner’s liability insurance coverage in the area in which the Home is located. How We Do It Community land trusts have grown in popularity over the last few decades as communities embrace this effective model for creating permanently affordable housing. At times, the CLT can be the landowner, leasing land to an external entity to manage agricultural programming, as illustrated by the Madison Area CLT’s Troy Gardens project. I, ___________________________,  have been independently employed by _____________________________         (hereinafter “the Client”) who intends to purchase a house and other improvements (the “Home”) on land to be leased from the Marlborough Community Land Trust. In the event that the Formula Price exceeds the affordability limit, the price will be equal to the affordability limit. 6. 14.11  GOVERNING LAW:  This Lease shall be interpreted in accordance with and governed by the laws of Missouri. 10.10  HOW THE FORMULA PRICE IS CALCULATED:  The Formula Price shall be equal to Homeowner’s Base Price, as stated below, plus 30% of the increase in market value of the Home, if any, calculated in the way described below. Homeowner shall maintain all parts of the Home and Leased Land in safe, sound and habitable condition, in full compliance with all laws and regulations, including Exhibit “Property Maintenance Requirements.” Homebuyer is also required to maintain the insurance coverage required by Section 9.4 of this Lease. The community land trust ground lease may include certain restrictions limiting future property purchasers to low-income and moderate-income families and to limit the maximum sales price of the property. Thistle acquires and builds affordable homes and limits the sales price on these homes. 10.11  QUALIFIED PURCHASER SHALL RECEIVE NEW LEASE:  The MCLT shall issue a new lease to any person who purchases the Home in accordance with the terms of this Article 10. 0000000756 00000 n The study details 16 successful examples of conservation-based affordable housing, ranging across urban, suburban and rural communities. This form removes resale restrictions as well as any other restrictions that may be included in the ground lease that could affect the value of . Upon receiving a copy of the notice of default and within that period of time in which the Homeowner has a right to cure such default (the “cure period”), the MCLT shall have the right to cure the default on the Homeowner’s behalf, provided that all current payments due the Permitted Mortgagee since the notice of default was given are made to the Permitted Mortgagee. In the event that MCLT sends a notice of default under the Lease to Homeowner, MCLT shall also send a notice of Homeowner’s default to Permitted Mortgagee. 0000014076 00000 n “Income-Qualified Buyer” shall mean a person or group of persons whose household income does not exceed eight percent (80%) of the median household income for the applicable Jackson County as calculated and adjusted for household size from time to time by the U.S. Department of Housing and Urban Development (HUD) or any successor. Successful applicants will be provided a final ground lease during the application process. 1. Now, therefore, the Homeowner/Mortgagor and the Mortgagee hereby agree that the terms and conditions of the Mortgage shall include the Stipulated Conditions stated below. Lease your land from Houston Community Land Trust for 99 years. In the housing sector, the CLT model combines two basic innovations in governance of land. C.  The Leased Land described in this Lease has been acquired and is being leased by the MCLT in furtherance of this goal. In the event that MCLT increases the Fees, the increases shall never exceed 50% of the original Lease Fee amount as listed in Article 5.5 above. The Homeowner may not mortgage the MCLT’s interest in the Leased Land, and may not grant any mortgage or deed of trust without MCLT’s Permission. 12/10) Community Land Trust Ground Lease Rider [For use with CLT ground leases substantially based on either the Institute for Community Economics or the By taking the cost of the land out of the real estate transaction, land trust homes are more affordable than houses on the open real estate market. 0000015802 00000 n A. Homeowner shall maintain the Home and Leased Land as required by Section 4.2 above and shall see that all necessary repairs and replacements are accomplished when needed. 8.5 A PERMITTED MORTGAGEE HAS CERTAIN OBLIGATIONS UNDER THE LEASE. Roots of agricultural ground lease Model comes from ground leases used in affordable housing • Community land trusts have used this approach for housing since 1980s in urban and rural areas • About 250 CLTs are active in US • Proven effective for maintaining affordability over time • CLT homes can be bought, sold, or Homeowner shall take action to discharge such lien, whether by means of payment, deposit, bond, court order, or other means permitted by law. The trust collects modest ground lease fees and provides ongoing support for the homeowners and for stewardship of the land. The Revolution Will Not Be Funded gathers essays by radical activists, educators, and non-profit staff from around the globe who critically rethink the long-term consequences of what they call the "non-profit industrial complex. The terms and conditions of the lease also limit the price for which I can sell the home, in order to keep it affordable for such income-qualified persons. A community land trust (CLT) is a private, nonprofit organization created to acquire and hold land for the benefit of a community and provide secure affordable access to land and housing for community residents. The Client is entering the aforesaid transaction in reliance on her own judgment and upon her investigation of the facts. In no event shall such document state the rent or other charges payable by Homeowner under this Lease; and any such document shall expressly state that it is executed pursuant to the provisions contained in this Lease, and is not intended to vary the terms and conditions of this Lease. The Grand Haven Area Community Land Trust Board will be holding a special meeting on Tuesday, August 17, 2021 at 5:30 p.m. in the Grand Haven City Hall 2nd Floor Conference Room. MCLT shall not be required to furnish any services or facilities or to make any repairs to the Home. This Notice shall include a statement as to whether Homeowner wishes to recommend a prospective buyer as of the date of the Notice. The MCLT shall have, and the Homeowner hereby consents to, a lien upon the Home for any unpaid Lease Fee. If Homeowner fails to discharge such lien within the 60-day period, then Homeowner shall immediately notify MCLT of such failure. A photocopy of a receipt shall be the usual method of furnishing such evidence. The purchase price is more affordable because the homeowner is only buying the house, not the land. In an emergency, the MCLT may inspect any part of the Leased Land except the interiors of fully enclosed buildings, after making reasonable efforts to inform the Homeowner before the inspection. The change shall not take effect without MCLT’s approval. The MCLT then, within two weeks of receiving all necessary information (including any additional information it may have requested) shall give Homeowner either its written consent or a written statement of its reasons for not consenting. 12.4         MEDIATION In the event of long-standing or repeated breaches of the Lease, MCLT shall have the right to order professional mediation between the Homeowner, MCLT and any other interested parties to be performed by a third party. 10.1  INTENT OF THIS ARTICLE IS TO PRESERVE AFFORDABILITY:  Homeowner and MCLT agree that the provisions of this Article 10 are intended to preserve the affordability of the Home for lower income households and expand access to homeownership opportunities for such households. Generally, Community Land Trusts (CLTs) may charge ground lease fees to HOME-assisted homeowners. It keeps housing affordable for future buyers by controlling the resale price of houses on CLT land through a ground lease and resale formula. Ground lease resolution discussion c. […] Homeowner shall receive written notice of any proposed increases. 4.2 HOMEOWNER MUST USE THE HOME AND LEASED LAND RESPONSIBILY AND IN COMPLIANCE WITH THE LAW:  Homeowner shall use the Home and Leased Land in a way that will not cause harm to others or create any public nuisance. trailer Upon sale or other transfer, Homeowner shall either (i) transfer the Home with all originally purchased appliances or replacements in the Home in good working order or (ii) reduce the Purchase Option Price by the  market value of any such appliances that are not left with the Home in good working order. At the caucus, we announced the launch of the Florida CLT blog, hosted by the Florida Community Land Trust Institute. 0000014387 00000 n Q6: How can a lender confirm that the ground lease is based on the model documents developed by the National A community land trust may retain title to land it acquires and may: (1) sell housing units located on the land and lease the land under ground leases with terms of at least 99 years; or (2) lease housing units located on the land. If Homeowner purchases such a home, Homeowner agrees to apply any proceeds or award received by Homeowner to the purchase of the home. CLTs have become a hot topic — especially in today's affordable housing crisis — because they decommodify land, taking it out of the speculative market so that no one can flip a house or build luxury condos on it.. Community Land Trust: GROUND LEASE . 14.5  RIGHT OF FIRST REFUSAL IN LIEU OF OPTION:  If the provisions of the purchase option set forth in Article 10 of this Lease shall, for any reason, become unenforceable, MCLT shall nevertheless have a right of first refusal to purchase the Home at the highest documented bona fide purchase price offer made to Homeowner. _____________________________  for Mortgagee              Date: ____________, _____________________________ for Homeowner/Mortgagor    Date: ____________. Homeowner’s share of Increase in Market Value: Homeowner’s share of the increase in the market value of the Home equals thirty percent (30%) of the increase in market value as calculated above. The community land trust ground lease may include certain restrictions limiting future property purchasers to low-income and moderate-income families and to limit the maximum sales price of the property. 14.6  WAIVER:  The waiver by MCLT at any time of any requirement or restriction in this Lease, or the failure of MCLT to take action with respect to any breach of any such requirement or restriction, shall not be deemed to be a waiver of such requirement or restriction with regard to any subsequent breach of such requirement or restriction, or of any other requirement or restriction in the Lease. (For use with CLT ground leases substantially based on either the Institute for Community Economics or the National Community Land Trust Network model ground lease.) For example, a 99-year lease with unclear performance standards can put the tenant at risk of arbitrary termination. The Client has received full and complete information and advice regarding this conveyance and the foregoing documents. However, if Homeowner makes a good faith partial payment of at least two-thirds (2/3) of the amount owed during the 30-day cure period, then the cure period shall be extended by an additional 30 days. The Buyer shall provide a copy of the Inspection Report to Buyer’s lender (if any), the Homeowner, and the MCLT within 10 days after receiving the Inspection Report. Leased Land: the parcel of land, described in Exhibit “LEASED LAND”, that is leased to the Homeowner. 4.1  HOMEOWNER MAY USE THE HOME ONLY FOR RESIDENTIAL AND RELATED PURPOSES:  Homeowner shall use, and allow others to use, the Home and Leased Land only for residential purposes and any activities related to residential use that were permitted by local zoning law when the Lease was signed, as indicated in the attached Exhibit ZONING. The Repair Reserve Fee will cease to be collected when the Repair Reserve Fund reaches $1,500.00. The Permitted Mortgage: A mortgage or deed of trust on the Home and the Homeowner’s right to possess, occupy and use the Leased Land granted to a lender by the Homeowner with the MCLT’s Permission. Attached as Exhibit “HOMEOWNER’S LETTER OF AGREEMENT AND ATTORNEY’S LETTER OF ACKNOWLEDGMENT” and made part of this Lease by reference are a Letter of Agreement from the Homeowner, describing the Homeowner’s understanding and acceptance of this Lease (including the parts of the Lease that affect the resale of the Home), and a Letter of Acknowledgment from the Homeowner’s attorney, describing the attorney’s review of the Lease with the Homeowner. Specific PERMISSION for subleasing is granted, the price will GO to MCLT MCLT... 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