State College Community Land Trust Building Community Through Home Ownership

THE REALITIES OF THE MARKETPLACE Many low and modest income jobs are in town Families with low and modest incomes benefit from living near their work In-town real estate is expensive and getting more so each year Urban home ownership decreases as rental housing increases

COMMUNITY LAND TRUSTS An innovative approach A global initiative Introduced to US in Increasing in popularity over the past 30 years all over the country 3

National Community Land Trust Network

WHAT IS A COMMUNITY LAND TRUST? Private, nonprofit, community-based organization Governed by board representative of community interests For example, our board consists of: – – One-third CLT homeowners – – One-third community representatives – – One-third public representatives 5

KEY OBJECTIVES OF COMMUNITY LAND TRUSTS Provide access to housing for people who are otherwise denied 6 Preserve neighborhood resources Empower residents through involvement and participation in the organization Preserve the affordability of housing permanently

Acquires properties through donation or purchase Separates ownership of the land from the home – – CLT retains ownership of the land – – Homeowner purchases and owns the home – – CLT leases land to homeowner under a 99- year lease 7 HOW DOES A CLT WORK?

STATE COLLEGE COMMUNITY LAND TRUST (SCCLT) Formed in 1996 at the request of State College Borough Focus is on buying, rehabilitating, and selling houses SC Borough provides HUD money to SCCLT for purchases 8 Member of the National Community Land Trust Network One of three CLTs in Pennsylvania

MISSION OF SCCLT The SCCLT supports vibrant neighborhoods by creating and maintaining sustainable housing opportunities for families and individuals who value living in the Borough of State College. 9

10 College Heights Highlands State College South Tusseyview Greentree Holmes-Foster SCCLT SINCE 1996 Over 30 households have become homeowners for the first time These homes are located throughout the Borough

HOW DOES THE SCCLT WORK? Obtain funding Purchase or accept donated house Rehab house Examples of the type of rehab work done: 11  New roof  Upgrade electrical service  Upgrade plumbing  Replace inefficient windows and doors  Replace unusable appliances  Paint, carpet, flooring  Mitigate lead-based paint, asbestos, radon

HOW DOES THE SCCLT WORK? 12 SCCLT retains deed to the land Market and sell house (aka “improvements”) to an income-qualified buyer Lease the land to the homeowner at nominal fee Homeowner responsible for taxes and maintenance of house and land Homeowner and SCCLT share in equity upon resale

When possible, rehab uses environmentally friendly materials All replacement appliances are Energy Star™ models SCCLT GREEN INITIATIVE 13 Installation of low flow faucets, shower heads and toilets All houses receive an energy audit Actively seeking grants for energy efficient rehab

HOW DOES SCCLT KEEP THE HOME PERMANENTLY AFFORDABLE? Homeowner(s) agree to share with future homeowners the affordability that was created for them Seller is allowed to receive price reflective of the value invested in the property Selling price is limited to preserve affordability to the next buyer House is re-sold to a SCCLT qualified buyer SCCLT has first refusal to purchase the house back from the homeowner Benefits of home ownership are preserved for future generations 14

HOW DOES THE BOROUGH BENEFIT? Residential neighborhoods are preserved Older deteriorating homes are rehabilitated and given new life Young families move into the Borough Brings workers closer to their jobs and students closer to their schools 15

SAMPLE SCCLT PROPERTIES 16 Taylor Street South Atherton Street West Lytle Avenue

HOW DOES THE HOMEBUYER BENEFIT FROM SCCLT? Makes first-time home purchase affordable Advantages of an excellent support system – – Free legal assistance at closing – – Home has been rehabilitated – – SCCLT provides a free energy audit of the house – – Free financial counseling Social benefits – – Join a group of fellow homeowners – – Help others become first-time homeowners – – Participate in SCCLT social activities Practical benefits – – Freedom from rent – – Build equity for the future – – Personal pride in helping to sustain the community 17

HOW CAN YOU HELP? Sell or donate your house to the SCCLT Become a member Volunteer Donate Spread the word! 18

19 This presentation represents the collaborative efforts of many involved with the State College Community Land Trust. A sincere thank you to all those who had a hand in creating this presentation, among whom are: The Market/Outreach committee The Board of Directors and the Executive Director The Planning Office of the Borough of State College Research and script development.....Bob Leonard Graphic design.....John Hiester

20 State College Community Land Trust 420 West College Ave. State College, PA Phone/Fax: Website: