The Third Way: Community Control Over Land

Housing is a Human Right PLATFORM Foreclosures, Evictions and Public Housing Police Brutality Commons (Schools; buildings; parks; spaces) Corporate Account- ability 2012 Spring Action BUILD A PLATFORM MOVE A MOVEMENT

Defining the Problem Profit before People? How Did We Get Here? Since 2007, 8 million households foreclosed. Recent projections estimate, 8-10 million more may join before the crisis ends. 5 million homeless people, 19 million people-less homes.

Defining the Problem “What has taken place was not only predictable, it is a consequence of the very structure of the housing system and financial system.” - Michael Stone, Professor of Economics University of Massachusetts

Defining the Problem [INCOME INEQUALITY & DEBT] : flat wages for most, home prices up 188%, mortgage debt up 890%.

Defining the Problem

[GOVERNMENT POLICIES] 1980s-’90s As savings dropped, Housing finance moved from local Savings & Loans banks to Wall Street’s Capital Markets. New financial instruments created to maximize profits for investors Speculative homeownership heavily promoted by U.S. gov’t Growth of Sub-prime Industry: 1994: 5 in 100 mortgages were sub- prime 2006: 1 in 5 mortgages were sub-prime

Defining the Problem [HOUSING AS SPECULATIVE COMMODITY] Predatory practices were aided by the following rampant myths about speculative homeownership: Owning a home is always a good investment Homeowners are always better off than renters because they don’t have a landlord Mortgage debt is different than other debt The “American Dream” of owning a home is attainable to anyone willing to do a little hard-work and commit themselves

Defining the Problem [HOUSING AS SPECULATIVE COMMODITY] In Reality, Only 20% of U.S. households own their homes outright (without a mortgage) 1 in 3 of us can’t afford housing costs & a conservative estimate of other basic essentials (e.g. food, medical care) - 25% homeowners, 50% renters.

Defining the Problem

What’s next - Wall St. Landlords?

Community Control Over Land Housing is a Human Right PLATFORM Foreclosures, Evictions and Public Housing Police Brutality Commons (Schools; buildings; parks; spaces) Corporate Account- ability What’s the Solution?

Why Community Control Private Bank; Corporation; Speculator; Homeowner

Why Community Control Private 60% of all U.S. land 80% of that is owned by the wealthiest 10% Bank; Corporation; Speculator; Homeowner

Why Community Control Private 60% of all U.S. land 80% of that is owned by the wealthiest 10% Only 20% of U.S. households own their homes outright (without a mortgage) Bank; Corporation; Speculator; Homeowner

Why Community Control Private Public Bank; Corporation; Speculator; Homeowner Government Center; Post Office; Library; Public Housing; Park 60% of all U.S. land 80% of that is owned by the wealthiest 10% Only 20% of U.S. households own their homes outright (without a mortgage)

Why Community Control Private The Third Way Public Bank; Corporation; Speculator; Homeowner Community Control; Democratically Controlled Community Land Trust, Cooperative Government Center; Post Office; Library; Public Housing; Park

What are Community Land Trusts? How might CLTs be used to institute and model “Community Control over Land”? 2012 Spring Action What about Community Land Trusts?

What are Community Land Trusts? 2012 Spring Action The Third Way: Community Control Transformative Wins

What are Community Land Trusts? Non-profit tax-exempt (501c3) organizations 2012 Spring Action The Third Way: Community Control Transformative Wins

What are Community Land Trusts? Non-profit tax-exempt (501c3) organizations With open, place-based memberships 2012 Spring Action The Third Way: Community Control Transformative Wins

What are Community Land Trusts? Non-profit tax-exempt (501c3) organizations With open, place-based memberships ( that can be empowered to democratically make decisions) 2012 Spring Action The Third Way: Community Control Transformative Wins

What are Community Land Trusts? CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community Spring Action The Third Way: Community Control Transformative Wins HOUSING LAND

What are Community Land Trusts? CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community. “What’s on top” can be a home, a building, a garden, anything! 2012 Spring Action The Third Way: Community Control Transformative Wins HOUSING LAND

What are Community Land Trusts? CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community. “What’s on top” can be a home, a building, a garden, anything! and is owned (with resale restrictions) by homeowners, non-profit rental co’s, even businesses Spring Action The Third Way: Community Control Transformative Wins HOUSING LAND

What are Community Land Trusts? CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community BOTTOM LINE? 2012 Spring Action The Third Way: Community Control Transformative Wins HOUSING LAND

What are Community Land Trusts? CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community BOTTOM LINE? Land can’t simply be sold to highest bidder on private market Spring Action The Third Way: Community Control Transformative Wins HOUSING LAND

What are Community Land Trusts? 70% focus on an area greater than a single neighborhood 95% of CLT ground leases are for 99 years, renewable 59% of CLT units are rehabbed 95% of CLTs lease to homeowners, 45% have rental 2012 Spring Action The Third Way: Community Control Transformative Wins HOUSING LAND

How might CLTs be used to institute & model “Community Control over Land”? 2012 Spring Action The Third Way: Community Control Transformative Wins LAND HOUSING

How might CLTs be used to institute & model “Community Control over Land”? CLTs separate ownership of land and what’s on top of it (e.g. a home) 2012 Spring Action The Third Way: Community Control Transformative Wins LAND HOUSING

How might CLTs be used to institute & model “Community Control over Land”? CLTs separate ownership of land and what’s on top of it (e.g a home) CLTs hold the land off the market, enabling a “put people first” check on the housing market Spring Action The Third Way: Community Control Transformative Wins LAND HOUSING

How might CLTs be used to institute & model “Community Control over Land”? CLTs separate ownership of land and what’s on top of it (a home) CLTs hold the land off the market, enabling a “put people first” check on the housing market. CLTs can empower community through direct democracy & an open place-based membership structure 2012 Spring Action The Third Way: Community Control Transformative Wins LAND HOUSING

How might CLTs be used to institute & model “Community Control over Land”? The board of the CLT is typically made up of three representatives of the following groups in equal part: 2012 Spring Action The Third Way: Community Control Transformative Wins LAND HOUSING

How might CLTs be used to institute & model “Community Control over Land”? The board of the CLT is typically made up of three representatives of the following groups in equal part: 1. Tenant/Leaseholder Representatives 2. Neighborhood Representatives 3. “Experts” and Community Leaders Because power is shared between these three groups, a set of checks and balances is able to prevent speculation Spring Action The Third Way: Community Control Transformative Wins LAND HOUSING

Third Way: Interim Proposal Model 1 Land Land: 501(c)3 Partner

Third Way: Interim Proposal Model 1 Land Land: 501(c)3 Partner Restricts Resale Owns land in perpetuity Ground lease with community partnership

Third Way: Interim Proposal Model 1 Land Land: 501(c)3 Partner Restricts Resale Owns land in perpetuity Ground lease with community partnership Improvements: Democratic Community Partnership

Third Way: Interim Proposal Model 1 Land Land: 501(c)3 Partner Restricts Resale Owns land in perpetuity Ground lease with community partnership Improvements: Democratic Community Partnership Essential: o Resident(s) o General community members o Community organization(s) Important: o Property management partner o Resource partner o Other community organizations (Faith-based, Social Services, etc.) Examples of Vehicles o 501(c)3, 501(c)2...

Third Way: Interim Proposal Model 2 Land Land: Democratic Community Partnership

Third Way: Interim Proposal Model 2 Land Land: Democratic Community Partnership Restricts Resale CLT owns land in perpetuity Ground lease with homeowner, coop, non-profit...

Third Way: Interim Proposal Model 2 Land Improvements: Homeowner, Coop, Non-Profit Land: Democratic Community Partnership Restricts Resale CLT owns land in perpetuity Ground lease with homeowner, coop, non-profit...

Third Way: Interim Proposal Model 2 Land Improvements: Homeowner, Coop, Non-Profit Responsibilities: Taxes, repairs & improvements Restrictions: o Use (ex. owner must occupy, could require partnership decision making on major shifts) o Resale (limited or no equity) Land: Democratic Community Partnership Restricts Resale CLT owns land in perpetuity Ground lease with homeowner, coop, non-profit...

Third Way: Interim Proposal Model 3 Land Land: Democratic Community Partnership

Third Way: Interim Proposal Model 3 Land Land: Democratic Community Partnership Restricts Resale CLT owns land in perpetuity Rent-Only lease with individual, non-profit or business

Third Way: Interim Proposal Model 3 Land Improvements: Rent Only Land: Democratic Community Partnership Restricts Resale CLT owns land in perpetuity Rent-Only lease with individual, non-profit or business

Third Way: Interim Proposal Model 3 Land Improvements: Rent Only No ownership stake - leases only the improvement Direct control of land and improvements But, could hire a management company or non- profit Land: Democratic Community Partnership Restricts Resale CLT owns land in perpetuity Rent-Only lease with individual, non-profit or business