1. SHARED EQUITY KITTITAS YAKIMA VALLEY CLT Sarah Bedsaul Director

2. Modern Idea of CLT  Landowner is a private, non profit corporation with membership that is open to anyone living within the CLT’s geographically defined “community.”  A majority of the governing board is elected by the CLT membership.  There is a balance of interests on the governing board including leaseholders, community residents and representation of the public interest.

3. Structured Ownership  Land is treated as common heritage, to be used for the communities’ benefit, not as an individual possession.  Land is removed permanently from the market, never resold.  All structural improvements are owned separately from the land.  A ground lease lasting many years gives the owner of the improvements exclusive use of the land.

4. Ground Lease  Legal land use document, used for closing, 33 pages long  Includes:  Letters of Agreement  Transfer of rights to land  Terms of lease  Use of leased land  Lease fee  Taxes and Assessments  The home  Financing  Liability, insurance, damage & destruction, eminent domain  Transfer of the home  Default  Arbitration  General Provisions  Exhibits

5. The highlights  99 year lease, restarts at each sale, can be renewed  Residential uses only, legal uses only, owner occupied  Must occupy home for at least 9 months of the year  No subleasing  Homeowner pays a small lease fee to CLT  Homeowner pays all taxes & assessments  Cannot mortgage with out CLT permission

6. Highlights continued…  Homeowner must carry insurance  KYVCLT has first right of refusal  Lease automatically makes homeowner a voting member of CLT

7. CLT homes & property taxes  Residents of CLT homes consume local government services (schools, streets, sidewalks, police & fire protection, etc.) to the same extent that other residents of the community do.  Can be split into land and improvements but typically the land tax value is added to lease fee, therefore the home owner still pays all.  Taxes are based on market value of property -The community land trust hand book

8. Resale Formula  Fixed rate 10.10 How the Formula Price Is Calculated The Formula Price shall be equal to the amount of Homeowner’s Base Price (which CLT and Homeowner agree is $_______) plus interest at a rate of 1% compounded annually for years 1-5, 1.5% compounded annually for years 6-10, and 2% compounded annually thereafter.