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AGENDA
TEMECULA PLANNING COMMISSION
REGULAR MEETING
COUNCIL CHAMBERS
41000 MAIN STREET
TEMECULA, CALIFORNIA
SEPTEMBER 4, 2024 - 6:00 PM
CALL TO ORDER: Chair Bob Hagel
FLAG SALUTE: Commissioner Gary Watts
ROLL CALL: Hagel, Ruiz, Solis, Turley-Trejo, Watts
PUBLIC COMMENT
A total of 30 minutes is provided for members of the public to address the Commission on matters not
listed on the agenda. Each speaker is limited to 3 minutes. Public comments may be made in person at
the meeting by submitting a speaker card to the Commission Secretary. Speaker cards will be called in
the order received. Still images may be displayed on the projector. All other audio and visual use is
prohibited. Public comments may also be submitted by email for inclusion into the record. Email
comments must be received prior to the time the item is called for public comments and submitted to
PlanningCommission@temeculaca.gov. All public participation is governed by Council Policy
regarding Public Participation at Meetings adopted by Resolution No. 2021-54.
CONSENT CALENDAR
All matters listed under Consent Calendar are considered to be routine and all will be enacted by one
vote. There will be no discussion of these items unless members of the Commission request specific
items be removed from the Consent Calendar for separate action. A total of 30 minutes is provided for
members of the public to address the Commission on items that appear on the Consent Calendar. Each
speaker is limited to 3 minutes. Public comments may be made in person at the meeting by submitting a
speaker card to the Commission Secretary. Speaker cards will be called in the order received. Still
images maybe displayed on the projector. All other audio and visual use is prohibited. Public comments
may also be submitted by email for inclusion into the record. Email comments must be received prior to
6:00 p.m. and submitted to PlanningCommission@temeculaca.gov. All public participation is governed
by Council Policy regarding Public Participation at Meetings adopted by Resolution No. 2021-54.
1. Minutes
Recommendation: Approve the Action Minutes of August 21, 2024
Attachments: Minutes
Page 1
Planning Commission Agenda September 4, 2024
2. Director's Hearing Summary Report
Recommendation: Receive and File Director's Hearing Summary Report
Attachments: Memorandum
RITSINFRS
Members of the public may address the Commission on Business items that appear on the agenda. Each
speaker is limited to 5 minutes. Public comments may be made in person at the meeting by submitting a
speaker card to the Commission Secretary. Speaker cards will be called in the order received. Still
images maybe displayed on the projector. All other audio and visual use is prohibited. Public comments
may also be submitted by email for inclusion into the record. Email comments must be received prior to
the time the item is called for public comments and submitted to
PlanningCommission@temeculaca.gov. All public participation is governed by Council Policy
regarding Public Participation at Meetings adopted by Resolution No. 2021-54.
3. Receive and File Presentation on Community Land Trusts, Regional Housing Trusts, and
Housing Trust Fund (At the Request of Planning Commissioner Bob Hagel), Haide Urias
Recommendation: Receive and File
Attachments: Agenda Report
Community Land Trusts - Local Housing Solutions
COMMISSIONER REPORTS
COMMISSION SUBCOMMITTEE REPORTS
COMMUNITY DEVELOPMENT DIRECTOR REPORT
PUBLIC WORKS DIRECTOR REPORT
ADJOURNMENT
The next regular meeting of the Planning Commission will be held on Wednesday, September 18, 2024,
at 6:00 p.m., in the Council Chambers located at 41000 Main Street, Temecula, California.
NOTICE TO THE PUBLIC
The full agenda packet (including staff reports and any supplemental material available after the original posting
of the agenda), distributed to a majority of the Planning Commission regarding any item on the agenda, will be
available for public viewing in the main reception area of the Temecula Civic Center during normal business
hours at least 72 hours prior to the meeting. The material will also be available on the City's website at
TemeculaCa.gov. and available for review at the respective meeting. If you have questions regarding any item on
the agenda, please contact the Community Development Department at (951) 694-6444.
Page 2
Item No. 1
ACTION MINUTES
TEMECULA PLANNING COMMISSION
REGULAR MEETING
COUNCIL CHAMBERS
41000 MAIN STREET
TEMECULA, CALIFORNIA
AUGUST 21, 2024 - 6:00 PM
CALL TO ORDER at 6:00 PM: Chair Bob Hagel
FLAG SALUTE: Commissioner Adam Ruiz
ROLL CALL: Hagel, Ruiz, Solis, Turley-Trejo, Watts
PUBLIC COMMENT
The following individual(s) addressed the Commission:
• Rocky Hale (Items #2, #3, and #4) • Jim Collins (Items #2, #3, and #4)
CONSENT CALENDAR
1. Minutes
Recommendation: Approve the action minutes of August 7, 2024
Approved the Staff Recommendation (5-0): Motion by Ruiz, Second by Turley-Trejo. The vote
reflected unanimous approval.
PUBLIC HEARING
2. Planning Application No. PA23-0438, a Development Plan for Village A of the Altair Specific
Plan to allow for 146 detached single family and duplex homes and one (1) park (APNs:
940-310-013, 940-310-015, 940-310-016, 940-310-045, 940-310-046), Scott Cooper
Recommendation: Adopt a resolution entitled:
PC RESOLUTION NO. 2024-15
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF TEMECULA APPROVING PLANNING APPLICATION NO.
PA23-0438, A DEVELOPMENT PLAN FOR 146 DETACHED
SINGLE FAMILY AND DUPLEX HOMES AND ONE (1) PARK
LOCATED WITHIN VILLAGE A OF THE ALTAIR SPECIFIC PLAN
(APNS: 940-310-013, 940-310-015, 940-310-016, 940-310-045,
940-310-046), AND MAKING FINDINGS OF CONSISTENCY WITH
THE ENVIRONMENTAL IMPACT REPORT AND DETERMINING
THAT NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED
PURSUANT TO SECTION 15162 OF THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT
Approved the Staff Recommendation (4-0, Hagel absent): Motion by Ruiz, Second by Watts.
The vote reflected unanimous approval with Hagel absent.
3. Planning Application No. PA23-0439, a Development Plan for Village B of the Altair Specific
Plan to allow for 109 detached single family and duplex homes and one (1) park (APNs:
940-310-044, 940-310-045, 940-310-046, 940-310-047, 940-310-048), Scott Cooper
Recommendation: Adopt a resolution entitled:
PC RESOLUTION NO. 2024-16
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF TEMECULA APPROVING PLANNING APPLICATION NO.
PA23-0439, A DEVELOPMENT PLAN FOR 109 DETACHED
SINGLE FAMILY AND DUPLEX HOMES AND ONE (1) PARK
LOCATED WITHIN VILLAGE B OF THE ALTAIR SPECIFIC PLAN
(APNS: 940-310-044, 940-310-045, 940-310-046, 940-310-047,
940-310-048), AND MAKING FINDINGS OF CONSISTENCY WITH
THE ENVIRONMENTAL IMPACT REPORT AND DETERMINING
THAT NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED
PURSUANT TO SECTION 15162 OF THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT
Approved the Staff Recommendation (4-0, Hagel absent): Motion by Ruiz, Second by Watts.
The vote reflected unanimous approval with Hagel absent.
4. Planning Application No. PA23-0440, a Development Plan for Village C of the Altair Specific
Plan to allow for 45 buildings containing 212 attached rowhomes (APNs: 940-310-013,
940-320-002), Scott Cooper
Recommendation: Adopt a resolution entitled:
PC RESOLUTION NO. 2024-17
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF TEMECULA APPROVING PLANNING APPLICATION NO.
PA23-0440, A DEVELOPMENT PLAN FOR 45 BUILDINGS
CONTAINING 212 ATTACHED ROWHOMES AND ONE (1) PARK
LOCATED WITHIN VILLAGE C OF THE ALTAIR SPECIFIC PLAN
(APNS: 940-310-013, 940-320-002), AND MAKING FINDINGS OF
CONSISTENCY WITH THE ENVIRONMENTAL IMPACT REPORT
AND DETERMINING THAT NO FURTHER ENVIRONMENTAL
REVIEW IS REQUIRED PURSUANT TO SECTION 15162 OF THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Approved the Staff Recommendation (4-0, Hagel absent): Motion by Ruiz, Second by Watts.
The vote reflected unanimous approval with Hagel absent.
COMMISSIONER REPORTS
COMMISSION SUBCOMMITTEE REPORTS
COMMUNITY DEVELOPMENT DIRECTOR REPORT
PUBLIC WORKS DIRECTOR REPORT
ADJOURNMENT
At 7:50 PM, the Planning Commission meeting was formally adjourned to Wednesday, September 4,
2024, at 6:00 PM, City Council Chambers, 41000 Main Street, Temecula, California.
Bob Hagel, Chair
Matt Peters, Interim Director of Community Development
Item No. 2
CITY OF TEMECULA
COMMUNITY DEVELOPMENT DEPARTMENT
PLANNING DIVISION
MEMORANDUM
TO: Planning Commission Chair and members of the Planning Commission
FROM: Matt Peters, Interim Director of Community Development
DATE: September 4, 2024
SUBJECT: Director's Hearing Summary Report
Community Development Director's Agenda item(s) for August.
Date
Case No.
Proposal
Applicant
Action
August 15, 202
PA24-0081
A Resolution of the Interim Director of Community
Amanda
Development of the City of Temecula approving
Fritscher
APPROVED
Planning Application No. PA24-0081, a
DH RESOLUTION
Conditional Use Permit for a sports and
N0.2024-03
recreational facility to operate Monday through
Sunday from 5:00 AM to 7:00 PM at an existing
building located at 42095 Zevo Drive, Units A4
and A5, and making a finding of exemption under
section 15301 of the California Environmental
Quality Act (CEQA) guidelines (APN 921-680-
003)
Attachments: Action Agendas
ACTION AGENDAS
ACTION AGENDA
TEMECULA COMMUNITY DEVELOPMENT
DIRECTOR'S HEARING MEETING
AUGUST 15, 2024 -1:30 PM
TEMECULA CITY HALL
COUNCIL CHAMBERS
41000 MAIN STREET
TEMECULA, CALIFORNIA
CALL TO ORDER at 1:30 PM: Matt Peters, Interim Director of Community Development
PUBLIC COMMENTS — None
Item No. 1 1:30 PM
Project Number:
Project Type:
Project Title:
Applicant:
Project Description
Location:
Environmental Action:
Project Planner:
ACTION:
PA24-0081
Conditional Use Permit
West Coast Training Center and Lionheart Studios CUP
Amanda Fritscher
A Conditional Use Permit for a sports and recreational facility to operate
Monday through Sunday from 5:00 AM to 7:00 PM at an existing
building.
42095 Zevo Drive, Units A4 and A5
Categorically Exempt
Section 15301, Class 1, Existing Facilities
Yannin Marquez, Case Planner
APPROVED BY INTERIM DIRECTOR OF COMMUNITY
DEVELOPMENT MATT PETERS
ADJOURNMENT: The meeting was adjourned at 1:45 PM
Item No. 3
STAFF REPORT — PLANNING
CITY OF TEMECULA
PLANNING COMMISSION
TO: Planning Commission Chair and members of the Planning
Commission
FROM: Matt Peters, Interim Director of Community Development
DATE OF MEETING: September 4, 2024
PREPARED BY: Haide Urias, Housing Analyst
SUBJECT: Receive and File Presentation on Community Land Trusts, Regional
Housing Trusts, and Housing Trust Fund (At the Request of Planning
Commissioner Bob Hagel)
BACKGROUND SUMMARY
Planning Commissioner Bob Hagel requested staff to provide information on Community Land
Trusts and Housing Trusts as relates to the provision of affordable housing. In consideration of
this request, Staff reached out to Western Riverside Council of Governments (WRCOG) to
research the status of its Regional Housing Trust Initiative. This staff report provides an
overview and comparison of Community Land Trusts (CLT), Regional Housing Trusts (RHT),
and Housing Trust Funds (HTF) to assist the Planning Commission in understanding the key
differences between these housing -related initiatives.
The City is committed to providing affordable housing and as a result there are currently seven
hundred eighty-one (781) affordable units housing low-income families, seniors, workforce
individuals and families, not including the one hundred twenty-one (121) units currently in
building plan review and construction. The City has a certified Housing Element approved by the
California Department of Housing and Community Development (HCD), which includes enough
vacant land zoned appropriately to accommodate our assigned Regional Housing Needs
Assessment (RHNA) number of 4,193 units. In addition to the certified Housing Element, the
City adopted a Permit Ready Accessory Dwelling Unit (ADU) program to facilitate additional
housing opportunities. City staff will also be bringing forth an ordinance package to implement
Housing Element Programs. These programs will help contribute to the total number of
affordable units, which includes workforce housing and attainable housing.
Currently, the City has two projects that are similar to the Community Land Trust model. The
Habitat for Humanity project will be an attainable homeownership program for low-income
families and Las Haciendas is a one hundred (100%) percent affordable housing apartment
complex with seventy-seven (77) units available to low-income families. Habitat for Humanity
Inland Valley, Inc. is a non-profit affordable housing developer that has worked with the City of
Temecula to acquire land on Pujol Street in Old Town Temecula. They will build single family
homes to provide families the opportunity of attainable homeownership. The homes will remain
affordable for forty-five (45) years. Habitat for Humanity will be funding this project through
various funding sources to ensure this homeownership development is available to low-income
families long-term. Las Haciendas is a seventy-seven (77) unit affordable housing apartment
complex built by Community HousingWorks (CHW), a non-profit affordable housing developer
and operator, in Uptown Jefferson. This project is completely occupied, and providing housing
that is attainable to the workforce community, low-income families, and individuals. Community
HousingWorks worked with the City to acquire the land and received local and state funding to
ensure the project remains affordable for a term of fifty-five (55) years. In both instances, the
City provided land and funding to a non-profit organization for preservation of affordable
housing by rent -restricting the units. The CLT and RHT concept are additional tools for the City
to consider using to extend the affordability of these units for more than fifty-five (55) years.
This report aims to clarify their respective functions, structures, and benefits. Affordable housing
is a pressing issue in our city and exploring various housing strategies is essential to ensure
housing stability for all residents. CLTs and RHTs are two distinct approaches to promoting and
furthering affordable housing, each with unique characteristics and purposes. As for the Housing
Trust Fund (HTF) this is a funding mechanism created by the U.S. Department of Housing and
Urban Development (HUD) that provides grants to states to produce and preserve affordable
housing. The Housing Trust Fund can be a potential a funding source for an established CLT or
RHT.
Community Land Trusts (CLTs):
1. Purpose:
• CLTs are 501(c)3 nonprofit organizations that acquire and hold land to develop and
maintain affordable housing units for low-income individuals and families.
• Their primary mission is to provide long-term affordable housing and protect the
community's interests by maintaining control over the land. This model is more sustainable
for the longer -term preservation and rehabilitation of units.
2. Ownership Structure:
• CLTs typically separate ownership of the land from ownership of the housing units. The
CLT retains ownership of the land while allowing homeowners or other operators to
own/rent the structures.
3. Governance:
• CLTs are governed by a board of directors, which often includes community members,
residents, and representatives with expertise in housing and finance.
4. Funding:
• CLTs can access a variety of funding sources, including grants, donations, and low -
interest loans, to acquire and develop affordable housing.
N
5. Local Focus:
• CLTs primarily operate within a specific geographic area, focusing on serving the
immediate community's housing needs.
Regional Housing Trusts (RHTs):
1. Purpose:
• RHTs are collaborative organizations that pool resources and funds from multiple
municipalities and stakeholders to address housing issues at the regional level.
• They aim to create a more comprehensive and coordinated approach to affordable
housing.
2. Ownership Structure:
• RHTs do not own land or housing units directly. Instead, they facilitate funding, policy
advocacy, and coordination among member jurisdictions and organizations.
3. Governance:
• RHTs are governed by a board of representatives from member cities, counties, nonprofit
organizations, and other stakeholders. Decision -making often involves multiple jurisdictions.
Currently, WRCOG is recommending a nonprofit/Joint Powers Agreement variation model.
4. Funding:
• RHTs rely on contributions from member jurisdictions, grants, and partnerships to
support regional housing initiatives.
5. Regional Focus:
• RHTs address housing challenges across multiple jurisdictions, emphasizing regional
collaboration to tackle affordable housing issues more comprehensively.
Comparison of CLTs and RHTs:
• CLTs are localized entities focused on land ownership and housing development within a
specific community, while RHTs take a regional approach, addressing housing challenges
across multiple jurisdictions.
• CLTs typically own and manage housing units directly, while RHTs facilitate
coordination and funding for affordable housing projects but do not own the housing
themselves.
• CLTs often emphasize community engagement and control, while RHTs emphasize
regional collaboration and policy advocacy.
• CLTs secure funding through a variety of sources, including grants, donations, and loans
whereas RHTs rely on contributions from member jurisdictions.
3
Conclusion:
The City may consider both Community Land Trusts and Regional Housing Trusts as potential
tools to address the City's affordable housing needs. As a member of WRCOG, staff will
continue to monitor the Regional Housing Trust Initiative. City staff will reach out to CLTs
currently in operation and conduct more research on this topic. City staff will continue to track
funding sources at the state level that are tied to CLTs and RHTs.
ATTACHMENTS: Community Land Trusts - Local Housing Solutions — Published May
11, 2021, localhousingsolutions.org
4
On this page
Overview
Approach
Eligibility
The local role
Other considerations
Examples
Related resources
�r
Community land trusts
This brief is appropriate for:
Housing Market Condition: Soft Markets, Strong Markets
Administering Agency: Department of Housing and/or Community Development
Published: May 11, 2021
n
Overview
Community land trusts (CLTs) are mechanisms for creating affordable
homeownership units and maintaining the units as affordable over the
long-term.
Traditionally, CLTs achieved and maintained affordability by retaining
ownership of the land and requiring the homebuyer to purchase only the
home that is situated on the land. While many CLTs continue to operate this
way, others ensure affordability instead through other affordability
mechanisms, such as deed covenants. CLTs are generally managed by a
nonprofit or quasi -governmental organization and governed by a body
comprised of purchasers of CLT homes, members of the public, and
governmental and nonprofit stakeholders to ensure they remain grounded in
the needs of the community. CLTs typically maintain long-term affordability
by building resale conditions into the long-term ground lease that
accompanies purchase of the structure. The ground lease generally includes
a formula that is used to establish the price of the home at resale and
provisions that limit resale to income -eligible families and give the CLT a
purchase option when the home is put up for sale. Resale formulas vary from
one CLT to another and typically reflect a balance between the goals of
preserving long-term affordability of the CLT units and allowing the
homeowner to build wealth. Homeowners build wealth in two ways: through
the forced -savings gained by paying down the principal balance of their
mortgage and through the share of home price appreciation allocated to
them under the resale formula.
This section describes some of the considerations for communities
interested in developing a community land trust.
Approach
CLTs provide a mechanism for creating affordable homeownership
opportunities and maintaining affordability over the long term. The CLT
accomplishes these goals by (a) making homeownership units affordable
through the use of a subsidy (or another mechanism such as
inclusionary zoning) that brings down the initial purchase price of the units to
qualified buyers and then (b) maintaining long-term affordability to future
purchasers through a legally binding mechanism, such as a long-term ground
lease or a deed covenant.
The CLT is a form of shared equity homeownership. Other forms
include deed -restricted homeownership (/housing-policy-library/deed-
restricted-homeownership/) and limited equity cooperatives (/housing-
policy-libra ry/limited-equity-cooperatives/). Shared equity homeownership is
an approach to homeownership that balances the dual goals of maintaining
the long-term affordability of homes to future home purchases and allowing
purchasers to build wealth through homeownership. For more information on
shared equity homeownership, including a discussion of the continuum of
strategies under this umbrella, explore these Shelterforce Z and Joint Center
for Housing Studies Z resources. (Opinions differ L'� on whether a fourth
policy, shared appreciation mortgages (/housing-policy-library/shared-
appreciation-mortgages/), should be considered a form of shared equity
homeownership since it focuses on recapturing and preserving the buying
power of public subsidies to help future buyers, rather than on preserving the
affordability of specific homes.)
CLTs purchase, or are granted, land within a community to steward for
affordable housing. This land may or may not already have existing
structures. In some cases, CLTs are involved in the development of homes for
the program. The sites owned by the CLT may be contiguous, grouped
together in one or more areas, or distributed on a scattered -site basis
throughout the community. The housing can be single-family homes,
multifamily buildings, or individual units within a multifamily building.
Typically residents are homeowners, but a CLT could also lease their land for
affordable rental housing, depending on the project and community needs.
The CLT manages its land holdings as affordable housing for the community
in perpetuity. Under the traditional CLT model, the land trust maintains
ownership of the land and leases it out for affordable housing uses. This is
typically done by selling the structure (whether a single-family home or a unit
in a multifamily building) to an eligible buyer, along with a long-term ground
lease (typically 99 years) that specifies (among other things) the terms under
which the home may be sold to the next purchaser. Under this model,
purchasers own the building (or attached unit) and lease the land from the
CLT. Purchasers are often individual homeowners, but can also be co-
operatives or non-profit housing organizations or developers. As owners of
the land, the land trust maintains a degree of control over initial and
subsequent uses. These rights include an option to repurchase the buildings
when the owner wishes to sell, control over the resale price, and limits on
eligible future purchasers and the use of the building or unit. Owners
typically pay a monthly ground lease fee which covers administrative costs
and costs associated with the property ownership (such as property taxes).
The fee can also fund a long term property repair reserve. Most ground lease
fees are low; often fees are less than $100 per month and sometimes as low
as $1 per year.
Although a long-term ground lease coupled with sale of the building is the
traditional, and most common, approach used by CLTs to maintain long-term
affordability, there are also variations on the typical model. In one newer
variation, the land trust sells the land and property as a package, and
maintains long-term affordability through deed covenants or other
restrictions. This method is particularly useful in multi -family buildings, where
the CLT purchases one or more units but does not own the entire building. In
other cases, the CLT may choose to provide a long-term lease for both the
land and the building, instead of selling the building.
CLTs also stipulate a resale formula that determines the sales price of the
property in the case of a sale. The formulas are typically structured to
balance the community need for affordable homes with the opportunity for
homebuyers to build wealth through homeownership. Common types of
formulas are "indexed formulas" and "shared appreciation formulas." Indexed
formulas use economic indicators, such as the area median income, wages,
or consumer prices, to determine the home's sales price. These indices
typically provide a more accurate reflection of families' purchasing power
than changes in home values. Shared appreciation formulas calculate a sales
price by adding some percentage of the home's value appreciation to the
original sales price. Consider, for example, a homeowner who purchases a
CLT home for $200,000. If the market value of an equivalent home increased
by $40,000 during the period of ownership, and the CLT utilizes a shared
appreciation model that allows the owner to keep one -quarter of the home
price appreciation, the sales price would be set at $210,000 (the initial
$200,000 purchase prices plus one -quarter of the $40,000 appreciation).
CLTs are usually non-profit or quasi -government organizations with a specific
board structure. Boards are typically made up of a combination of three
types of community members: purchasers of CLT homes (or other occupants
of CLT-owned properties), the general public (to represent future
purchasers), and public representatives (for example government officials,
funders and non-profit leaders in the community). By balancing the voices of
these groups, the CLT holds itself accountable to the full community. Some
CLTs are part of an existing organization, for example a local foundation or
other community non-profit.
CLTs generally rely on grant funding to provide the subsidy that allows units
to be made available to home purchasers at below -market levels. Common
sources of grant funding include local government funds or allocations of
federal sources like CDBG and HOME funds, as well as foundations and local
philanthropy. Some CLTs aim to maintain the long-term affordability of
homeownership units made affordable through inclusionary zoning,
density bonuses or other local affordability incentives or requirements. In
such cases, the affordable units become part of the CLT, while the market -
rate units remain unfettered and capable of generating revenue to help
cross -subsidize the affordable units. As the CLT's portfolio grows, many
programs generate revenue by collecting ground lease fees or membership
fees that allow them to sustain their operations.
Many CLTs offer ongoing support to home purchasers. These programs can
include homeownership classes and resources for property maintenance and
improvement. They can also include financial education or coaching
programs. Owners of CLT homes, as mentioned above, also often play a
leadership role in the management of the CLT.
Eligibility
CLTs generally place limits on the incomes of home purchasers and define an
"affordable" home for their communities based on local conditions and
priorities. Many CLTs require homebuyers to have incomes that are no greater
than 80 percent of the area median income (AMI). This is particularly true for
projects where federal funds are used where this is the maximum permissible
income. However, different programs set different limits. For
example, Community Home Trust 0 in Orange County, North Carolina,
restricts homebuyers to incomes between 80 and 115 percent of AMI.
Some CLTs give preference to families who work in the community. Other
programs target first time homebuyers (typically defined as having not
owned a home in the previous 3 years). Most CLTs also require homebuyers
to attend a homebuyer education (/housing-policy-library/housing-
education-and-counseling/) course or financial education class prior to
purchasing a home, which they may offer directly or in partnership with a
local non-profit organization.
Purchasers of CLT homes may also be subject to other restrictions. For
example, the ground lease often stipulates that the purchaser cannot sublet
the property and must maintain the structure to a certain standard. If these
conditions are not met, the CLT can find the purchaser in violation of the
lease.
The local role
Local governments can be instrumental in developing CLTs and work closely
with existing CLTs in their community to promote and preserve affordable
homeownership opportunities. Some communities have
adopted inclusionary zoning ordinances (/housing-policy-libra ry/inclusionary-
zoning/), which incentivize or require developers to develop affordable
housing in the course of developing market -rate units. In communities with
these programs, the new affordable units may be designated to a local CLT to
manage, such as in Chicago. Local governments can also prioritize CLTs for
allocations of local funds and federal funds that the community allocates,
such as HOME and CDBG funds. In addition, local governments can help to
publicize CLT homes when working with potential homebuyers and fund
homeownership education and counseling.
Other considerations
Like most other homebuyers, homebuyers in a CLT need to qualify for a
mortgage. In order to do so, they need to meet underwriting requirements,
which often include credit score thresholds and income verification.
Underwriting a mortgage on a CLT property can be challenging for lenders,
who may not be familiar or comfortable with the financial structure. Many
CLTs maintain relationships with lenders and local loan officers so that they
can direct interested homebuyers to lenders who have experience with the
land trust model.
Examples
Champlain Housing Trust CJ in Vermont (formerly Burlington Community
Land Trust) is the largest community land trust in America, with
approximately 565 ownership units and over 2,200 rental units. The land trust
offers shared equity programs to potential homebuyers, as well as ongoing
support to residents through homeowner education, financial counseling,
and loan programs for rehab and energy efficiency improvements.
First Homes U Community Land Trust in Rochester, MN supports affordable
homeownership in the Rochester area. The CLT has significant support from
The Rochester Area Foundation and from the Mayo Clinic, the area's largest
employer. The board structure of First Homes differs from other community
land trusts in that the foundation plays a significant role, a topic discussed in
this case study Z. First Homes is also a member of the Minnesota Community
Land Trust Coalition Z, which supports ten community land trusts
throughout the state.
The Chicago Housing Trust Z (formerly Chicago Community Land Trust) is a
nonprofit organization that works very closely with the city to preserve long-
term affordability for homes created through City programs. The mayor
appoints board members with City Council consent and the city provided
staff and funding during the land trust's early years. The organization
maintains long-term affordability through deed restrictions which last for 99
years rather than through a traditional ground lease. The organization also
provides pre- and post -purchase workshops for homeowners and works with
local lenders and lawyers to help facilitate successful purchase of the units in
the program.
Related resources
• With funding from the Housing Solutions Lab, a team of researchers at
the University of Utah, Kansas State University, and Queens College, NY
studied whether community land trusts can function as a path to
homeownership for immigrants. They conducted qualitative case studies
of immigrant -inclusive CLTs (https:Hlocalhousingsolutions.org/wp-
content/uploads/2023/09/Final-version_-CLT-Executive-Summary-
2023.pdf) and developed a database of CLTs Z overlaid with information
about immigration patterns and Welcoming City status in the U.S. This
research uncovers opportunities and provides examples for cities to
develop inclusive housing models that address the economic, linguistic,
and other barriers that immigrants may face.
• Burlington Associates provides a number of informative documents and
tools in its Community Land Trust Resources Z website. Presentations,
information sheets and interactive tools cover topics like: Community
Land Trusts 101, choosing a resale formula, developing and marketing
land trust homes, and funding CLTs. The e-book Starting a Community
Land Trust Z is also available.
• Grounded Solutions L'� is a national network that provides support for
Community Land Trusts and other forms of shared equity
homeownership. Their CLT Start -Up Hub Ci provides resources for
organizations interested in developing a new CLT, including suggested
activities for each step along the path from idea to implementation.
• This 2020 interview Z with Tony Picket, CEO of Grounded Solutions,
explores how CLTs can be used to advance racial and economic justice.
• This article from Zoning and Planning Law Report Ei outlines how local
governments can develop and work with community land trusts to
preserve affordable homeownership. The article highlights community
land trusts in Chicago and Irvine, both of which were started by local
government. It also provides recommendations for localities on starting
city-wide CLTs.
• Street Level Advisors' Comparing Shared Equity Resale Formulas Z tool
was designed to help community leaders understand the relative
performance of different shared equity resale formulas. This tool allows a
side -by -side comparison between several models and allows the user to
change these input assumptions to immediately see changes in the
relative performance of each of the models in terms of both ongoing
affordability and equity building for homeowners.
• Under the Lens: Community Ownership Takes Center Stage
Shelterforce (July 2021), Shelterforce launched an article series to
explore how community land trusts, limited -equity housing cooperatives,
and other models of community ownership are changing. The series
includes profiles of individual local housing initiatives, including a
description of a Community Land Trust in Durham, NC Ci, and analysis of
recent innovations in community ownership, such as the viability of using
the community land trust model to preserve the affordability of limited -
equity co-ops Z.