Tag Archives: Proud Ground

Housing Affordability – Put a Bern on It

April 14, 2016

Bernie Sanders

Bernie Sanders speaking at the Moda Center on Aug. 9, 2015 to a crowd of 28,000. Most people don’t know that he helped to found one of the most evolutionary housing organizations in the nation. Photo by PlanGreen

Bernie Sanders is a housing affordability hero to a group of people in Burlington, VT.  As Mayor of Burlington, Bernie was able to get the city to seed the founding of the Burlington Community Land Trust (BCLT) with a $220,000 grant. Sanders was at first skeptical about the limited equity concept the BCLT promoted. But he came to see the Community Land Trust (CLT) as both a means of achieving permanent affordability as well as a new model of land tenure for America.  Now he admits that helping to found the BCLT was “the best thing I ever did as Mayor.”

Burlington Community Land Trust has since expanded into three counties around Burlington (Chittenden, Grand Isle and Franklin) and changed its name after its merger with an affordable rental non-profit in 2006 . It’s now the Champlain Housing Trust. With over $309 million in assets, CHT is the largest CLT in the nation. Its 2015 Annual Report shows that it owned 389 buildings (2227 units) of affordable rental housing, 33 commercial/industrial buildings and the land under 570 single family shared-equity homes. And it’s adding more units every year. This year, they are in process of developing another 160 permanently affordable units in a larger 700 unit development on the Burlington waterfront. In all, they control an impressive 7.6% of the Burlington area’s total housing stock.

How it works:

Champlain Housing Trust Image

Champlain Housing Trust is the largest Community Land Trust in the nation. It enables housing to be kept permanently affordable by holding title to the land under it. Image from CHT 2014 Annual Report.

Community Land Trusts are nonprofit organizations, with a board composed of representatives of the public, members of professions with technical expertise, and the tenants of the CLT. The CLT obtains land through a number of means (purchase, donations,  foreclosures, etc.) and removes it from the private, commodity speculative market. If there are not already buildings on the land, the CLT may build and either lease or sell the buildings with restrictive covenants. The CLT retains ownership of the land and sets a formula for shared equity as the properties appreciate. This formula is applied when the home on the property is sold.

As explained by Daniel Fireside writing in Dollars & Sense:  When a normal home is offered for sale on the usual terms, it does virtually nothing to make the overall housing market more affordable. A land trust home, by contrast, creates a permanently affordable property because the land it sits on is removed from the speculative market. Most of the appreciation is retained by the housing trust (and by extension, the community), rather than the individual. In this way the trust model creates a bridge between purely public and purely private property.

This limited equity model still allows a reasonable return. In Burlington, the 233 homeowners who have resold a CHT home have realized, on average, a 31% annualized IRR [internal rate of return]!  The model also allows the CLT to intercede in the case of a foreclosure. A study by the Lincoln Institute of Land Policy showed that, as of 2010, homeowners within a land trust were 10 times less likely to default on their homes than their private-market counterparts.

A New Model of Land Tenure

O'dell Apts So Burlington

Champlain Housing Trust holds the land under O’Dell Apartments in So. Burlington in permanent trust. Renters get a say in policies. Photo from Google Maps w/assistance from CHT’s Chris Donnelly.

The original impetus behind the CLT movement was to create a new institution to keep housing permanently affordable.  The first people I ever met living in a CLT in the 1980s were NOT low-income, rather middle-income professionals who saw the CLT as a better way to live while also making a statement that we need a new model of land tenure. I believe the CLT is the best tool for transforming our housing system.  By taking the land under housing off the private, commodity, speculative market, it helps to change the concept of housing from a commodity to be bought and sold for a profit. Instead it encourages us to see it as a social good that everyone needs and deserves.  Involvement in the CLT also gives both renters and homeowners a say in how properties are managed.  And it gives them a sense of community with all members of the CLT.

CLTs can work in both hot and cold markets.  John Davis, former Chair of the Board of the Institute for Community Economics¹ and now a CLT consultant, says in an interview he did for Democracy Collaborative with Steve Dubb in 2011:

Most housing and community development programs in the United States have been designed as if there is no business cycle. What community land trusts are particularly good at is preventing the loss of homes, homeowners, and public investment at both the top and the bottom of the business cycle. We run counter to the threats and dangers that a fluctuating economy imposes on low- and moderate-income people.

Proud Ground – The Portland Region’s Community Land Trust

Multifamily Woolsey Corner in the New Columbia area of Portland was developed as a Community Land Trust by Proud Ground utilizing Orange Splott as its builder. Photo courtesy of Orange Splott.

Multifamily Woolsey Corner in the New Columbia area of Portland was developed as a Community Land Trust property by Proud Ground utilizing Orange Splott as its builder. Photo courtesy of Orange Splott.

Proud Ground (a merger of Portland Community Land Trust and Clackamas Community Land Trust). It currently focuses on helping a limited subset of moderate-income people get into homeownership. (See Oregonian OpEd: One Way to Turn Moderate Income Portlanders into Homeowners by PG’s Diane Linn and Roger Henshaw). It has partnered with Bank of America to do an important study, Solving the Affordable Homeownership Gap that gives data about an out-of control housing market that is has largely been taken over by an investor class. To me, this study helps to demonstrate how unsustainable the current housing system is and why we need more systemic solutions than simply getting a few more people into such an anxiety-inducing system.  Nonetheless, Proud Ground has many ways to get involved in making housing more permanently affordable on its website.

Achieving Housing Affordability for the Long-Term

To achieve real housing affordability for all in the Portland region, we will need to move beyond promoting the Community Land Trust model solely for the moderate-income and solely for homeownership. We will need to take a cue from Champlain Housing Trust and push Proud Ground to serve both rental and owner properties and to gain far more foothold in the Portland area market.  It may be a long-term process, but we can take heart from the progress that Champlain Housing Trust has made in Burlington since 1984–nearly 8% of all housing.  Various levels of local, regional and state government and private foundations, institutions and individuals owning property will need to partner with Community Land Trusts to change our housing model.

Moda Center crowd, Aug. 9, 2015

People came from all over the region to fill the Moda Center while 9000 waited outside in the August heat. It will take this kind of enthusiasm to change our housing system! Photo by PlanGreen

Ultimately, changing our housing model won’t just happen in Burlington or in Portland. Although I do believe strongly that we all need to work for change from the bottom up, it will help greatly to have a supportive federal government to promote and achieve this concept nationwide.

Put a Bern on Housing Affordability²

Let Bernie know that you want him to promote the CLT model of housing affordability.

Let Bernie know that you want him to promote the CLT model of housing affordability.

There is already a National Community Land Trust Network (now Grounded Solutions Network) that has been bringing leaders from CLTs across the nation together to discuss issues and best practices in CLTs for many years.  They also push for policy change.  Intersections 2016 claims to be “the only national conference dedicated to permanently affordable housing and the creation and preservation of just, equitable and inclusive communities across the country and around the globe.” The conference is expected to draw more than 350 professionals to Park City, Utah, September 26-29, 2016.

Grounded Solutions Network is likely our best chance to help us understand and then achieve change that needs to happen at the federal level. Meanwhile, let Bernie know you want him to repeat “the best thing I ever did as Mayor” on a larger scale–for ALL OF US.  Let’s work to put a Bern on housing affordability.

 

Notes:

¹Founded in 1979, the Institute for Community Economics (ICE) pioneered the modern community land trust (CLT) model, Today ICE is a federally certified Community Development Financial Institution (CDFI) offering loans and more to create community land trusts. I worked for ICE in the 1990s.

²Most Portlanders will likely appreciate the take-off in my title on Portlandia’s “Put a bird on it.”  A national audience may not.

Many thanks to Chris Donnelly of Champlain Housing Trust for spending nearly an hour on the phone with me answering my questions.

Another article worth reading:  How Bernie Sanders Made Burlington Affordable  by Jake Blumbart in Slate Jan. 19, 2016.

Portland Region 2040 Vision–What’s Next?

April 4, 2016

“How do you think Metro should respond to the key issues and trends affecting the region’s ability to realize the vision of the 2040 Growth Concept?”  

I was asked this question recently and here’s what I said. . .

Since its inception in 1995, the 2040 Growth Concept has promoted compact, mixed-use, transit-oriented development in centers and corridors.  This has been central to shaping regional growth patterns, limiting sprawl and creating livable communities.  In fact, directing growth into centers & corridors has been the region’s primary strategy for preserving farms, forests and natural areas outside the Urban Growth Boundary.  Metro policymakers (and I myself) believe that compact development is the premier tool to address climate change, ensure equity, create jobs and protect the region’s quality of life.

I see three key trends that have only gotten stronger since 1995:

Trend 1: Walkable Urbanism Preference

Beaverton's Broadway Vision

Most cities in the region know that they must promote walkable urbanism–but sometimes their policymakers forget. This image is from Beaverton’s Civic Plan.

Boomers and Millenials both show a strong preference for “Walkable Urbanism.” Some suburban policymakers responses to Metro’s Climate Smart Communities (CSC) project shows that many of them are not aware that this first trend means that they should be focusing more of their infrastructure dollars towards “retrofitting suburbia” rather than building and widening roads. I worked hard to see that urban form/urban design was in the strategies tested in the CSC project (and indeed it tested at the top!), but many suburban policymakers would rather focus on electric vehicles and other technology for lowering tail pipe emissions. More needs to be done to alert them that their present course will potentially lead to stranded assets where there is little market left for suburban single-family homes that don’t provide the opportunity to walk to needed services and amenities.

Trend 2: Recognition That Inequality Hurts Us

There is a growing recognition of the unacceptable impacts of inequality (racial, social, financial).  Inequality impacts such issues as housing affordability, homelessness, displacement and even sprawl as people seek more affordable housing in towns outside the Metro Urban Growth Boundary.  Thanks to Bernie Sanders, financial inequality (the widening income gap) has become a chief topic of presidential debates and led to more discussion of the role that the Federal government should play. Meanwhile, Metro has attempted to address several aspects of inequality.

Equitable Housing Report

This report mentions Community Land Trust as a strategy. But it needs to become THE major strategy if we are to address housing costs for a 2040 workforce.

Regarding Metro’s Strategic Plan to Advance Diversity, Equity, and Inclusion Metro’s COO Martha Bennett said “the priorities are to learn more about best practices, apply equity plans to its service-delivery areas, improve community engagement and use equity as a measure of decision-making in spending money.” Any build out of the 2040 Growth Plan will need to address gentrification, displacement and contracting opportunities in an equity strategy that focuses on communities of color.

Metro has pursued affordable housing strategies for many years—the latest effort being the Equitable Housing Initiative headed up by Councilor Sam Chase. From Metro’s web site: The Initiative’s Report discusses a variety of tools that could help, including financial assistance for residents, renter protections against evictions and nonprofit community land trusts. . .

I agree that Metro should utilize the Community Land Trust model, but not just for the involuntarily low-income. I would like to see governments in the region, including Metro, promoting the CLT for ALL OF US.  The original impetus behind the CLT movement was to create a new institution to keep housing permanently affordable.  The first people I ever met living in a CLT were NOT low-income, rather middle-income people who saw it as a better way. Probably the local government that best understood its potential was Burlington, VT under then-mayor Bernie Sanders.  The City of Burlington under Sanders helped to support the formation of the Burlington Community Land Trust.  It’s now the Champlain Housing Trust, the largest CLT in the US and a model for local governments looking for systemic solutions.

Champlain Housing Trust Image

Champlain Housing Trust is the largest Community Land Trust in the nation. It enables housing to be kept permanently affordable by holding title to the land under both multifamily and single family homes–both rented and owned. Image from CHT 2014 Annual Report: http://www.getahome.org/learn-more/publications.

I believe the CLT is the best tool for transforming our housing system.  By taking the land under housing off the private, commodity, speculative market, it helps to change the concept of housing from a commodity to be bought and sold for a profit. Instead it encourages us to see it as a social good that everyone needs and deserves.

“By looking at housing as a fundamental human right rather than a market good that goes to the highest bidder, and with shrewd political organizing in a hostile environment, housing advocates in Burlington have created a sustainable model for affordable housing that deserves to be emulated across the country” says Daniel Fireside in Burlington Busts the Affordable Housing Debate.

The Portland region has a Community Land Trust, Proud Ground (formerly Portland Community Land Trust and Clackamas Community Land Trust). Personally, I feel that it is far too focused on home ownership rather than a mix of ownership and rental. Nonetheless, Metro should explore developing a relationship with it similar to that of Burlington and CHT.

Woolsey Corner in the New Columbia area of Portland was developed as a Community Land Trust by Proud Ground utilizing Orange Splott as its builder. Photo courtesy of Orange Splott.

Woolsey Corner in the New Columbia community of Portland was developed as a Community Land Trust by Proud Ground utilizing Orange Splott as its developer. Photo courtesy of Orange Splott.

For the shorter term, it should work with innovative housing developer Orange Splott, LLC and its network of other small  incremental developers in promoting more alternatives to conventional home ownership. Let me repeat, these alternatives should be marketed not just to “the poor” but to ALL OF US!  For Metro, this work could come under the banner of the Equitable Housing Initiative, but it needs to be larger than “affordable housing.” Rather it needs to focus on housing affordability involving ALL income levels.  In the long run, hopefully before 2040, such efforts by Metro will help to change the concept of housing from a commodity to a social good.

Trend 3: Need for Excellent Urban Design

Residents of existing neighborhoods will be far more supportive of new development when it includes excellent urban design encompassing:

  • appropriately scaled buildings
  • streets designed for walking, biking, pushing baby strollers. . .and even cars
  • neighborhoods with diverse uses
  • people of diverse incomes, class and ethnicity
  • sufficient parks and natural areas, protected streams, wetlands, and steep slopes
  • infrastructure for arts and culture

Metro might look into working with the Regional Arts and Culture Council to produce a toolkit to encourage every community in the region to integrate arts and culture. Transportation for America has produced a Creative Placemaking Handbook that could provide a good start.

Towards a Walkable Tigard

Tigard Mayor welcomes New Urbanist Jeff Speck for two days of talks and workshops on making Tigard, a suburban community in the Portland Metro area, more walkable. Photo by PlanGreen.

Members of the Congress for the New Urbanism have a great deal of expertise in excellent urban design.  Metro should continue to develop a partnership with the Portland-based non-profit National Charrette Institute, a leading affiliate and powerful voice within CNU. As presented at the New Partners for Smart Growth Conference by Council Member Craig Dirksen, the Investment Areas Approach with its Shared Investments Strategy  highlighted both the City of Tigard and the Tigard Triangle in the SW Corridor Investment Area. New Urbanists are having strong influence over Tigard’s redevelopment and this trend should be encouraged.

Metro is involved with connecting its natural area at Canemah Bluff with a riverwalk along the Willamette River.

Metro is connecting its natural area at Canemah Bluff with a riverwalk along the Willamette River. This will make Oregon City even more appealing as a place to live and work. Photo by PlanGreen.

Metro should continue its long-standing relationship with The Intertwine regarding the integration of parks and natural areas into developing centers and corridors. This coalitions of organizations have long been involved with implementation of Titles 3 and 13 of the 2040 Concept. It should consider expanding relationships with environmentally oriented organizations that represent communities of color (some of whom are in The Intertwine). As mentioned above in the inequality trend, any urban design efforts must take into account gentrification and displacement. They must also take into account inequitable air quality impacts.

What do you think about my three key trends re: implementing the 2040 Growth Concept–and my ideas on what Metro should do about them?  What are your ideas?