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A Community Land Trust for Pottstown

Steering CommitteeJerry Nugent, Kathy Phifer, Jason

Bobst, Judy Memberg, Dave Garner, Chris Huff, David

Jackson, Sue Repko

December 20, 2010

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What is a CLT?

A nonprofit model for:

Community involvement & partnerships

Increased homeownership

Neighborhood stabilization

Community gardens

Job creation

PA Housing Alliance: “Housing is economic development.”

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History of CLTs

Active in the U.S. since the 1970s

241 CLTs in 45 states

Over 5,000 CLT homes

There are 5 CLTs in PA:

State College, Philadelphia, Macungie, Bellefonte & Lehigh Valley

Lehigh Valley CLT received the 2010 Innovation Award from the PA Housing Alliance

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Pottstown’s Housing CrisisThe Cycle

Estimated 44% rental housing stock

Concentration of subsidized units

Lax code enforcement

Blighted properties

Wave of foreclosures*

Diminishing real estate values →increased property taxes → homeowner flight

* So far, 75+ properties went to banks in 2010 (excl. Hanover Sq.)

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How does a CLT work?

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Affordable Homeownership

A CLT owns property, rehabilitates buildings, then sells or leases buildings according to

community goals.

A CLT retains ownership of the land beneath the buildings.

A re-sale formula allows owners to build equity but keeps homes permanently affordable.

CLT stewardship promotes home maintenance & prevents foreclosure.

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Neighborhood Stabilization

CLTs continually engage with residents.

CLTs rely on partnerships to solve safety and code enforcement problems: Borough, Genesis Housing,

CPR/Neighborhood Watch.

CLTs do more than housing: community gardens can turn vacant lots into attractive, healthy and safe

communal spaces.

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A Vision for Old Chestnut Street

Playground

Before

After

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Economic Development

CLT can serve as land bank CLT can partner with County

Redevelopment Authority CLT can own, lease & sell commercial

property CLT can create job incubator, market

properties for artists, sell properties at market rates & more

CLTs create local construction jobs

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The experts have spoken

Current Pottstown planning documents support the principles behind a CLT:

• Creation of non-profit housing corporation

Increased homeownership

Increased housing choices

Stabilized neighborhoods

Enforcement of housing codes

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Technical MemorandumProgram Initiatives to Support

Core District Redevelopment Plan Urban Partners, March 2003

Combat disinvestment by:

improving code enforcement

helping renters become buyers

helping homeowners make repairs

encouraging multi-family conversions to single-family

establishing programs that are not income-restricted

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Pottstown Metropolitan Regional Comprehensive Plan, 2005

Housing is a basic element of a community’s economic health and growth.

• Maintain & promote revitalization of existing residential neighborhoods & villages.

Encourage pedestrian-oriented, residential neighborhoods that foster a sense of community.

Accommodate housing opportunities for a range of income levels & age groups.

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Pottstown Economic Development Strategic Plan, March 2008

by Gannett Fleming

Encourage revitalization of neighborhoods

Provide broad range of housing choices, including market rate, owner-occupied housing

Form non-profit Borough Housing Corporation to lead housing initiatives

Provide financial incentives & other support to encourage rehabilitation & homeownership

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Pottstown, PA: Transformation Strategies Urban Land Institute, October 2009

Expand market choices for new housing & revitalize existing housing

The creative class, households without children & other nonconventional households do not want to move into neighborhoods that are

beginning to decay, appear to be empty, or have the perception of crime.

An aggressive neighborhood stabilization partnership should be established immediately.

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Washington Street Neighborhood Action Plan Update (2010)

• Improve housing stock

• Reduce crime

• Revitalize deteriorated section of Pottstown

• Community building

• Development of affordable housing

• Education of consumers on housing & financial issues

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Genesis Housing Corporation

County-wide non-profit active in Pottstown

Rehabilitates housing

Provides financial counseling & homeownership for low/mod-income households

Excellent track record

Sale prices dictated by government funding regulations

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Genesis-CLT Partnership

Genesis to provide technical assistance to CLT

CLT to fill in gaps

rehab properties outside Genesis model

sell market-rate units, where possible

undertake commercial/economic development projects

provide opportunities for citizen involvement

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More Potential Partnerships Borough

School District

PAID/Chamber

Montgomery County

Genesis Housing Corp.

PDIDA

Montgomery County Community College

The Hill School

Health & Wellness Foundation

PMMC

Pottstown Arts & Cultural Alliance

Pottstown Garden Club

Pottstown SCORE

Buildings Industries Exchange/ACE mentor program

Faith communities

Financial institutions & local businesses

Real estate community

And more….

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A Community Land TrustFor Pottstown

Currently exploring formal partnership with Preservation Pottstown, an existing, local 501(c)(3).

By-laws include acquisition & ownership of properties; support efforts to improve residential, non-residential & public

spaces in Pottstown; support economic development activities.

CLT invited to next meeting on January 13, 2011 for formal presentation

National Community Land Trust Network provides free manuals, model ground leases, accounting manuals, on-line

courses & other field-tested resources

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Permanent CLT Board

The “classic” structure for a CLT Board of Directors includes:

• CLT homeowners (1/3)

Members of the community-at-large (1/3)

Representatives from community partners,

including local government (1/3)

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Nuts-and-Bolts

Site Control

Money

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Site Control

Having control of some properties in distressed areas is essential for stabilization & redevelopment.

Properties can come from:

Borough & County blighted inventory Sheriff’s sales Foreclosures

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Sources of FundingSeed money essential for initial,

high-visibility projects.

• Federal, state, county programs

Foundations

Local Financial institutions

Private donors

Fostering partnerships to bring more dollars to the community.

Some funds will revolve back to CLT as properties are sold & put back onto tax rolls.

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CLT & Taxes

Nonprofit does not mean “no taxes”! CLT is a problem-solving community

organization Several possibilities exist for taxing

limited-equity homes and CLT-owned land Responsible & equitable taxation method to be worked out in partnership with taxing

bodies

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Ultimate Goals

Put blighted properties back on tax rolls Increase homeownership

Increase community involvement Reduce crime

Create jobs Attract market-rate homeowners &

businesses back to Pottstown Improve fiscal outlook

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Next Steps

Community Land

Trust

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We need you…

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… to put the pieces together!

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POTTSTOWN COMMUNITY LAND TRUST

Dave Garner

Chris Huff

David Jackson

Sue Repko

www.PottstownCLT.wordpress.com

PottstownCLT@gmail.com