Inland Equity Community Land Trust ~ Plan Adelanto
Executive Summary ~
Plan Adelanto is the first property developed by Inland Equity Community Land Trust. It is on a 20 acre lot in San Bernardino County about 1,000 feet from Adelanto High School. The property is zoned for Residential Agricultural use. This permits us to develop one house per 5 acres. We are building one house and three ADU's currently. Phase One of the plan is to build the four homes and make them available to low to moderate income families. The families will complete a home ownership program and receive some education about the community land trust structure and equity sharing. Once completed we will we will begin Phase Two will be to split the property under California’s SB 9 rules and build four more homes.
Inland Equity Community Land Trust is a 501(c3) not for profit corporation. This is our first project to develop and steward affordable housing and other community assets in Riverside and San Bernardino counties. Inland Equity Community Land Trust provides a solution to inland residents who fall under HUD’s definition of “housing cost burdened” by harnessing the power of non-profit development, shared equity, subsidy retention and removing housing from the speculative market. Plan Adelanto has established Inland Equity Community Land Trust as part of the housing development industry. Currently, housing development in the Inland Empire is concentrated on the development of tract housing priced well out of the range of most residents who live here. The build out costs for these developments runs at approximately $135 per ft2. Rents in the Inland Empire exceed the break-even point by 24% at $126 ft2 , according to CBRE. This means most people who work in the Inland Empire cannot afford to live in the areas where they work and have to make long commutes or live with multiple families under one roof.
Plan Adelanto ~
Phase One:
Community Land Trust and the Section 32 Homeownership Plan ~
Currently, Inland Equity Community Land Trust is working with housing organizations who provide homeownership education that will assist low income people qualify for existing programs like HUD's Section 32. Programs that may be used to assist low-income residents with subsidizing down-payment, closing costs, homeowner counseling, below-market financing, and mortgages. Residents will obtain a loan to purchase the house and Inland Equity Community Land Trust will retain ownership of the land and the equity that comes from government subsidies and non-profit fundraising. The resident will become homeowners and build equity based on what they contribute to the purchase and share in the appreciation of the market price. They will be able to pass on the home to their children. If they sell the house, they will keep the equity they earned and Inland Equity Community Land Trust will use the rest of the equity from subsidies and fundraising will stay with the home, which will be used to subsidize the price for the new resident. This structure will keep the home permanently below market rate.
Phase Two:
In the future we will build another 4 units after using SB 9 to split the lot. California’s SB 9 will permit the lot to be split into at least two 10 acre lots without any further entitlements once the first set of homes are occupied.
Property Details and External Links:
Address:
9595 Mojave Drive, Adelanto, California 92301
Land Value: 206,732 (2014 sale price)
Acreage: 20.00
Tax Status: ASSESSED BY COUNTY
Zoning: RL-10
Zoning Desc: Rural Living-10 Acre Minimum
County Land Use Services office URL: http://cms.sbcounty.gov/lus/Home.aspx
Additional County Parcel Resources
https://sbcounty.maps.arcgis.com/apps/MapSeries/index.html?appid=f5a50c44766b4c36a3ae014497aa430d
Supporters:
- LULAC
- UDW
- IE Labor council
- Starting Over Inc.
- Coachella Valley Teachers Association
- Central Labor Council
- Clínicas Salud de Pueblo
- UU Church of Riverside
- Bayanihan
- Sigma Beta Xi
- IE Labor council
- Catholic Charities
- ACLU
- Interfaith Alliance
- Starting Over Inc
- Leadership Counsel
- Riverside All of Us or None
Financing sources:
As a 510(c)(3) charitable organization, Inland Equity Community Land Trust can generally leverage public sector investment with private tax-deductible contributions.
- Foundation grants.
Community foundations, family foundations, and larger grantmaking foundations with an interest in affordable housing. While a few provide ongoing, unrestricted operating funds, foundations usually tie their grants to specific outcomes or programs. The California Community Foundation, for example, recognized how rapidly rising land costs were eroding its ability to support affordable housing in the Los Angeles region and founded the Community Foundation Land Trust. Its contribution of $3.8 million can be used for operations and initial projects.
- Individual donations.
We aim to develop direct ongoing fundraising in our community. Although time-consuming, these generate significant revenue and and these funds can be used to develop capital. Some small Community Land Trusts, such as the Community Land Trust Association of West Marin (CLAM) in Point Reyes Station, raise the majority of their annual operating budgets from individual donations.
- Revenues from Project Development
The majority of Community Land Trusts collect fees for each unit of affordable housing they help to develop. Development fees may be structured as a flat amount per unit or as a percentage of total development costs. The City of Madison, for example, allows the Madison Area CLT to take a developer fee of up to 15 percent of a project’s total costs.
- Ground lease fees.
A Community Land Trust’s ground lease fees are its most reliable revenue source. While a few CLTs now charge as much as $100 per month, these fees tend to be in the $25–50 range, set well below the market value of the leasehold to keep the homes affordable. Even at this low price, however, with multiple properties in the portfolios can realize significant operating revenues from this source. Thistle Community Housing in Boulder, for example, reports that ground lease fees averaging $30 a month on its 211 resale-restricted, owner-occupied units cover almost a third of the cost of running the program.
- Lease reissuance/resale fees.
Many Community Land Trusts collect fees when units change hands, using these revenues to defray the costs of managing the transfer. In some cases, the fee is charged to the sellers, reducing their proceeds in the same way a broker’s commission would. In other cases, the fee is added to the resale price, increasing the cost of the home to the next buyer.
- Membership dues.
Area residents who support the Community Land Trust generally pay annual membership dues ranging from $1 to $50. With more than 4,000 members, the Champlain Housing Trust in Burlington collects over $70,000 in membership fees annually, covering about 5 percent of its operating budget.
Private Foundation Funding Housing in Southern California:
- The H.N. and Frances C. Berger Foundation
- Bank of America Foundation
- Annenberg Foundation
- Coeta and Donald Barker Foundation
- Max and Victoria Dreyfus Foundation
- John Jewett & H. Chandler Garland Foundation
- Gannett Foundation
- J.B. and Emily Van Nuys Foundation
- Wells Fargo
- Kresge Foundation
- Butler Family Fund
- California Community Foundation
- Conrad N. Hilton Foundation
- Kaiser Permanente Foundation
- Parsons Foundation
- Local Initiatives Support Corporation
- United Way
California State and Federal Funding for Housing:
California’s Proposition 1 authorized $4 billion in general obligation bonds for housing-related programs, loans, grants, and projects and housing loans for veterans. The measure was designed to distribute the bond revenue as follows:
- $300 million for the Local Housing Trust Matching Grant Program, which offers matching grants to local housing trust funds for "pilot programs to demonstrate innovative, cost-saving approaches to creating or preserving affordable housing;" and
- $300 million for the Self-Help Housing Fund, which provides forgivable loans for mortgage assistance, the development of multiple home ownership units, and manufactured homes.