Community land trust/ leasehold/ mortgage
From: Peter Scott (psak.planet.gen.nz)
Date: Wed, 9 May 2001 19:43:01 -0600 (MDT)
A recent thread  touched on CLTs. I looked up the topic on the archives 
(land?trust clt) and it seems CLTs have worked for preserving natural areas 
quite well and for the odd community with a shared bulk housing mortgage.
Are there any funding innovations occuring anywhere where banks will fund 
*individual* house loans on leased land?

In NZ the government has an obscure loan facility for Maori housing on 
collectively owned land. They  require (dont laugh) that the house be 
portable!, in the event that the borrower defaults.
Lateral social collateral is also starting to be talked about here, especially 
by ethical investment outfits, whereby peers guarantee loans, but usually only 
to small amounts.

--
Regards,

Peter Scott
Auckland New Zealand
Phone +64 9 832 4004 / 025 6240154
* Earthsong Eco-Neighbourhood  <http://www.ecohousing.pl.net/>
* EcoVillage Association NZ <http://www.converge.org.nz/evcnz/>


--------------------
Subject: Re: community land trust
Author: Michael John Omogrosso (omo [at] darkwing.uoregon.edu)
Date: 8 Apr 1996 09:41:41 -0500

...
> The community land trust seems such a good fit to our sustainability and
> housing goals. By removing the land from the speculative market place, a
> major market value appreciation piece is controlled. Resulting
> impedments to increased taxes should be realized.
>
> Ownership of structures remains the same with a 99 year renewable and
> inheritable land lease except that if resale occurs, the resale is
> contingent on respect for the land trust covenant and only purchase cost
> plus improvements, basically, used to calculate the selling price. It
> keeps owning a home affordable for a much broader range of society.

------------------
Subject: RE: land trust
Author: Rob Sandelin (Floriferous [at] classic.msn.com)
Date: 26 Jun 1998 09:15:16 -0500

Land trusts are a great way to keep land off the market rate real estate 
appreciation cycle.The downside is that financing may be much harder or 
impossible under such limitations.
Banks really don't like to finance homes they can't easily sell if they 
foreclose, and since you would not have clear title to the land under a land 
trust, only a lease, it would be that much  more less appealing to a bank.

However, some banks do have special loan programs targetted for low income 
families,   some states even require large banks to invest some small 
percentage in these programs. Check with your local bankers before committed to 
such a path.




_______________________________________________
Cohousing-L mailing list
Cohousing-L [at] cohousing.org  Unsubscribe  and other info:
http://www.communityforum.net/mailman/listinfo/cohousing-l

  • (no other messages in thread)

Results generated by Tiger Technologies Web hosting using MHonArc.