Less-costly housing
Own the home but share the equity
November 17, 2006
Of all the strategies for producing more housing that working families can afford, the one that has so far received the least attention in these parts is the community land trust. But there's been a quiet grassroots movement in that direction, and now the Ford Foundation is entering the fray on Long Island. That's a healthy turn of events.
There's wide agreement that the Island needs both more single-family homes and more rental units. But there's a third way: shared equity. That's where land trusts come in.
A trust is a nonprofit organization that owns the land under houses it builds or acquires, sells houses at affordable prices and leases the land long-term to the homeowner. It keeps housing affordable by retaining part of the appreciation in the houses' value. This lets owners build equity and move up the housing ladder, without making an undue profit, and lets land trusts keep down prices for future buyers. The subsidy stays with the land, not with the owner.
Here, there's movement toward land trusts in such places as Southold, Bellport and Farmingdale, with a boost from a group called New Directions Community-Based Research Institute. On Monday, at the Milleridge Inn in Jericho, the institute is hosting an event that marks a significant turning point: It features a talk by George McCarthy, a senior program officer at the Ford Foundation.
The foundation wants to see shared-equity units increase from about a quarter of one percent of all units to about 25 percent nationwide. McCarthy says too many people think of land trusts as a funky, counterculture approach. Still, there are more than 200 land trusts in the country. In California, for example, the City of Irvine has opted for one, and there are early discussions in New York City. It's worth exploring as one strategy for increasing the affordability of housing, and the Ford Foundation's encouragement should help.
Copyright 2006 Newsday Inc.
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Community Land Trusts in Action, 2006
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Presented by
New Directions Community-Based Research Institute, Inc.
Monday, 8 a.m.-2:00 p.m.
November 20, 2006
Milleridge Inn, Jericho NY.
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8:00
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Registration & continental breakfast
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8:30
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Welcome: Chairperson, Michelle Di Benedetto
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Facilitator: Robert J. Mulvey, Executive Director
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8:45
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George McCarthy, Senior Program Officer in Development Finance and Economic Security, Ford Foundation
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CLT's must grow in capacity to fulfill a stabilizing role in regional sustainable development.
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9:30
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Michael Monte, Community Development Director, City of Burlington
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Twenty years of success in Burlington, VT: establishing a relationship between the City, CDA & the regional CLT
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10:00
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Coffee break
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10:15
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Regional Reflections
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Peter Elkowitz, CEO, Long Island Housing Partnership
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Bob Wieboldt, Exec. V.P. Long Island Builders Institute
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Joseph Quagliata, President and CEO, South Nassau Community Hospital
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Marian H. Russo, Esq., Executive Director, Village of Patchogue Community Development Agency
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11:15
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Feedback & Evaluation: O. Andrew Collver, Research Director
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11:30
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Questions & Answers: Robert J. Mulvey
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12:30
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Lunch
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Underwritten by Citibank Sponsored by Ridgewood Savings Bank
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