Item 4- Austin_Housing_CLT_Pref_Policy_CDC_6_9_26 — original pdf

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Austin Housing_Community Land Trust | CDC Meeting 6.9.2026 ‹#› Community Land Trust • Community Land Trust Model • Austin Comunity Land Trust ⚬ Program Design (ACLT) ⚬ Preference Policy ⚬ Current Portfolio • Future Development ‹#› Austin Community Land Trust Model What is a Community Land Trust? A Community Land Trust is a unique Home purchase allowing residents to invest in their homes without the overwhelming financial burden. • Best known for permanently affordable housing, though the first CLT (New Communities Inc.) began as a collective farm founded by Black families in Georgia etsablished in 1969 • Land held in trust for community benefit, protected from market pressures. • Flexible structure — CLTs may be created by community groups, nonprofits, coalitions, or government agencies. ‹#› Community Land Trust Model Benefits of Community Land Trusts (CLTs) • Keep housing permanently affordable, allowing lower-income households to stay in neighborhoods where prices are rising. • Preserve public investment by recycling the initial affordability subsidy through resale restrictions, rather than losing it after one buyer. • Provide strong homeowner support, resulting in significantly lower delinquency and foreclosure rates compared to the private market. ‹#› Community Land Trust Model CLTs are one type of shared-equity housing, along with: • Deed-restricted inclusionary housing • Some forms of Down Payment Assistance Do CLT Homeowners Build Assets? Yes. CLTs support asset building for households who would otherwise remain renters. Because CLT homeowners receive support and maintain homeownership longer, they are more likely to realize meaningful equity gains. Research shows CLT owners build enough equity through mortgage paydown, modest appreciation, and lower housing costs to transition into the open market if they choose. ‹#› Administered by the Austin Housing Finance Corporation (AHFC), the ACLT portfolio was doubled in 2020 with the acquisition of 20 former rental homes. The portfolio is on track to more than double again in the next 5 years with the development of two new construction townhome communities by the ACLT. Austin Community Land Trust Model How is Austin Community Land Trust (ACLT) Unique? • Municipal owned and goverened by AHFC • Geographically diverse • ACLT a preference policy to ensure equitable housing and reduce displacement of Austin residents. ‹#› Austin Community Land Trust Model Enabling legislation: Community land trusts were formally authorized in Texas through Senate Bill 402, which created Local Government Code Chapter 373B, effective January 1, 2012. City of Austin CLT Ordinance: Austin designates and recertifies community land trusts through City Council ordinance, following Local Government Code Chapter 373B. Ordinance 20120524-020 established the process for recognizing qualified CLTs and granting property-tax exemptions; subsequent ordinances continue annual recertification of eligible CLTs. Previously Designated/ Certified CLTs: Guadalupe Neighborhood Development Corporation Austin Revitalization Authority Blackland Community Development Corporation ‹#› Preference Policy – Program Design • Program Design 2018: City Council Resolution No. 20180308-010 directed the City Manager to propose a preference policy that relates to the distribution of affordable housing units for low- and moderate-income households based on generational ties to the City. The proposed policy must be designed to further the City's obligation to affirmatively further fair housing and should include a method to prioritize the waitlist for programs and resources, such as homeownership and rental assistance programs, for low- and moderate- income households who are displaced. The policy should also be based on household size. ⚬ Applies to 50% of units when ≤2 units are available and 40% when 3+ units are available. Preference Policy Pilot implemented through the Austin Community Land Trust (ACLT) in 2020. ‹#› Preference Policy – Program Design 3 Main Components of the Preference Policy The preference policy includes preferences for household size, disability, and three types of preferences related to generational ties and displacement. • Disability: applies to accessible units. Households with disabled members will receive priority for units with disability modifications. ⚬ Applies to all accessible affordable unit • Household Size: a household whose square footage requirements for sleeping areas based on the Property Maintenance Code are equal to or are less than the size of the available housing unit. • Generational Ties & Displacement¹: the following preferences address the topics of generational ties and displacement of low- to moderate-income (LMI) households: ‹#› Preference Policy – Program Design *Suggested maximum occupancy limits. If a development is subject to other occupancy requirements, the Policy will defer to other federal, state, or governmental regulations. *Policy allows for smaller household sizes to buy a unit with more bedrooms after marketing. ‹#› ACLT Portfolio Snapshot • 16 properties built/renovated and sold in 2015/2016 • 20 homes in a HACA portfolio purchase renovated and sold 2020- Present • 4 new builds through development agreements • 2 new ACLT developments (63 new units) • +/- 4 additional expansion prospects in AHFC land inventory ‹#› ACLT Future Developments (Under Construction) Willows Crossing • Acquired 2.7 acres using GO Bonds • Council District 2 • 38 units, 1-3 BR units • 12 fully accessible units • $185k-$249k sales prices ‹#› Willows Crossing ‹#› ACLT Future Developments (Under Construction) Doris & Hathaway • Acquired 1.23 acres with GO Bonds • Council District 4 • 25 units, 1-3 BR units • 3 fully accessible units • $184k-$248k sales prices ‹#› Doris & Hathaway 13 ‹#› Austin Community Land Trust Model Future Considerations ⚬ Pipeline of Ready Buyers ￭ Supporting Community Partners: ⚬ Housing Counseling Agencies ⚬ Partner Lenders ￭ Affirmative Marketing ⚬ Stewardship & Monitoring ⚬ ⚬ ⚬ ⚬ ⚬ ⚬ ⚬ ⚬ ‹#› Questions? ‹#›