Homelessness & Neighbors Investing in Community

I posted this OP about homelessness earlier: http://www.democraticunderground.com/10022294296



What are your thoughts about the approach outlined in this Yes! Magazine article from July 2012, to both prevent and address homelessness ourselves, as communities?

Cheaper Together: How Neighbors Invest in Community

Cooperative financing and community land trusts keep rents affordable and homeownership within reach.

A community land trust is one type of “shared equity homeownership,” where the rights, responsibilities, risks, and rewards of ownership are shared between an income-eligible household and an organizational steward. In exchange for the initial subsidy, which allows them to buy the home for a below-market price, owners agree to limits on how much they can sell the house for—balancing asset-building with ongoing affordability.

While most CLTs develop new housing, about a third have buyer’s-choice programs that allow homebuyers to select an existing home to be brought into the land trust. When CLTs sell houses, they retain ownership of the land underneath and give the buyers a 99-year ground lease.

Beyond helping lower-income families become homeowners—and preserving the affordability of these homes for the next generation—the CLT enters into an agreement with homeowners to support their ongoing success. A recent study revealed that during the worst years of the mortgage meltdown, conventional homeowners were 10 times more likely to find themselves in a foreclosure proceeding than CLT homeowners.

Another type of shared equity home-ownership is the limited equity cooperative (LEC). LECs make ownership affordable to lower-income households, who buy shares in land and buildings owned by the cooperative housing corporation and hold a secure lease for a particular unit. The co-op’s members accept restrictions on the resale price of their units, ensuring that the public investment in affordability is maintained.