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• In expensive resort communities, where CLTs can provide housing for the <br /> community's workers. <br /> Benefits: <br /> - Provides permanent stock of affordable&workforce housing <br /> - Lowers housing cost <br /> - Provides some return of equity <br /> - Provides for deduction of mortgage interest payments <br /> - Provides financial stability(no fear of rent increase) <br /> - No cost to the county <br /> Issues: <br /> - Better for a household than renting, but not as good as traditional home <br /> ownership <br /> - Resale restriction limits ability of the owner to utilize full equity <br /> - Resale formula must be prepared carefully to provide some benefit to <br /> homeowner without making the house unaffordable for the next homebuyer <br /> - Mechanics of resales (direct sale or through CLT) are complicated and must be <br /> established upfront <br /> - Payment of ad valorem taxes and insurance are additional costs that an owner of <br /> a CLT home must incur that a renter does not <br /> Conclusion: <br /> A CLT is an effective method of providing affordable homeownership opportunities. <br /> Although CLTs are generally established by private non-profit groups, local governments <br /> usually assist non-profit housing groups which are willing to form CLTs. This assistance <br /> may involve providing technical assistance, providing surplus properties appropriate for <br /> affordable housing and others. <br /> RECOMMENDATION: <br /> The county should maintain Housing Element policy 4.10 for assisting non-profit housing <br /> organizations seeking to establish a CLT. <br /> BOARD OF COUNTY COMMISSIONERS ACTION: <br /> Board of County Commissioners Approval of the AHAC Recommendation <br /> Yes [i] No ❑ <br /> F:\Community Development\SHIP\AHAC-Affordable Housing Advisory Committee(AHAC)\AHAC 2017\AHAC 2017 2 6 <br /> report.doc <br />