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the community. Such CLTs assist not only the buyers of the CLT homes, but also <br />existing homeowners in the area, who likely are lower income families. <br />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 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 homeowner <br />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 may <br />involve providing technical assistance, providing surplus properties appropriate for affordable <br />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 [*+/] No ❑ <br />61 <br />28 <br />