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■ In disinvested neighborhoods, where CLTs can be used to increase owner occupancy, decrease absentee ownership, improve the physical condition of housing, and stabilize the community. Such CLTs assist not only the buyers of the CLT homes, but also existing homeowners in the area, who likely are lower income families. ■ In expensive resort communities, where CLTs can provide housing for the community's workers. Benefits: - Provides permanent stock of affordable & workforce housing - Lowers housing cost - Provides some return on equity - Provides for deduction of mortgage interest payments - Provides financial stability (no fear of rent increase) - No cost to the county Issues: - - Better for a household than renting, but not as good as traditional home ownership - Resale restriction limits the ability of the owner to utilize full equity - Resale formula must be prepared carefully to provide some benefit to the homeowner without making the house unaffordable for the next homebuyer - Mech of resales (direct sale or through, CLT) are complicated and must be estab ' upfront - Pa f ad valorem taxes and insurance are additional costs that an owner of a CLT h ust incur that a ren oes not . Conclu" A CLT is an effec providin affordable homeownership opportunities. Although CLTs are gen ed by private non-profit groups, local governments usually assist non-profit ho groups which are willing to form CLTs. This assistance may involve providing technical tance, providing surplus properties appropriate for affordable housing and others, . The county should maintain Housing Element policy 4.10 to assist non-profit housing organizations seeking to establish a CLT. BOARD OF COUNTY COMMISSIONERS ACTION: Board of County Commissioners Approval of the AHAC Recommendation Yes [] No 0 28 63