City Of Lakes Community Land Trust

CREATING COMMUNITY OWNERSHIP THAT PRESERVES AFFORDABILITY AND INCLUSIVITY IS THE MISSION OF THE CITY OF LAKES COMMUNITY LAND TRUST.

BY YEAR-END 2021 THE CLCLT HAD ASSISTED ANOTHER 31 NEW HOUSEHOLDS ACHIEVE CLCLT HOMEOWNERSHIP IN MINNEAPOLIS, BRINGING THE TOTAL NUMBER OF HOMES IN TRUST (VIA GROUND LEASE AND DEED RESTRICTIONS TO 340). THE 31 NEW HOUSEHOLDS IN 2021 WAS 11 HOUSEHOLDS FEWER THAN IN 2020. THE CLCLT BELIEVES THE CHALLENGES CREATED BY SIGNIFICANT INCREASES IN HOME VALUES IN MINNEAPOLIS WAS THE LARGEST DRIVER IN THE DROP IN HOUSEHOLDS SERVED. MANY CLCLT HOMEBUYER INITIATED PROGRAM (HIP) BUYERS WERE UNABLE TO FIND HOMES THEY COULD AFFORD THROUGH THE PROGRAM IN 2021. AT THE SAME TIME, THE CLCLT HAS BEEN THE RECIPIENT OF NUMEROUS AMERICAN RESCUE PLAN ACT (ARPA) FUND COMMITMENT FROM THE CITY OF MINNEAPOLIS THAT WILL ACTUALIZE AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES IN 2022 AND 2023. IN ADDITION TO THE 340 "HOMES IN TRUST" AT YEAR-END 2021, THE CLCLT ALSO MAINTAINS FOUR RENTAL PROPERTIES, THE CLCLT OFFICE BUILDING, AND SEVERAL ADDITIONAL PROPERTIES UNDER DEVELOPMENT IN MINNEAPOLIS ALL WHICH ARE OWNED BY THE CLCLT. EACH OF THESE PROPERTIES WILL REMAIN PERPETUALLY AFFORDABLE WITH NO OR VERY LITTLE ADDITIONAL AFFORDABILITY INVESTMENTS NEEDED EVER AGAIN. AS OF YEAR-END 2021 THE CLCLT HAD ALSO FACILITATED A TOTAL OF 106 RESALES. IT'S IMPORTANT TO NOTE THAT ESSENTIALLY NO NEW PUBLIC INVESTMENTS WERE NEEDED TO CREATE THE AFFORDABILITY FOR THE 106 RESALES DUE TO THE LONG-TERM AFFORDABILITY MECHANISM BUILT INTO THE COMMUNITY LAND TRUST. THOSE RESALES REPRESENT 106 LOW- AND MODERATE-INCOME HOUSEHOLDS WHO WERE ASSISTED INTO HOMEOWNERSHIP WITHOUT THE CLCLT NEEDING TO RAISE ADDITIONAL FUNDS TO KEEP THE HOMES AFFORDABLE DESPITE RAPIDLY RISING HOME VALUES IN MINNEAPOLIS. ON MARCH 11, 2020, THE WORLD HEALTH ORGANIZATION DECLARED THE OUTBREAK OF A CORONAVIRUS (COVID-19) PANDEMIC. THE CLCLT NAVIGATED THE BALANCE OF 2020 ON A WEEK-BY-WEEK BASIS FROM THAT POINT FORWARD. AS THE STATE OF MN TIGHTENED SOCIAL DISTANCING RULES, THE CLCLT SPENT APPROXIMATELY THREE WEEKS IN MAY ALLOWING ONLY ONE STAFF PERSON IN THE OFFICE AT ANYTIME AND CLOSED THE OFFICES TO ANY VISITORS. THE CLCLT ASSUMED THE WORST OF THE PANDEMIC AND IMMEDIATELY PUT ORGANIZATIONAL AND FINANCIAL CONTINGENCY PLANS IN PLACE ASSUMING POTENTIAL STAFF REDUCTIONS AND STRICT MEASURES. FORTUNATELY, THOSE MEASURES WERE NOT NEEDED. THE COVID-19 PANDEMIC AND THE FINANCIAL CHALLENGES TIED TO IT EXTENDED THROUGH 2021. OVER THE 20+ MONTHS SINCE THE BEGINNING OF THE COVID PANDEMIC IN MARCH 2020, THE CLCLT HAS MAINTAINED OFFICE HOURS FOR THE COMMUNITY WHILE PROVIDING A SAFE WORKING ENVIRONMENT. THE CLCLT HAS OPERATED WITH 2-5 STAFF IN THE OFFICE AT ANY GIVEN TIME SINCE JUNE 2020. SOME STAFF HAVE NEEDED TO MAINTAIN WORKING FROM HOME FOR HEALTH AND FAMILY REASONS. CONSTRUCTION COSTS HAVE CONTINUED TO GO UP SIGNIFICANTLY OVER INCREASES THAT WERE ALREADY FELT IN 2020. BOTH CONSTRUCTION LABOR AND MATERIALS ARE SIGNIFICANTLY HIGHER THAN A YEAR AGO, WHICH WERE HIGHER THAN LABOR AND MATERIAL COSTS THE YEAR BEFORE. IT IS ESTIMATED THAT IT COSTS CLOSE TO $100,000 MORE TO CONSTRUCT A HOME NOW THAN IT DID ONLY TWO YEARS AGO. ADDING ADDITIONAL STRESSES TO THE AFFORDABLE HOMEOWNERSHIP SECTOR, PUBLIC FUNDERS HAVE BEEN RELUCTANT TO INCREASE THE PER UNIT AFFORDABILITY OR DEVELOPMENT GAP SUBSIDY AT A LEVEL SIMILAR TO THE INCREASES IN THESE COSTS. FOR THESE REASONS, THE CLCLT CONTINUES TO BE CAUTIOUS ABOUT TAKING ON DEVELOPMENT PROJECTS WITHOUT AMPLE GAP RESOURCES RAISED TO ENSURE THE HOMES ARE PRICED AFFORDABLY AT TIME OF THE COMPLETION. DUE TO THESE INCREASES IN COSTS, THE CLCLT AND ITS PARTNER IN THE HARRISON TOWNHOME PROJECT ARE STILL FUNDRAISING FOR THE INCREASED CONSTRUCTION GAPS. IN 2021, THE CLCLT RECEIVED SIGNIFICANT FUNDING COMMITMENTS FROM THE CITY OF MINNEAPOLIS VIA ARPA FUNDING TO REHAB A BUILDING LOCATED AT 628 EAST FRANKLIN, FOR THE HOMEBUYER INITIATED PROGRAM (HIP) AND FOR ITS PROJECT: SUSTAINED LEGACY (P:SL) PROGRAM. THE CLCLT HAS YET TO SEE FINALIZED FUNDING AGREEMENTS FOR THESE COMMITMENTS, BUT ANTICIPATES RECEIVING THEM IN EARLY 2022.IN 2021 THE CLCLT SPONSORED OVER 30 CLCLT ORIENTATIONS. THE NUMBER OF ATTENDEES AT THESE SESSIONS HAS REMAINED RELATIVELY HIGH. THE ABILITY TO PROVIDE ORIENTATIONS VIRTUALLY HAS ALLOWED THE CLCLT TO OFFER ORIENTATIONS WITHOUT LIMITING THE NUMBER OF ATTENDEES DUE TO SPACE RESTRICTIONS. THROUGH THESE OUTREACH OPPORTUNITIES, THE CLCLT ESTIMATES IT WAS ABLE TO INFORM OVER 1,700 HOUSEHOLDS ABOUT THE COMMUNITY LAND TRUST MODEL AND CLCLT HOMEOWNERSHIP OPPORTUNITIES IN 2021. ADDITIONALLY, THE CLCLT CONTINUES TO MEET WITH HOMEBUYERS VIRTUALLY, PRESENT TO NEIGHBORHOODS AND SOCIAL/HUMAN SERVICE PROVIDERS, AND OTHER STAKEHOLDERS ABOUT HOMEBUYER OPPORTUNITIES IN THE COMMUNITY AND THROUGH THE CLCLT WAY OF HOMEOWNERSHIP.THE CLCLT IS CURRENTLY STAFFED BY 7.0 FTE EMPLOYEES. THE IMPACT OF COVID SIGNIFICANTLY REDUCED THE NUMBER OF VOLUNTEERS THE CLCLT WAS ABLE TO UTILIZE THROUGHOUT THE YEAR. THE CLCLT ESTIMATES APPROXIMATELY 30 DIFFERENT INDIVIDUALS WORKED WITH OR VOLUNTEERED WITH THE CLCLT. IT IS ESTIMATED THAT THOSE INDIVIDUALS CONTRIBUTED APPROXIMATELY 200+ VOLUNTEER HOURS TO THE CLCLT IN 2021. THE MAJORITY OF THOSE HOURS WERE CONTRIBUTED VIRTUALLY.

2021 WAS A PRODUCTIVE YEAR FOR THE COMMERCIAL LAND TRUST INITIATIVE (CLTI). THE CLTI INCORPORATED AS PARTNERSHIP IN PROPERTY COMMERCIAL LAND TRUST (PIPCLT) IN THE SUMMER OF 2021. SHORTLY THEREAFTER, PIPCLT APPLIED FOR ITS 501C3 STATUS. IT ALSO WAS A RECIPIENT OF ONE SIGNIFICANT GRANT ($2 MILLION) AND SEVERAL OTHER SIZABLE GRANT INVESTMENTS. THESE GRANTS ACCOUNT FOR THE VAST MAJORITY OF THE REASON CLCLT INCOME EXCEEDED THE 2021 BUDGET BY MORE THAN 100%. SEVERAL OF THE PIPCLT FUNDERS AUTHORIZED THE CLCLT TO TRANSFER THOSE AWARDS TO PIPCLT IN ADVANCE OF THEM SECURING THEIR 501C3 STATUS. AT YEAR-END 2021, PIPCLT ACQUIRED ITS FIRST COMMERCIAL PROPERTY LOCATED AT 1819 LOWRY AVENUE. THAT PROPERTY IS SOLELY OWNED BY PIPCLT. OTHER PURCHASE OFFERS MADE VIA THE CLCLT IN 2021 WILL BE ACQUIRED BY THE PIPCLT ENTITY IN 2022.

CITY OF LAKES COMMUNITY REALTY LLC (CLCR), A MINNESOTA LIMITED LIABILITY NONPROFIT COMPANY. CLCR WAS FORMED TO FACILITATE LAND TRUST RESALES, PURCHASE, AND SELL RESIDENTIAL REAL ESTATE ON BEHALF OF CLCLT, AND REPRESENT REAL ESTATE TRANSACTIONS OF PARTNER ORGANIZATIONS PROVIDING AFFORDABLE HOME OWNERSHIP. THE ACTIVITIES ARE SUPPORTED PRIMARILY FROM COMMISSIONS ON REAL ESTATE SALES.