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The Third Way:

The Third Way:. Community Control Over Land. 2012 Spring Action BUILD A PLATFORM MOVE A MOVEMENT. Foreclosures, Evictions and Public Housing. Commons (Schools; buildings; parks; spaces). Corporate  Account-ability. Police Brutality. PLATFORM. Community Control Over Land

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The Third Way:

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  1. The Third Way: Community Control Over Land

  2. 2012 Spring ActionBUILD A PLATFORMMOVE A MOVEMENT Foreclosures, Evictions and Public Housing Commons (Schools; buildings; parks; spaces) Corporate  Account-ability Police Brutality PLATFORM Community Control Over Land Housing is a Human Right

  3. Defining the Problem Since 2007, 8 million households foreclosed. Recent projections estimate, 8-10 million more may join before the crisis ends. 5 million homeless people, 19 million people-less homes. Profit before People? How Did We Get Here?

  4. Defining the Problem “What has taken place was not only predictable, it is a consequence of the very structure of the housing system and financial system.” - Michael Stone, Professor of Economics University of Massachusetts

  5. Defining the Problem [INCOME INEQUALITY & DEBT] 1980 - 2012: flat wages for most, home prices up 188%, mortgage debt up 890%.

  6. Defining the Problem

  7. Defining the Problem [GOVERNMENT POLICIES] 1980s-’90s As savings dropped, • Housing finance moved from local Savings & Loans banks to Wall Street’s Capital Markets. • New financial instruments created to maximize profits for investors • Speculative homeownership heavily promoted by U.S. gov’t Growth of Sub-prime Industry: 1994: 5 in 100 mortgages were sub-prime 2006: 1 in 5 mortgages were sub-prime

  8. Defining the Problem [HOUSING AS SPECULATIVE COMMODITY] • Predatory practices were aided by the following rampant myths about speculative homeownership: • Owning a home is always a good investment • Homeowners are always better off than renters because they don’t have a landlord • Mortgage debt is different than other debt • The “American Dream” of owning a home is attainable to anyone willing to do a little hard-work and commit themselves

  9. Defining the Problem [HOUSING AS SPECULATIVE COMMODITY] In Reality, Only 20% of U.S. households own their homes outright (without a mortgage) 1 in 3of uscan’t afford housing costs & a conservative estimate of other basic essentials (e.g. food, medical care) - 25% homeowners, 50% renters.

  10. Defining the Problem

  11. Defining the Problem What’s next - Wall St. Landlords?

  12. What’s the Solution? Foreclosures, Evictions and Public Housing Commons (Schools; buildings; parks; spaces) Corporate  Account-ability Police Brutality PLATFORM Community Control Over Land Housing is a Human Right

  13. Bank; Corporation; Speculator; Homeowner Private Why Community Control

  14. Bank; Corporation; Speculator; Homeowner Private Why Community Control • 60% of all U.S. land • 80% of that is owned by the wealthiest 10%

  15. Bank; Corporation; Speculator; Homeowner Private Why Community Control • 60% of all U.S. land • 80% of that is owned by the wealthiest 10% • Only 20% of U.S. households own their homes outright (without a mortgage)

  16. Bank; Corporation; Speculator; Homeowner Private Why Community Control • 60% of all U.S. land • 80% of that is owned by the wealthiest 10% • Only 20% of U.S. households own their homes outright (without a mortgage) Government Center; Post Office; Library; Public Housing; Park Public

  17. Bank; Corporation; Speculator; Homeowner Private Why Community Control Community Control; Democratically Controlled Community Land Trust, Cooperative The Third Way Government Center; Post Office; Library; Public Housing; Park Public

  18. 2012 Spring ActionWhat about Community Land Trusts? What are Community Land Trusts? How might CLTs be used to institute and model “Community Control over Land”?

  19. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts?

  20. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • Non-profit tax-exempt (501c3) organizations

  21. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • Non-profit tax-exempt (501c3) organizations • With open, place-based memberships

  22. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • Non-profit tax-exempt (501c3) organizations • With open, place-based memberships (that can be empowered to democratically make decisions)

  23. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community. HOUSING LAND

  24. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community. • “What’s on top” can be a home, a building, a garden, anything! HOUSING LAND

  25. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community. • “What’s on top” can be a home, a building, a garden, anything! and is owned (with resale restrictions) by homeowners, non-profit rental co’s, even businesses. HOUSING LAND

  26. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community BOTTOM LINE? HOUSING LAND

  27. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • CLTs own land & monitor the re-sale process of “what’s on top” for purposes defined by the community BOTTOM LINE? Land can’t simply be sold to highest bidder on private market. HOUSING LAND

  28. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins What are Community Land Trusts? • 70% focus on an area greater than a single neighborhood • 95% of CLT ground leases are for 99 years, renewable • 59% of CLT units are rehabbed • 95% of CLTs lease to homeowners, 45% have rental HOUSING LAND

  29. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins How might CLTs be used to institute & model “Community Control over Land”? HOUSING LAND

  30. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins How might CLTs be used to institute & model “Community Control over Land”? • CLTs separate ownership of land and what’s on top of it (e.g. a home) HOUSING LAND

  31. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins How might CLTs be used to institute & model “Community Control over Land”? • CLTs separate ownership of land and what’s on top of it (e.g a home) • CLTs hold the land off the market, enabling a “put people first” check on the housing market. HOUSING LAND

  32. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins How might CLTs be used to institute & model “Community Control over Land”? • CLTs separate ownership of land and what’s on top of it (a home) • CLTs hold the land off the market, enabling a “put people first” check on the housing market. • CLTs can empower community through direct democracy & an open place-based membership structure HOUSING LAND

  33. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins How might CLTs be used to institute & model “Community Control over Land”? The board of the CLT is typically made up of three representatives of the following groups in equal part: HOUSING LAND

  34. 2012 Spring ActionThe Third Way: Community ControlTransformative Wins How might CLTs be used to institute & model “Community Control over Land”? The board of the CLT is typically made up of three representatives of the following groups in equal part: 1. Tenant/Leaseholder Representatives 2. Neighborhood Representatives 3. “Experts” and Community Leaders Because power is shared between these three groups, a set of checks and balances is able to prevent speculation. HOUSING LAND

  35. Third Way: Interim Proposal Model 1 Land: 501(c)3 Partner Land

  36. Third Way: Interim Proposal Model 1 • Land: 501(c)3 Partner • Restricts Resale • Owns land in perpetuity • Ground lease with community partnership Land

  37. Improvements: Democratic Community Partnership Third Way: Interim Proposal Model 1 • Land: 501(c)3 Partner • Restricts Resale • Owns land in perpetuity • Ground lease with community partnership Land

  38. Improvements: Democratic Community Partnership • Essential: • Resident(s) • General community members • Community organization(s) •  Important: • Property management partner • Resource partner • Other community organizations (Faith-based, Social Services, etc.) • Examples of Vehicles • 501(c)3, 501(c)2... Third Way: Interim Proposal Model 1 • Land: 501(c)3 Partner • Restricts Resale • Owns land in perpetuity • Ground lease with community partnership Land

  39. Third Way: Interim Proposal Model 2 Land: Democratic Community Partnership Land

  40. Third Way: Interim Proposal Model 2 • Land: Democratic Community Partnership • Restricts Resale • CLT owns land in perpetuity • Ground lease with homeowner, coop, non-profit... Land

  41. Improvements: Homeowner, Coop, Non-Profit Third Way: Interim Proposal Model 2 • Land: Democratic Community Partnership • Restricts Resale • CLT owns land in perpetuity • Ground lease with homeowner, coop, non-profit... Land

  42. Improvements: Homeowner, Coop, Non-Profit • Responsibilities: Taxes, repairs & improvements • Restrictions:  • Use (ex. owner must occupy, could require partnership decision making on major shifts) • Resale (limited or no equity) Third Way: Interim Proposal Model 2 • Land: Democratic Community Partnership • Restricts Resale • CLT owns land in perpetuity • Ground lease with homeowner, coop, non-profit... Land

  43. Third Way: Interim Proposal Model 3 Land: Democratic Community Partnership Land

  44. Third Way: Interim Proposal Model 3 • Land: Democratic Community Partnership • Restricts Resale • CLT owns land in perpetuity • Rent-Only lease with individual, non-profit or business Land

  45. Improvements: Rent Only Third Way: Interim Proposal Model 3 • Land: Democratic Community Partnership • Restricts Resale • CLT owns land in perpetuity • Rent-Only lease with individual, non-profit or business Land

  46. Improvements: Rent Only • No ownership stake - leases only the improvement • Direct control of land and improvements • But, could hire a management company or non-profit Third Way: Interim Proposal Model 3 • Land: Democratic Community Partnership • Restricts Resale • CLT owns land in perpetuity • Rent-Only lease with individual, non-profit or business Land

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