DATE: December 17, 2019
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
Cannon River Community Land Trust Property Disposal
Body
SUMMARY AND ACTION REQUESTED:
The Housing & Redevelopment Authority (HRA) to consider a motion to require former Cannon River Community Land Trust (CLT) homeowners to purchase the land now owned by the HRA at the time of refinancing.
BACKGROUND:
History of the Cannon River Community Land Trust
In 1999, the City purchased 50 acres of land from Vern Koester for $500,000. Of this, 9 acres was paid for by the HRA for development of Maple Hills, a small mixed-income housing development, and 35 acres were for the creation of the soccer complex and storm water pond area. The HRA contributed $90,000 for their share of the land.
Joel West was the Community Development Director at that time, he also staffed the HRA. The HRA helped to create the CLT, which eventually received a separate 501 (c)3 status. Joel West became the Executive Director of the CLT, and at least 2 HRA members also became CLT Board members. All three of those people also retained their position with the City/HRA board.
According to the available documentation, the HRA provided the CLT with some seed money (amount is unclear) to get started and the CLT also received donations from area businesses.
Between 2000 and 2007, the CLT built 19 units and sold them all, some of which are twinhomes. In Maple Hills, the HRA built the units and sold them to the CLT, who in turn sold them to the CLT homeowner. The HRA received about $120,000 per unit in the Maple Hills complex from the CLT. The units were built with funds from Fannie Mae and a variety of other resources, including some levy dollars.
In 2008, as some of the homeowners decided to sell their units, the CLT was unwilling or unable to buy them back under the formula specified in the bylaws, due to the downturn in the market and lack of equity in the unit...
Click here for full text