DATE: January 28, 2020
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
Cannon River Community Land Trust Properties
Body
SUMMARY AND ACTION REQUESTED:
The Northfield Housing & Redevelopment Authority (HRA) to consider incentives to purchase land for homeowners of remaining land trust properties.
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 and also staffed the HRA. The HRA helped to create the CRCLT, which eventually received a separate 501 (c)3 status. Joel West became the Executive Director of the CRCLT, and at least 2 HRA members also became CRCLT 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 CRCLT with some seed money (amount is unclear) to get started and the CRCLT also received donations from area businesses.
Between 2000 and 2007, the CRCLT sold 13 units, some of which are twinhomes. In Maple Hills, the HRA built the units and sold them to the CRCLT, who in turn sold them to the CRCLT homeowner. The HRA received about $120,000 per unit in the Maple Hills complex from the CRCLT. This amount covered the building costs. The units were built with funds from Fannie Mae and a variety of other financing sources, including some levy dollars.
In 2008, as some of the homeowners decided to sell their units, the CRCLT 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 units. The CRCLT ...
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