COMMITTEE SUBSTITUTE FOR ORDINANCE NO.
220867title
Sponsor(s): Councilmember Parks-Shaw, Ellington, Fowler and Bough
Directing the City Manager to issue a Request for Proposals (RFP) to select a consulting firm to assist the City with the establishment of a Kansas City, Missouri Community Land Trust.
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WHEREAS, the City of Kansas City, Missouri is committed to supporting the development of permanently affordable housing and expanding opportunities for homeownership; and
WHEREAS, the City faces a number of housing challenges, including access to affordable housing for very low to moderate-income residents, a shortage of public resources for affordable housing, and maintaining long-term affordability; and
WHEREAS, a Community Land Trust is a nonprofit corporation that typically holds legal title to land in trust for the community for the primary purpose of creating and preserving permanently affordable homeownership opportunities for very low to moderate-income individuals and families who are kept out of the traditional homeownership market; and
WHEREAS, the CLT model of homeownership divides property ownership between individuals, who hold title to the home, and the CLT, which holds title to the underlying land; and
WHEREAS, the CLT enters into long-term (typically 99-year), inheritable, renewable ground leases with income-eligible homebuyers for the exclusive use of CLT land; and
WHEREAS, the CLT ground leases place restrictions on the resale of subsidized homes to ensure they will be resold to other limited income households at affordable prices as established by a resale formula; and
WHEREAS, the resale formula in a CLT ground lease determines the homeowner's profit on resale, balancing the competing goals of providing a fair return on the homeowner's housing investment and preserving long-term affordability; and
WHEREAS, the CLT approach to homeownership helps very low to moderate-income indi...
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