TITLE
Recommendation to adopt Specifications No. RFP DV23-186 and award a contract to Social and Environmental Entrepreneurs (SEE), of Calabasas, CA, as a fiscal sponsor for Long Beach Residents Empowered (LiBRE), of Long Beach, CA, for grant funding to establish a Community Land Trust, in a total amount not to exceed $800,000, for a period of two years; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Social and Environmental Entrepreneurs (SEE), acting as a fiscal sponsor on behalf of Long Beach Residents Empowered (LiBRE), for grant funds to establish and operate a Community Land Trust. This grant will serve as seed funding for LiBRE to launch a Community Land Trust and identify additional operational, housing acquisition, and/or development funding to increase the supply of affordable housing in the community.
Community Land Trusts are non-profit, community-based organizations designed to ensure community stewardship of land. While there are various Community Land Trust models in existence providing rental properties, homeownership opportunities, and even commercial and green spaces, the fundamental mechanism that allows for securing affordable housing is by having Community Land Trust own the land and lease it to individuals who live in the homes built on it. These ground lease agreements typically last 99 years and include an affordability covenant. Related to homeownership, Community Land Trusts generally utilize a unique resale formula intended to balance the interests of present homeowners with the long-term affordability goals of the Community Land Trust. Resale formulas may use economic indicators such as the area median income, wages, or consumer price index to determine the home’s sales price.
The Community Land Trust will also determine the income groups they aim t...
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