Community Land Trust Covington, Louisiana

1. COMMUNITY LAND TRUST
ONLINE ORIENTATION
PUTTING THE DREAM OF HOMEOWNERSHIP WITHIN REACH

2. NORTHSHORE HOUSING
INITIATIVE
We are a 501(c)(3) private nonprofit corporation. The NHI business
model and funding are dedicated to the purchase of land assisting
moderate income homebuyers and providing for the long-term
affordability of workforce housing in St. Tammany Parish.
We are on open-membership
organization with a 9-person board
of directors and a full time staff.
We are one of more than 200
community land trusts nation-wide
and 4 in Louisiana.

3. THE PROBLEM: NEED FOR
WORKFORCE HOUSING
- Population growth
in St. Tammany
- More service workers
- Land price escalation

4. SOLUTION: SHARED EQUITY MODEL
HOMEBUYERBENEFITS
Below market rate purchase price.
Safe loans with low fixed
rate financing.
Tax advantages of ownership.
Lower monthly housing cost.
Membership in a
homeowner community.
COMMUNITY BENEFITS
Expanded options for
moderate income homeownership.
Community land trust
conserves land.
Resale restrictions
preserve workforce housing.
Vital service workers can
afford to live and work in the Parish.

5. “I have always dreamed of owning
my own home one day. Summit
Funding, a Rural Development
Guaranteed Loan and Northshore
Housing Initiative land purchase
subsidy with God’s grace and a lot
of hard work made the dream come
true.”
~ Gena Richardson
(985) 246-7050
www.northshorelandtrust.org
NHI Homebuyer Testimonial

6. NHI ELIGIBILITY
- Majority Age - must be 18.
- Citizen of USA or registered alien.
- Creditworthy - pre-qualified by
St. Tammany Homeownership
Center or NHI mortgage lending
partner:
Household Size Income Maximum
1 $33,600
2 $38,400
3 $43,200
4 $48,000
5 $51,850
6 $55,700
7 $59,550
8 $63,400
Income = 80% orless of MHI OtherEligibility Criteria
- Debt to income ratio.
-Income sufficient to afford the
monthly cost of homeownership.
-Financial resources and credit score.
-Asset limit.

7. NHI ROAD TO HOMEOWNERSHIP

8. HOMEBUYER TRAINING
Northshore Housing Initiative homebuyer counseling and training classes are conducted at:
St. Tammany Homeownership Center, 1400 North Lane, Mandeville, LA 70471 and at
New Day Homeownership Services, 303 South Military Road, Slidell, LA 70461
Experienced counselors evaluate your credit to determine mortgage readiness and prequalification
limits. They can help develop a plan to overcome any credit or savings obstacles and schedule you
for required homebuyer training classes.
Homebuyer Training guides buyers through all steps of the home buying process and provides
information on protecting and preserving their home and investment. The 9-hour workshop consists of
three 3-hour evening classes and is held every other month. Fee $35
Financial Fitness teaches basic financial and money management with an emphasis on building
financial responsibility and long-term financial success. The 12-hour workshop consists of four 3-hour
evening classes held over two weeks. It is held every month. Fee $35
Home Maintenance These classes are designed to help new homeowners understand basic home
systems and preventive maintenance. Free

9. NHI - HOW IT WORKS
- Mortgage lender pre-qualifies buyer with CLT purchasing land.
- Homebuyer locates house to purchase or build.
- Homebuyer leases land from CLT.
Example:
House price $180,000
Homebuyer mortgage $144,000
CLT purchases land $36,000
Shared appreciation agreement.

10. NHI LAND LEASE OVERVIEW
The ground lease is a document signed at closing that details the terms
of purchase assistance from NHI. Some of the key points are:
- The lease has a 99-year term.
- The lease is inheritable.
- The lease requires owner occupancy.
- A resale formula sets shared equity on appreciation and keeps the
land affordable for the next buyer.
- Homeowner pays a monthly ongoing lease fee to NHI of $45/month.
- Homeowner enjoys automatic membership in the Community Land Trust.
- The homeowner agrees to insure home, pay taxes and maintain
home to protect the community investment.

11. NHI RESALE EXAMPLE
Original sales price and
appraisal price = $180,000
(portion owned by homebuyer 80%)
Appraisal at resale $210,000 = Appreciation in
appraised value of $30,000 (increase in value
attributed to ownership by homeowner
= $30,000 X 80% = $24,000 times shared
appreciation factor of 25% = $6,000.
At resale the homeowner would receive their
original investment of $144,000 plus
$6,000 = $150,000 = sales price to next owner.
The remaining appreciation would stay
with the property to allow it to be sold as
affordable to the next buyer.
Resale priorto 5 years Shared Appreciation Factors
Percentage Ownership
25% 0-5 Years
35% 6-10 Years
45% 11-15 Years
55% 15+ Years
When you sell yourland trust home the
subsidy you received to help you purchase
is “paid forward” thus helping another
family also afford to purchase an
affordable home in the community.

12. COMMUNITY LAND TRUST
“Putting the dream of
homeownership within reach.”
Northshore Housing
Initiative
222 North Vermont St.
Covington, Louisiana 70433
985-246-7050
www.northshorelandtrust.org