House Bill 200 – A Win for Community Land Trusts in Montana!

April 24, 2017 | Posted in Uncategorized | By

House Bill 200 Has Been Signed into Law!

After much deliberation by the Montana Legislature, a bill defining Community Land Trusts has finally become law. The Governor signed House Bill 200 on April 20th. The bill was sponsored by Representatives Dave Fern and Frank Garner, with some well-timed support from Senator Margie MacDonald.

So, according to Montana State Law, what is a Community Land Trust?

“Community land trust” means a nonprofit organization exempt from taxation under section 501(C)(3) of the Internal Revenue Code that holds title to land beneath individually owned housing units for the purpose of preserving affordable housing.”

Educating the legislators about CLTs was a lot of work! Our unique model of permanently affordable housing proved to be a confusing subject. Trust Montana and Northwest Montana CLT staff, experienced CLT realtors from Missoula and Kalispell, and representatives from the Red Lodge Area Community Foundation worked to explain the CLT model to legislator after legislator. In the final vote in the Senate, the bill passed by just one vote. This bill had no fiscal note (aka, it doesn’t cost anything). Some legislators were confused by the tax exempt status of some land when it is owned by a non-profit, some were bothered by resale restrictions, and others just didn’t want to provide a “handout” to Montanans with limited means. The bill simply provides a definition of CLTs in the statute so that lenders, title companies, realtors, and home buyers can more easily understand how it all works.

 

 

CLT poster

During this legislative session, we’ve learned a lot about the difficulties of explaining our model. Here’s an elevator speech:

CLTs provide opportunities for people to purchase homes at an affordable price by:

1) subsidizing the homes just once,

2) keeping the cost of the land out of the price of the home by holding the land in trust, and

3) entering into long term ground leases with homeowners that limit the amount of equity a homeowner can take out of the home at resale  (current limit for Trust Montana is 1.2% flat rate increase per year of ownership – so it’s not market-driven).

These homes act as an alternative to renting, and a stepping stone to market-rate home ownership. A single infusion of subsidy into a CLT home benefits the initial home buyer and all subsequent buyers: when CLT homeowners sell, they are required to sell to another low-to-moderate income household. Most CLT homeowners earn enough equity from their sale for a down payment on a market-rate home.

There are currently three nationally-certified CLTs operating in Montana:

The North-Missoula Community Development Corporation has operated a CLT for affordable housing and commercial space for 15 years. The Northwest Montana CLT in Kalispell has been operating since the recession. Trust Montana is relatively new, statewide, and is chartered to hold land for a variety of community uses including farming, housing, and commercial development.

Between Missoula and Kalispell, CLTs have provided over 150 families with the opportunity to own a home when they would otherwise be renting. Trust Montana is currently working to develop its first affordable housing project, in Red Lodge. There is also a new CLT start-up in Big Sky. Community groups in Paradise Valley, Seeley Lake, the Bitterroot Valley, and Billings are looking into CLTs to solve their affordability issues. Nationally, CLTs are being utilized to revitalize low-income neighborhoods without gentrifying them.

Now that CLTs are defined in Montana, those of us who work to provide affordable housing here, with very limited resources to do so, will have an easier time facilitating CLT development. We can point to Montana State Law to explain how CLTs work. Our hope is that an increase in understanding about CLTs will lead to an increase in permanently affordable housing, which will result in an increasingly equitable Montana.

Thank you to those who helped make HB200 law!  

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Trust Montana has received its 501(c)3 designation

December 16, 2013 | Posted in Uncategorized | By

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Great News: After a long process, Trust Montana has finally received its IRS determination letter, and we officially good to go as a stand-alone nonprofit.

The IRS has granted us tax-exemption status for the full range of our land stewardship activities, state-wide.

Thanks for your support in our fledgling stage.  Now, on to the next.

 

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November 2013 Member Update

November 20, 2013 | Posted in Uncategorized | By

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Member Update – November 2013

Greetings Members of Trust Montana,

Thank you for taking the time to check out what we’re up to.  This past year, we have continued to lay the groundwork for our land stewardship work, worked on building the coalition, and will soon close the deal on Trust Montana’s first piece of property to be protected in perpetuity.

We thank you all for your crucial support in this nascent phase.  We believe that Trust Montana will grow to be an important voice for land stewardship and a beacon of cooperation among conservationists, ag land preservationists, historical preservationists, and affordable housing advocates.

As we move forward, we ask for your continued support.  Coalition building is a challenge, especially across fields as diverse as those we seek for this collaboration.  If you know of a group or have a colleague who may be interested in what we are doing, let us know.  If you are interested in becoming more involved and helping shape Trust Montana as it continues to grow, please get in touch about joining as a board member.

Best,

Jerry Petasek
President, Trust Montana Board of Directors

red lodge

Trust Montana will soon acquire its first piece of land as a Community Land Trust in Red Lodge, MT.

Trust Montana is preparing to receive a land transfer from Habitat for Humanity of Carbon County.  TM will hold the land in perpetuity in service of its mission and the mission of Habitat for Humanity – and ensure the permanent affordability of the home that sits on the land.  We are also exploring the possibility of acquiring the land under the Red Lodge Boys and Girls Club facility from the City of Red Lodge in order to ensure the facility will always be affordable and accessible to the BGC.

Non-Profit 501(C)(3) Status

Trust Montana, Inc. originally submitted our 501(c)(3) application to the IRS in June of 2012.  This past spring, we received a request for additional information from the IRS.  The information request was completed by NMCDC staff and sent back to our contact in mid-October.  As we await our IRS determination, we will continue to function under the fiscal sponsorship of NeighborWorks Montana.


coalitionBuilding a Coalition is tough work.Can you help?

Do you know of any organizations or individual land stewards who may be interested Trust Montana?  Email lacyjroberts@gmail.com, and we’ll send them more information.

 

 

 

 

 

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You are receiving this email because you are a member of Trust Montana.

Our mailing address is:
Trust Montana

c/o NeighborWorks Montana
509 First Ave South

Great Falls, MT 59401

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Trust Montana

February 18, 2013 | Posted in Uncategorized | By

“Our current status as a place where beautiful wildlands surround healthy villages and a dynamic culture is something that has been bequeathed to us through the accident of history.  Ours is not a task of preserving a pastoral relic, but of recognizing the present balance and figuring out how to make our own accommodations within the flux.”

-John Elder, at a Vermont Land Trust annual meeting, 1996.

 

 

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