Behind the Scenes: Drafting Organizational Protocols
As a mission-aligned organization committed to permanent affordability, community control, racial equity, and anti-displacement work, we want to make sure our values are not just abstract guiding ideas. We want to make sure they are baked into every one of our organizational decisions.
Right now, BNCLT staff and board members are working hard to lay the foundation for two important emerging programs. The first program is a homeownership program that will allow BNCLT to steward homeownership units – not just rental units as we do now. This is an important step toward supporting our “prosperity pathway” goal, which was established in our 2022 Strategic Plan. Our “prosperity pathway” effort aims to build out more pathways for people to save money, build assets, and for some, consider homeownership.
The second program is a private property transfer program that will allow BNCLT to work with mission-aligned homeowners in our neighborhoods to transfer their property to BNCLT — through estate planning, below-market-rate sales, etc. For some, this could also be a way to keep a home, and/or a way to age in place. These private property transfers are a key acquisition pathway that will allow BNCLT to bring more property into our portfolio, take property off of the speculative housing market, and support homeowners to stay in their homes.
To lay the groundwork for both of these programs, BNCLT has done extensive research, and has begun to identify critical decision-points that we are addressing with our board members. Some of these decision-points for both programs include:
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How do we come up with our “resale” formula, which balances individual equity growth with permanent affordability?
What kinds of capital improvements are encouraged on a CLT property?
What do we want to include in our Ground Lease? This is the contract held between the CLT, who holds the land, and the home owner, who owns the building.
What are the entry points for home ownership to reach a broader spectrum of buyers at different affordability? Rent to own? Limited Equity coops?
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In which geographic areas will BNCLT accept property?
What is BNCLT’s target resident AMI for acquired properties?
What building types will BNCLT accept?
Do we want to suggest discount levels to interested sellers, and should this be related to location?
How much due diligence should BNCLT do for homes that are being transferred via estate plan, via below market-rate sale, and via other pathways?
If we receive property that we cannot turn into affordable rental/homeownership units, what is our “Plan B” policy?
Beginning to delve into and answer these questions with our board members allows BNCLT to think carefully, and collectively, about how to put our values into practice. This is a key part of how we maintain “community control.”
Once we have gone through an initial decision-making process with our board members, we will bring some of these decisions to our broader membership. For those of you who choose to join us as members, we look forward to engaging in this important decision-making moment together!