Mill Valley will join forces with a nonprofit organization to create affordable housing for workers, seniors and families.
The Mt. Tam Community Land Trust hopes to buy several apartment buildings and offer below-market rents to tenants.
The nonprofit also envisions buying houses with a split-equity ownership model. The trust would own the land and residents would own the building. In exchange for the reduced purchase price, residents would agree to limit future profits.
“I think we all agree that providing housing that is affordable to our local workers, seniors and young families is a pie that is going to be divided into multiple pieces,” said Kyle Hughes, chair of the nonprofit’s board. “We believe the land trust model is a very advantageous piece of that.”
The City Council unanimously approved a memorandum of understanding that allows the city “to release Affordable Housing Trust Fund monies to allow the CLT to construct, acquire and/or renovate buildings.”
The city’s embrace will enhance the trust’s credibility as it seeks grants from foundations, public agencies and private donors, said Danielle Staude, a Mill Valley planner.
Her staff report suggested the city could allocate $50,000 per dwelling toward property acquisitions. Those funds would come from the Mill Valley Affordable Housing Trust Fund, which contains $1.5 million and is funded by a 1% fee on residential building permits valued over $145,000.
“It continues to grow,” Staude said. “We get about $400,000 a year.”
Several council members asked how the land trust was looking for properties and lining up financing. The trust’s board has cataloged and tracked possible acquisitions, Hughes said. Two trustees are real estate professionals.
The land trust hopes to create four to six apartments at an estimated cost of $350,000 each in the first year.
“I met with members of the CLT board two, three years ago, and it’s come a long way,” Vice Mayor Max Perrey said.
“There’s buy-in not only from our city but also potential big donors in the community, philanthropic donors, MCF, the county,” he said, referring to the Marin Community Foundation.
“This is a really important step,” Mayor Stephen Burke said. “The city’s commitment will lead to getting the county’s commitment” and others.
Councilmember Urban Carmel struck a cautionary note, saying the city’s affordable housing trust funds are needed for its 45-residence project on Hamilton Drive. Carmel also said the trust has to meet with the city’s Housing Advisory Committee, which would issue recommendations to the council.
“Signing the MOU, I’m certainly in favor,” he said. “It doesn’t commit the city to anything, but shows that the city is very interested in the CLT and wants to make sure the CLT succeeds.”