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What is Stewardship?
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In order to have a well operating [building/community/development] one must maintain the physical, financial, and social conditions of the [building/community/development]. When a cooperative is unable to function effectively members are overworked and frustrated, and at worst can mean a loss of housing for the members who live there. A lot goes into running a cooperative – it can feel like members are being asked to run a multi-million dollar company in their spare time. The good news is that the members aren’t supposed to work on this alone – with the right partners, the members receive advice from experts and direct their agents implement their plan.
Stewardship services for a cooperative can include a variety of tasks depending on their particular needs, however all stewardship prioritizes preserving the affordability, quality, and security of the cooperative in a manner that gives a clear path forward for the board along with clear goals and attainable tasks.
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- Maintain a waiting list of prospective buyers
- Certify the income eligibility of prospective buyers
- Recruit and approve lenders offering share loans for buyers to maximize both affordability for purchaser and wealth realization for seller
- Calculate maximum unit price at time of resale
- Educate prospective buyers about special conditions on the use and resale of limited equity cooperative units
- Oversee the transfer of cooperative units, ensuring compliance with government, lender, and other restrictions as well as proper recordation of cooperative share
- Regulate subletting
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- Regular review of cooperative budget, capital reserve accounts and income.
- Annual budget recommendation and oversight
- Ongoing review of financial statements against budget projections
- Annual building walkthrough and regular Capital Needs Assessments
- Annual review of asset depreciation and system replacement schedule
- Ongoing Property Management oversight and evaluation
- Review rehabilitation scope and plans
- Assist locating suitable developer
- Confirm proper reserve balances
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- Screen and approve share loans, preventing predatory lending
- Certify compliance with affordability regulations
- Certify compliance with operating regulations
- Certify compliance with corporate governance regulations
- Assist with refinancing acquisition and rehabilitation loans
- Ensure adequate insurance coverage
- Secure equitable taxation of units at transfer
- Intervene to cure defaults and prevent foreclosures
- Annual certification of units as primary residence
- Oversee transfer of share upon death of member
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What does Stewardship provide to Cooperative Members?
More than any other aspect of life, it is important to have security and reliability in one’s home – Douglass CLT as a provider of stewardship, will accompany residence throughout the full time of their stay in the cooperative, from providing pre-purchase counseling and education on what exactly a cooperative is, through explaining what a shareholder vote will mean for the member, and through to transferring the unit to the next generation of homeowner. Benefits include:
- Maximum affordability at purchase and wealth at sale through lending partners.
- Mediation of disputes with cooperative
- Assistance in confirming maintenance requests are fulfilled in a timely manner
In addition, members in cooperatives serviced by Douglass CLT are automatically eligible for all the benefits of a CLT member which include:
- Quarterly social outings (baseball and basketball outings, BBQs and fish frys, and other events
- Ongoing educational workshops on matters such as: tax preparation; home maintenance; personal finance;
- Ability to vote in CLT member decision-making and for CLT board members.
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What is a
Community Land Trust?
CLTs are one part model, one part movement: a community controlled organization using permanent ownership of land to keep the housing and commercial units sitting atop it permanently affordable. Alone, any model is not enough, CLTs rely on continued organizing of members to make certain that it the organization’s goals and ideals are obeyed.
With as many watchdogs as members, a CLT can assure that the legacy born in the Civil Right’s movement stays true to the community it serves.
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What is the Douglass CLT?
Douglass CLT is a community-driven enterprise to help advance equity and prevent displacement by holding land in trust and leasing it for homeownership and rental housing, as well as commercial/small business, at reduced cost to safeguard permanent affordability. The key results for the Douglass CLT include safeguarding permanent affordability, preventing displacement of current residents, creating community-held assets, and building assets for individuals and families. Fundamentally, the Douglass CLT believes in the right of every DC resident to stay and thrive. Working with Limited Equity Housing Cooperatives (LEHCs), both on Douglass CLT land and through individual stewardship agreements, is critical to advancing these goals.
Douglass CLT recognizes that residents and small businesses of the District are our greatest strength and have the right to remain and thrive here. We believe in celebrating and preserving the culture and identity of all District residents. As an inherently anti-displacement organization, the Douglass CLT prioritizes benefit to low-income, existing residents, and welcomes development that does the same.
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