City of Lakes Community Land Trust

What it reported doing in 2024

In 2024 the clclt assisted 48 new households achieve clclt homeownership in minneapolis, bringing the total number of homes in trust to 415 via ground lease and deed restrictions. Construction on the clclt's two largest projects, the 628 (7-unit condominium complex) and harrison townhomes (17-units), were completed in 2024. Closings on individual harrison townhomes started in april 2024 and the 628 in october 2024. Additionally, the clclt acquired fifteen new properties through its homebuyer initiated program; four homes through partnerships with other nonprofit developers; one through the seller-leveraged program; three through project: sustained legacy; three existing contract for deed holders refinanced into conventional mortgage; and three contract for deeds were cancelled. Of all households served in 2024, 61% were from communities of color, and the average area median income was 51.06%in addition to the 415 homes in trust at year-end 2024, the clclt also owns and maintains four rental properties, the clclt office building, and several additional properties under development in minneapolis. Each of these properties will remain perpetually affordable with no or very little additional affordability investment being needed again. As of year-end 2024 the clclt had also facilitated a total of 132 resales. It's important to note that no new public investments were needed to create affordability for the 134 resales due to the long-term affordability mechanism built into the community land trust. The resales represent 134 low- and moderate-income households who were assisted into homeownership without the clclt needing to raise additional funds to keep the homes affordable despite rapidly rising home values in minneapolis and increasing interest rates nationally. Although construction costs stabilized slightly in 2024, the impact continues to be felt on construction projects. Even though public funders have begun to adjust their per unit affordability or development gap maximum subsidy levels, the clclt remains cautious about taking on development projects without ample gap resources or definitive permanent financing sources available to ensure the homes are priced affordably at completion.in 2024 the clclt sponsored over 28 clclt orientations. Continuing to provide virtual orientations has allowed the clclt to offer orientations without limiting the number of attendees due to space restrictions. Additionally, the clclt participated in four community events and facilitated four community conversations. Through these outreach opportunities, the clclt estimates it was able to inform over 1,000 community members about community land trust homeownership and the clclt's paths into homeownership. Additionally, the clclt continues to meet with homebuyers virtually, present to neighborhoods and social/human service providers, and other stakeholders about homebuyer opportunities in the community and through the clclt way of homeownership. At year's end, clclt was staffed by 6.8 fte. Other significant events in 2024: clclt's long-time finance director transitioned out of the organization in november 2024.

Financial Efficiency

• Mission deployment rate: 57%; rating input score 57
• Program expense ratio: 98.1%; rating input score 98
• Fundraising efficiency: $274.69 raised per $1 spent on fundraising; rating input score 93; 93rd percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -11.8%; rating input score 12; 12th percentile among comparable filings
• Total-asset coverage ratio: 8.94; rating input score 90; 90th percentile among comparable filings
• Liabilities to assets ratio: 0.47; rating input score 23; 23rd percentile among comparable filings
• Officer compensation ratio: 9.5%; rating input score 31; 31st percentile among comparable filings

Growth

• Program expense growth: 11.9% per year; rating input score 100; 70th percentile among comparable filings
• Revenue growth: 15.6% per year; rating input score 100; 83rd percentile among comparable filings
• Asset growth: 13.6% per year; rating input score 100; 71st percentile among comparable filings