2024-10-21T12:57:42-05:00 2023-12-31 411647057 MAHONEY ULBRICH CHRISTIANSEN & RUSS PA 10 RIVER PARK PLAZA SUITE 800 SAINT PAUL MN 55107 990 2023-01-01 061665031 CITY OF LAKES COMMUNITY LAND TRUST CITY 6125947150 1930 GLENWOOD AVENUE MINNEAPOLIS MN 55405 ANDREA REESE EXECUTIVE DIRECTOR 6125947150 2024-10-17 1 0 MARC A KOTSONAS P00544551 6512276695 2024-10-17 2023 2024-10-15 13:58:12Z ANDREA REESE 1930 GLENWOOD AVENUE MINNEAPOLIS MN 55405 13695046 0 X WWW.CLCLT.ORG X 2002 MN CREATING COMMUNITY OWNERSHIP THAT PRESERVES AFFORDABILITY AND INCLUSIVITY IS THE MISSION OF THE CITY OF LAKES COMMUNITY LAND TRUST. 13 13 8 50 0 0 1925547 12803415 286938 265134 2072 178997 52295 48652 2266852 13296198 2307366 0 0 0 575383 626187 0 0 18393 1425383 1575940 4308132 2202127 -2041280 11094071 15797710 32072076 9970803 15151098 5826907 16920978 X CREATING COMMUNITY OWNERSHIP THAT PRESERVES AFFORDABILITY AND INCLUSIVITY IS THE MISSION OF THE CITY OF LAKES COMMUNITY LAND TRUST. 0 0 2099431 268209 IN 2023 THE CLCLT HAD ASSISTED ANOTHER 25 NEW HOUSEHOLDS ACHIEVE CLCLT HOMEOWNERSHIP IN MINNEAPOLIS, BRINGING THE TOTAL NUMBER OF HOMES IN TRUST TO 377 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), BEGAN IN EARNEST IN 2023. CLOSINGS ON INDIVIDUAL UNITS FOR BOTH PROJECTS ARE SCHEDULED TO START IN APRIL 2024. ADDITIONALLY, THE CLCLT ACQUIRED TWELVE NEW PROPERTIES THROUGH ITS HOMEBUYER INITIATED PROGRAM; EIGHT HOMES THROUGH PARTNERSHIPS WITH OTHER NONPROFIT DEVELOPERS; ONE THROUGH THE AFRICAN AMERICAN COMMUNITY LAND TRUST INITIATIVE; ONE THROUGH THE SELLER-LEVERAGED PROGRAM; AND ONE THROUGH PROJECT: SUSTAINED LEGACY. OF ALL HOUSEHOLDS SERVED IN 2023, 61% WERE FROM COMMUNITIES OF COLOR, AND THE AVERAGE AREA MEDIAN INCOME WAS 50.44%.THE RAPID INCREASE IN MORTGAGE INTEREST RATES AND LOW HOUSING STOCK WAS A SIGNIFICANT FACTOR IN THE NUMBER OF HOUSEHOLDS SERVED IN 2023. THE CLCLT ASSISTED SIX FEWER HOUSEHOLDS IN 2023 WHEN COMPARED TO 2022. MANY CLCLT HOMEBUYER INITIATED PROGRAM (HIP) BUYERS WERE UNABLE TO FIND QUALITY HOMES AT AN AFFORDABLE, SUSTAINABLE MONTHLY HOUSING PAYMENT THROUGH THE PROGRAM. AT THE SAME TIME, THE CLCLT WAS ABLE TO MOVE FORWARD ON PROJECTS SUPPORTED THROUGH THE CITY OF MINNEAPOLIS' AMERICAN RESCUE PLAN ACT (ARPA) FUND COMMITMENTS. THESE PROJECTS WILL ACTUALIZE AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES IN 2024. IN ADDITION TO THE 377 HOMES IN TRUST AT YEAR-END 2023, 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 2023 THE CLCLT HAD ALSO FACILITATED A TOTAL OF 124 RESALES. IT'S IMPORTANT TO NOTE THAT NO NEW PUBLIC INVESTMENTS WERE NEEDED TO CREATE AFFORDABILITY FOR THE 124 RESALES DUE TO THE LONG-TERM AFFORDABILITY MECHANISM BUILT INTO THE COMMUNITY LAND TRUST. THE RESALES REPRESENT 124 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 2023, 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 TIME OF COMPLETION.IN 2023 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 SEVEN COMMUNITY EVENTS. THROUGH THESE OUTREACH OPPORTUNITIES, THE CLCLT ESTIMATES IT WAS ABLE TO INFORM OVER 1,500 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. THE CLCLT IS CURRENTLY STAFFED BY 7.0 FTE EMPLOYEES. OTHER ITEMS OF SIGNIFICANCE TO NOTE FOR 2023: THE CLCLT'S LONG-TIME EXECUTIVE DIRECTOR TRANSITIONED OUT OF THE ORGANIZATION IN JUNE 2023 AND A NEW EXECUTIVE DIRECTOR STARTED AT THE END OF JUNE. ALSO, THE CLCLT RECEIVED ITS MOST SUBSTANTIAL FINANCIAL GIFT OF $10,000,000 MIDWAY THROUGH THE YEAR. 32726 45577 CITY OF LAKES COMMUNITY REALTY (CLCR), A MINNESOTA LIMITED LIABILTY NONPROFIT COMPANY, WAS FORMED TO FACILITATE LAND TRUST RESALES, PURCHASES, AND SELL RESIDENTIAL REAL ESTATE ON BEHALF OF CLCLT, AND TO REPRESENT REAL ESTATE TRANSACTIONS OF PARTNER ORGANIZATIONS PROVIDING AFFORDABLE HOME OWNERSHIP. THE ACTIVITIES ARE SUPPORTED PRIMARILY FROM COMMISSIONS ON REAL ESTATE SALES. 2132157 1 1 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 24 0 1 8 1 0 0 0 0 0 0 0 0 0 0 0 0 X 13 13 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X X MOLLIE MOSMAN 6125947150 1930 GLENWOOD AVE MINNEAPOLIS MN 55405 ALICIA SMITH CHAIR 2.00 2.00 X X 0 0 0 LAO LU HANG TREASURER 2.00 2.00 X X 0 0 0 LIBBY MURPHY SECRETARY 2.00 2.00 X X 0 0 0 SHEILA BLAND MEMBER 1.00 1.00 X 0 0 0 J RALPH PACE MEMBER 1.00 1.00 X 0 0 0 NATALY SANCHEZ MEMBER 1.00 1.00 X 0 0 0 MATTHEW C SARGENT MEMBER 1.00 1.00 X 0 0 0 PEGGY MOORE MEMBER 1.00 1.00 X 0 0 0 TAYLOR SMIRKARAVA MEMBER 1.00 1.00 X 0 0 0 MINKARA TEZET MEMBER 1.00 1.00 X 0 0 0 CHRISTINA JENNINGS MEMBER 1.00 1.00 X 0 0 0 BONITA TURNIPSEED MEMBER 1.00 1.00 X 0 0 0 CATRICE WILLIAMS MEMBER 1.00 1.00 X 0 0 0 JEFF WASHBURNE FORMER EXECUTIVE DIRECTOR 37.00 3.00 X 87108 0 8834 STACI HORWITZ OPERATIONS DIRECTOR 36.50 3.50 X 98872 0 17159 MOLLIE MOSMAN FINANCE DIRECTOR 36.50 3.50 X 97106 0 13181 ANDREA REESE EXECUTIVE DIRECTOR 37.00 3.00 X 54922 0 9333 338008 0 48507 4 0 0 0 MERIDIAN PROPERTIES LLC PO BOX 582881 MINNEAPOLIS MN 55458 PROPERTY MANAGEMENT SERVICES 373610 J LEWIS BUILDING & REMODELING LLC 20071 NOWTHEN BLVD NW NOWTHEN MN 55330 CONSTRUCTION SERVICES 198450 2 22494 1384286 11396635 335000 12803415 LAND LEASE REVENUE 532000 85582 85582 MISCELLANEOUS INCOME 532000 47202 47202 BUILDING RENTS 532000 42838 42838 COMMISSIONS 532000 41677 41677 MARKETING/DEVELOPER FEES 532000 26825 26825 21010 21010 265134 178997 178997 447500 398848 48652 48652 13296198 313786 0 178997 395656 357503 25532 12621 169911 167560 1599 752 17136 16627 211 298 4560 4560 38924 36209 1810 905 18576 18576 128967 126789 2178 11752 11040 443 269 5495 5327 113 55 32180 31197 663 320 7584 7521 42 21 8346 8346 33062 32044 679 339 10290 9057 1089 144 HOMEOWNERS ACQUISTION 667450 667450 REHAB COSTS 597178 597178 OUTREACH AND DEVELOPMEN 28330 28071 234 25 DUES AND SUBSCRIPTIONS 15735 14856 586 293 10995 10822 173 2202127 2132157 51577 18393 313156 120467 8702383 696056 1205350 349305 291830 3151124 9384166 20875 31296 706980 376190 348900 330790 10918294 12005794 15797710 32072076 124708 203314 65000 45000 374191 457308 9406904 14248390 0 197086 9970803 15151098 X 5300246 16102871 526661 818107 5826907 16920978 15797710 32072076 11094071 0 X X 0 1 X 1 1 1 X 2023753 2447659 4929863 1925547 12803415 24130237 2023753 2447659 4929863 1925547 12803415 24130237 2381344 21748893 772 686 1342 2072 178997 183869 52295 52295 24366401 2149245 0.89260 0.84300 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 10260 10260 680220 359690 320530 16500 16500 0 330790 LAND HELD IN TRUST 12005794 C 12005794 DUE TO NHS 197086 197086 X PART X, LINE 2: CLCLT IS CLASSIFIED AS A TAX-EXEMPT ORGANIZATION UNDER MINNESOTA STATUTE 290.05 AND SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, ARE EXEMPT FROM PRIVATE FOUNDATION STATUS UNDER SECTION 509(A)(1) OF THE INTERNAL REVENUE CODE AND IS SUBJECT TO INCOME TAXES ONLY ON NET UNRELATED BUSINESS INCOME. INCOME FROM OPERATION OF THE RENTAL PROPERTY IS SUBJECT TO UNRELATED BUSINESS INCOME TAXES BECAUSE THE BUILDING IS DEBT FINANCED. NO INCOME TAXES WERE PAID IN 2023 AND 2022. MANAGEMENT BELIEVES CLCLT DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS. X LAND 6 335000 APPRAISED VALUE 0 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 THE REGULAR MEMBERS OF THE CORPORATION SHALL BE ALL NATURAL PERSONS, EIGHTEEN YEARS OF AGE OR OLDER, WHO LEASE LAND OR HOUSING FROM THE CORPORATION, OR WHO LEASE OR OWN HOUSING THAT IS LOCATED ON LAND LEASED BY ANOTHER ENTITY FROM THE CORPORATION (LESSEE MEMBERS). ALL OTHER NATURAL PERSONS, EIGHTEEN YEARS OF AGE OR OLDER, WHO HAVE PAID MEMBERSHIP DUES AS SET BY THE BOARD OF DIRECTORS (GENERAL MEMBERS). FORM 990, PART VI, SECTION A, LINE 7A THE DIRECTORS SHALL BE ELECTED BY LESSEE AND GENERAL MEMBERS PRESENT AND VOTING AT THE ANNUAL MEETING. FORM 990, PART VI, SECTION A, LINE 7B THIS APPROVAL IS REQUIRED FOR THE DISSOLUTION OF THE ORGANIZATION, THE SALE OF CLCLT ASSETS (HOMES), AND A CHANGE IN CLCLT GROUND LEASE DOCUMENTS. FORM 990, PART VI, SECTION B, LINE 11B THE EXECUTIVE DIRECTOR PROVIDES A NARRATIVE AND THE BOARD REVIEWS. FORM 990, PART VI, SECTION B, LINE 12C THE DIRECTORS HAVE TO SIGN A FORM WHERE THEY MUST STATE ANY CONFLICTS OF INTEREST THAT THEY HAVE. THE BOARD MEMBERS MUST ANNOUNCE ANY OTHER AFFILIATIONS AND THEY SHOULD BE REFLECTED IN THE BOARD MINUTES. A BOARD MEMBER THAT HAS A CONFLICT OF INTEREST MY BE PRESENT FOR THE DISCUSSION TO ANSWER QUESTIONS, BUT MAY NOT ADVOCATE FOR THE ACTION TO BE TAKEN AND MUST LEAVE THE ROOM WHILE A VOTE IS TAKEN. FORM 990, PART VI, SECTION B, LINE 15 FOR THE EXECUTIVE DIRECTOR THE EXECUTIVE COMMITTEE PERFORMS A REVIEW OF SIMILAR SALARIES IN THE FIELD AND NONPROFIT SALARY REVIEW DONE EVERY COUPLE OF YEARS AND MAKES A RECOMMENDATION TO THE BOARD OF DIRECTORS FOR APPROVAL. FOR KEY EMPLOYEES THE EXECUTIVE DIRECTOR DETERMINES THE SALARY BY REVIEWING COMPARATIVE SALARIES IN THE INUDSTRY AND BY EXAMINING THE ANNUAL BUDGET. FORM 990, PART VI, SECTION C, LINE 19 A PHOTOCOPY OR ELECTRONIC VERSION IS AVAILABLE UPON REQUEST. PART XII, LINE 2C THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. CITY OF LAKES COMMUNITY REALTY LLC 1930 GLENWOOD AVENUE MINNEAPOLIS MN 55405 812392198 PURCHASE AND SELL REAL ESTATE MN 45703 137268 CITY OF LAKES COMMUNITY LAND TRUST NEIGHBORHOOD HOUSING SERVICES 1930 GLENWOOD AVENUE MINNEAPOLIS MN 55405 411386993 TO PROMOTE NEIGHBORHOOD STABALIZATION THROUGH SUSTAINABLE HOME OWNERSHIP MN 501(C)(3) LINE 7 CITY OF LAKES COMMUNITY LAND TRUST 0 0 0 0 0 1 0 0 0 0 0 0 1 0 1 1 1 1 0 1 NEIGHBORHOOD HOUSING SERVICES Q 101888 COST NEIGHBORHOOD HOUSING SERVICES E 197086 COST