Announcement - CLT Solidarity Fund
SFCLT’s CLT Solidarity Fund
With so few multi-year grant sources for Community Land Trusts in the Bay Area, SFCLT understands that the survival of so many CLTs in our region relies on cobbling together financing from many unreliable creative sources, therefore leading easily to delays in funding and unexpected shortfalls.
This is why in light of the generous gift from Mackenzie Scott last year to SFCLT, SFCLT decided to create the CLT Solidarity Fund to assist our fellow CLTs to get through tough times.
The CLT Solidarity Fund was created for assisting fellow CLTs with emergency situations. Emergencies include but are not limited to sudden or unexpected:
loss of revenue or delays in grant or loan funding
financial losses to the organization and/or properties
changes in staffing or board composition which have led to instability in the organization
destruction to property/buildings
Eligibility Criteria
A 501c3 non-profit organization
Has been in existence for at least one year.
A Community Land Trust
Created for the purpose of permanently removing land and housing from the speculative market
Empowers residents to participate in its governance in some form.
Able to produce financial statements regarding the organization and its holdings.
An active and functioning board of directors and at least one staff person.
Factors Considered for a Loan Award
The nature of the hardship experienced by the CLT.
A demonstrated ability to repay the loan based on revenue, business plan, and financials of the organization.
A clear plan for how the loan will be used.
Staffing to implement the plan
Alignment with our mission and values, particularly in advancing racial equity.
1st time applicants are prioritized
Terms of the Loan/Fees
Currently a 2% fixed rate for 6-12 months. Rate is potentially subject to change based on market conditions.
Administrative fee of $1000
Extensions may be granted on a case by case basis, however the interest may change from the standard 2% if the term of the loan is exceeded beyond its original term, and the loan may not exceed 12 months.
Loans may be used to pay for shortfalls in operating expenses of the organization, as well as, shortfalls in construction/rehabilitation of buildings within its existing portfolio, however may not be used as a) investment into a new business plan, b) towards the acquisition of new buildings, nor c) to cover the operating expenses for buildings.
In the case of default/nonpayment
Nonpayment results in the unpaid principal’s interest floating at the market rate (Wall Street prime rate).
Loss of eligibility for future loans from the fund
Legal action to recover the funds
Reporting
Quarterly reports of finances including any change in circumstances/plan from the original financial statements reviewed.
First Recipient of the Grant
SFCLT made its first 6-month Solidarity loan to the Northern California Land Trust in December 2023. The NCLT loan is due back to the Solidarity Fund in May 2024. Once those funds have been returned, SFCLT will be open to additional Solidarity Fund applications from other CLTs!