Local Homeowners

 

The widening income gap between the rich and poor and the shrinking middle class may be one of the greatest challenges facing this generation. A changing job landscape with the introduction of more automation will continue to reduce the number of jobs available, contributing to growing income insecurity. Affordable housing is diminishing and the cost of expenses such as healthcare and education is becoming unattainable for many. On the contrary, Land Readjustment initiatives have the capacity to relieve local homeowners from some of their current financial burdens, while financially empowering them through reliable, ongoing income streams. Listed below are some of the direct benefits that Land Readjustment can bring to local property owners.

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Benefits to Homeowners:

• Complete 100% debt relief on existing mortages

• Newly built condo unit, fully paid at no cost with 100% direct title

• Ongoing passive income from dividends of commercial properties

• Better configured neighborhood adding more to home value
   

Investors

Rising land and construction costs, combined with tighter lending regulations have contributed to a sluggish economic recovery in the Real Estate Sector. Changing lifestyle preferences among key demographics such as the Millenial and Baby Boomer generation, in addition to advances in online technologies affecting traditional retail and office space, are leading to greater market uncertainty and higher risk in the Commercial Real Estate Sector. Land Readjustment strategies provide investors new development opportunities either as joint owners of CRE investments with local property owners or as sole owners of CRE developed on a ground lease. Land Readjustment strategies applied to suburban areas coincides with the growing trend of creating walkable neighborhoods of multifamily housing and mixed-use in more urbanized environments with greater transportation options.

 

Benefit to the Investor:

• Lower cost of land in suburban areas 

• Less complicated demolition phase than in urban centers

• More efficent use of capital and no speculation as only mortgage debt is purchased 

• Better bottom line through tax incentives provided by the city government

Municipalities

 

The recent economic downturn, marked by high unemployment, decreasing home values, foreclosures and an overall decrease in consumer spending, has resulted in limited revenue streams for local governments at a time when expenditures are rising. Added to this fiscal stress is decreased state and federal funding affecting areas from affordable housing to transportation.  Land Readjustment can be a sustainable approach for growing a municipality in a more balanced fashion, with less capital while increasing the tax base and providing better use of existing services. 

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Benefits to Municipalities: 

• Expanded tax base

• Introduction of new public land without capital

• Introduction of new public infrastructure using Tax Incremental Financing (TIF)

• Better use of existing urban infrastructure and services

• More attractive and competitive communities for further economic development