Shared Equity for Existing Businesses

Shared-Equity for Existing Businesses Example:
A Community Health Center: Champlain Housing Trust (CHT) in Burlington, Vermont

Comm-Helth-centers

This was CHT’s first commercial project, as they are primarily a residential organization. CHT bought a parcel of land that already had existing commercial buildings on it. CHT, acting in the Shared Equity model, leased one of the buildings to a nonprofit community health center for a long-term 99-year lease in exchange for a set resale formula. Rather than manage transfer of ownership to another buyer, CHT agreed to buy back the building from the health center when they prepared to move with a credit for improvements made.

Challenges:

The community health center added an entire second story to the building and moved shortly after remodeling. The building was appraised for less than the health center put into remodeling, but CHT promised it would pay a set resale formula plus credit. CHT had to fundraise to repay the non-profit. A continued challenge is that it requires staff time and capacity to keep the building occupied.

Source: Champlain Housing Trust