We are partnering with a community land trust to fulfill our goals of creating permanently affordable housing.
A COMMUNITY LAND TRUST* (CLT) is a nonprofit, committed to acquiring multiple parcels of land throughout a targeted geographic area with the intention of retaining ownership of these parcels forever, while keeping them permanently affordable. In this model, permanent affordability is ensured by separating the ownership of the land, from the ownership of the building on the land. The CLT owns the land, and the homeowner owns the building.
Because the value of the land is no longer included in the building value, the home is considerably less expensive to purchase.
Buildings on CLT owned-land may include single-family homes, rental buildings, condos, co-ops, and mixed-use structures with commercial or office spaces.
The building on the CLT-owned is sold or rented to a buyer who meets income eligibility requirement, at a reduced price. The CLT leases the land to the building owner through long-term ground leases, which typically run for 99 years. All property sales on CLT-owned land is governed by a resale formula outlined in the ground lease. Usually the ground lease gives the CLT the first right of purchase and caps the resale price of the property to keep it permanently affordable . When the CLT resells the property, the deed to the building is conveyed to a new owner. However, The deed to the land remains with the CLT in perpetuity. In other instances the CLT retains ownership of both the land and the property, operating as a landlord.
In all circumstances the CLT's mission is to keep housing permanently affordable, servicing homeowners, or renters with income no higher than 50% - 80% of the Area Median Income (AMI)
further reading on community land trusts
What If There Was a Middle Option Between Renting and Owning?
Affordable Housing’s Forever Solution
Stable Home Ownership in a Turbulent Economy (Report)
COMMUNITIES OVER COMMODITIES: People-Driven Alternatives to an Unjust Housing System (Report)