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Access for Low-Income Households
The land trust provides access to land and housing for people who are otherwise
priced out of the housing market. Some land trust homes are rented, but,
when possible, the land trust helps people to purchase homes on affordable
terms. The land beneath the homes is then leased to the homeowners through
a long-term (usually 99-year) renewable lease. Residents and their descendants
can use the land for as long as they wish to live there.
Community Owned Asset
A CLT is ultimately controlled by its members. All CLT residents are members,
and other people in the community may also join. The members elect the CLT's
Board of Directors. Usually there are three kinds of directors on the Board
- those representing resident members, those representing members who are not
CLT residents, and those representing the broader public interest. In this
way, control of the organization is balanced to protect both the residents
and the community as a whole. The CLCLT acquires and preserves land for the
community. Sometimes CLT's buy undeveloped land and arrange to have new homes
built on it; sometimes they buy land and buildings together. In either case,
the CLT treats land and buildings differently. CLT land is held permanently
- never sold - so that it can always be used in the community's best interest.
Buildings on CLT land, however, may be owned by the residents.
Perpetual Home Affordability
The CLT provides access to land and housing for people who are otherwise priced
out of the housing market. Some CLT homes are rented, but, when possible, the
CLT helps people to purchase homes on affordable terms. The land beneath the
homes is then leased to the homeowners through a long-term 99-year renewable
lease. Residents can use the land for as long as they wish to live there. When
CLT homeowners decide to move, they can sell their homes. The land lease agreement
gives the CLT the right to buy each home back for an amount determined limited
by the CLT's resale formula. Each CLT designs its own resale formula - to give
homeowners a fair return for their investment, while keeping the price affordable
for other lower income people.
Preserving Owner-Occupancy
The land lease requires that owners live in their homes as their primary residences.
When homes are resold, the land trust can ensure that the new owners will also
be residents - not absentee owners.
Successful Homeowners
The City of Lakes Community Land Trust will provide a variety of training opportunities
and other services to first-time homeowners, and can provide crucial support
if homeowners face unexpected home repairs or financial problems. In these
cases the City of Lakes Community Land Trust will set households up for success
in finding a practical solution, and assist to help to make necessary financial
arrangements. In addition to the positive support of CLCLT residents, builds
strong communities through homeownership. The CLCLT ground lease requires that
owners live in their homes as their primary residences. When homes are resold,
the lease ensures that the new owners will also be residents - not absentee
owners.
Flexible Model
Land trusts have been established to serve inner-city neighborhoods, small
cities, clusters of towns, and rural areas. A land trust working in a small
city neighborhood may be the only local housing group, though it may collaborate
with citywide and regional organizations. Other land trusts, serving larger
geographical areas, may work closely with a variety of local organizations.
Land trusts may develop or rehabilitate housing by themselves or with the assistance
of other non-profit (and sometimes for-profit) housing developers. A land trust
may also acquire existing housing that needs little or no renovation. Some
land trusts have bought mobile home parks to provide long-term security for
mobile home owners. In addition to affordable housing, land trusts may make
land available for community gardens, playgrounds, economic development activities,
or open space, and may provide land and facilities for a variety of community
services. In rural areas, land trusts may hold land for gardens, farming, timber
and firewood, or conservation. A land trust can work with various ownership
structures for multi-family buildings. The land trust itself may own and manage
a building, another non-profit may own it, or the residents may own it as a
cooperative or as condominiums. In each case, the land trust will have provisions
to ensure long-term affordability. Sometimes land trusts buy undeveloped land
and arrange to have new homes built on it; sometimes they buy land and buildings
together. In either case, the land trust treats land and building differently.
Land trust land is held permanently - never sold - so that it can always be
used in the community's best interest. The residents, however, may own the
buildings on land trust land.
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