How Does a CLT Work?
A community land trust (CLT) is a nonprofit, community-based organization that works to provide perpetually affordable homeownership opportunities. In the truest sense, a CLT acquires land and removes it from the speculative, for-profit, real estate market. CLT’s hold the land they own “in trust” forever for the benefit of the community by ensuring that it will always remain affordable for homebuyers.
Benefits of Owning a CLT Home
Affordability
CLCLT homes are more affordable than homes purchased on the open real estate market because CLCLT provides affordability assistance to its homebuyers. The CLCLT’s affordability assistance reduces the amount of financing the buyer must obtain in order to purchase a home.
Mortgage
Consistent and affordable mortgage principal and interest payments.
Community
CLCLT homeowners are members of the CLCLT for as long as they own their CLCLT homes. As part of this larger community, they can choose to participate in the CLCLT community through voting, volunteering, and becoming a CLCLT board member.
Support
CLCLT homebuyers have the support of CLCLT and its staff as long as they own their homes. CLCLT provides a wide array of support to its homeowners – from informational newsletters to hands-on home improvement workshops. The CLCLT is also available to help homeowners in dealing with financial problems and foreclosure prevention.
Stability
Homeownership provides stable housing costs and security from eviction. With this stability, homeowners have a solid foundation that can allow them to pursue other dreams such as going back to school or opening a small business.
Ownership
CLCLT homeownership provides households stability and security not found with renting. CLCLT homeowners have control of their housing with stable monthly housing payments, security from eviction, and the opportunity to accumulate both earned equity and market equity. CLCLT homeowners can also take advantage of income tax deductions for their property taxes and the interest paid on their mortgage.
Can I Get a CLT Home?
Qualifications
All CLCLT home buyers must earn less than 80% of the Area Median Income (AMI) for the Twin Cities Metro area and are based on household size.
The household income is determined using the gross annual income for all individuals 18+ years of age who will be living in the home at the time of closing.
Income limits are determined by the Department of Housing and Urban Development (HUD) and can change annually. Income limits are listed below:
Household Size Income Limit
1 $68,500
2 $78,250
3 $88,050
4 $97,800
5 $105,650
6 $113,450
7 $121,300