How does it work?
A Community Land Trust or CLT is a non-profit organization that provides access to affordable home ownership. CLTs sell homes to people who are credit-worthy with low to moderate incomes. While buyers own the house, the land beneath their home belongs to the CLT. The homeowner holds rights to the land by paying a small fee through a leasehold agreement.
CLTs create opportunities for home ownership by utilizing a shared appreciation model. When homeowners sell their homes, the resale price is based on a formula designed to provide a fair and reasonable rate of return, enabling homeowners to regain their initial investment plus a fair share of appreciation of their homes. The profits shared with the land trust help keep the home’s price within reach for future income qualified buyers.
The stable and secure housing made possible by CLTs enables many individuals and families to invest in their own future, improve their financial status, and positively contribute to the economic development of the community.