Community Land Trust

A CLT is an independent, nonprofit organization that provides permanent affordable housing for working families who have incomes at or below the median income level.

This is an innovative, affordable housing strategy that allows buyers to purchase homes at a lower cost by separating the cost of the housing from the cost of the land that it sits on. Under this model, the buyer is able to purchase the structure and then lease the land from the trust, reducing the overall cost of the mortgage and down payment needed.

This model also allows working families an affordable route to homeownership with the ability to also build equity in the event that they decide to sell their home.

Overall, a CLT provides a long-term investment in the whole community's stability and affordability allowing future generations to stay in the area they call home.

Purchasing a home

• The cost of the home is separated from the cost of the land.
• The land is leased from the CLT.
• Future costs are lower because the homeowner only pays property taxes on the structure, not the land.
• The homeowner is still able to use benefits, such as deducting their mortgage interest from their income tax.

Building equity

• Owners can sell their structure at any time.
• Owners will receive a percentage of the equity when they sell. Upon purchase of the home, the buyer signs an agreement with the land trust which determines the percentage of appreciation or equity they will receive when the home is sold.
• The additional equity goes back to the trust to ensure that the home remains at an affordable price which can then be sold to another income eligible family.

• CLT properties make homes permanently affordable. When purchasing, a buyer’s monthly housing payment is fixed through their mortgage, providing them with more stability than that of a renter who is at the mercy of their landlord and their ability to increase monthly rental costs.
• By investing in a home through a CLT, lower income residents are able to stop paying rent and build wealth and stability for themselves and their families for generations to come.
• A one-time investment makes the home not only affordable for the buyer/families, but also remains affordable for all families thereafter, creating a "pay it forward" system.