Community Land Trust

• 1. What is a Community Land Trust?

  Community Land Trusts (CLTs) are nonprofit organizations governed by a board of directors that is comprised of CLT residents, community residents and public representatives. CLTs are designed to provide long-term housing affordability and shared equity homeownership opportunities for families and communities. Individual or organized tenants own the buildings and other improvements on the land, but do not own the land itself. A trust holds the title to the property for the benefit of the homeowners and the community.

• 2. Why is the land separated from the building?

  A community land trust is a structure that allows land to be held “in trust” for community needs, outside of the influence of market pressures. A classic CLT is an independent community-controlled entity that owns land and takes care of, or stewards, that land, making sure it is being used in ways that support the community it is accountable to.

  One of the most unusual things about a CLT is that it can separate the ownership of land from the ownership of the buildings on that land. This separation of land and building allows homeowners to have control and security as owners, while the community is assured that when the ownership of the building changes hands, it stays affordable and continues to serve the community.

  To determine if you live in an unincorporated region, use the County’s jurisdiction look-up tool.

• 3. How does a Community Land Trust work?

  A typical community land trust for affordable housing works like this:

  • The land to be held in trust is either purchased or donated.
  • A family or individual purchases a house that sits on the land owned by the community land trust.
  • The purchase price is more affordable because the homeowner is only buying the house, not the land.
  • The homeowners lease the land from the community land trust in a long-term (often 99-year), renewable lease.
  • The homeowners agree to sell the home at a restricted price to keep it affordable in perpetuity, but they may be able to realize appreciation from improvements they make while they live in the house.
• 4. How does a CLT keep housing affordable?

  Community Land Trusts are a model for stabilizing neighborhoods while at the same time allowing low- and middle-income people the chance to build household wealth.

  Community land trusts are a form of permanently affordable housing based on shared equity. The trust retains ownership of the land and maintains it for the benefit of present and future homeowners and the community as a whole. The homeowner leases the land and owns the building and pays for improvements on the land.

  The land lease sets out terms for any future sale of the property, letting the homeowner build equity through appreciation in value, while ensuring the home remains affordable for future limited-income buyers.

• 5. How do CLT homeowners earn equity?

  CLT homeowners are able to purchase a home at a below-market price in part because they are purchasing the building and not the land (land can account for 20 to 50 percent of a house’s price, depending on location). The homeowner agrees to a 99-year renewable, inheritable lease on the land, so the amount of time they can hold their property is just as secure as a typical homeowner’s. In exchange, they agree to restrictions on how much they can resell the property for, according to a formula that will let them build some equity but will also keep the home affordable for others to purchase the home in the future at the same income level. This sort of shared-equity model may not appeal to people who can afford open-market housing. But for those otherwise priced out of the housing market, it is an opportunity to build equity and wealth, and establish credit and financial stability.

• 6. Do you have to buy a home to be part of a CLT?

  While CLTs are best known for permanently affordable owner-occupied housing, some CLTs include rental housing to their portfolios. As the demand for well-maintained affordable rental housing continues to escalate, more CLTs are diversifying their holdings to include rental housing. These trusts serve renters by providing long-term leases with limits on rent prices.

• 7. Who controls a Community Land Trust?

  A typical community land trust is a nonprofit run by a board, staff, and community members. The community land trust balances the interest of its residents, the broader community, and the public interest to promote wealth building, retention of public resources, and solutions for community needs.

  The residents, who become members of the trust, elect board members to govern the organization and guide its development and investments to meet community needs and priorities.

• 8. What are the benefits of a Community Land Trust?
  • Community land trusts keep housing affordable in the long term, allowing lower-income households to continue to have access to neighborhoods that are increasing in price.
  • Community land trusts recycle a single public investment in affordability. The resale restrictions keep it affordable in perpetuity.
  • Most community land trusts support their residents, and homeowners and help keep residents in good standing.
  • CLTs generally have much lower rates of delinquency and foreclosure than homeowners in the regular market. The terms of the ground lease allow CLTs to intervene if a homeowner is struggling with their mortgage.
  • Community land trusts insulate land from speculation and provide a mechanism for ensuring a community voice in the use of land.

• Lincoln Institute of Land Policy: The Community Land Trust Reader, 2010 Davis
• Democracy Collaborative, Community-Wealth.org, Community Land Trust Overview

Local CLT Organizations:

• Bolinas Community Land Trust (BCLT) - West Marin
• Community Land Trust Association of West Marin (CLAM) - West Marin
• San Francisco Community Land Trust (SFCLT) - San Francisco
• Oakland Community Land Trust (Oakland CLT) - Oakland
• Bay Area Community Land Trust (Bay Area CLT) - Bay Area, based in Berkeley