WHAT IS A COMMUNITY LAND TRUST?
A COMMUNITY LAND TRUST (CLT) IS A PRIVATE, NON-PROFIT ORGANIZATION
It is created to acquire and hold land for the benefit of a community while providing access to permanently affordable housing. CLTs are governed by a board of directors made up of community members and CLT homeowners, which are elected by members of the CLT.
THE CLT BUYS HOMES IN DESIRABLE LOCATIONS AND MAKES NEEDED UPDATES TO THE HOME
Two Rivers Community Land Trust sells homes that are move-in ready and affordable for income-eligible homebuyers. We look for properties that are located in desirable neighborhoods with access to public transportation, schools, jobs, and other neighborhood amenities. Before Two Rivers puts a home on the market, we make sure that needed improvements are completed, such as energy efficiency updates, repairs, and if needed, remediation of lead paint issues. Two Rivers makes improvements, inside and out. Homeowners who buy a TRCLT home get a quality home at an affordable price, as well as ongoing homeowner support from TRCLT.
THE CLT SELLS THE HOME AT A LOWER PRICE THAN COMPARABLE HOMES
Homebuyers with CLT programs purchase only the house and enter into a long-term agreement — a 99-year ground lease — with the CLT to lease the land. By taking the cost of the land out of the real estate transaction, land trust homes are more affordable than houses on the open real estate market. These homes cost less than market rate homes and are sold to families with limited incomes. When a family decides to sell a CLT home, they sell only the house to another family with a limited income for the price that is determined by the resale formula in the ground lease. By keeping the house "in trust," the home stays affordable for future generations.
Community
land trusts, as described by homeowners themselves.
BENEFITS OF THE CLT MODEL
TO HOMEBUYERS:
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Lower costs to enter homeownership
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Greater housing security than renting
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Buying a home that has already had major improvements and needed updates
TO HOMEOWNERS:
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Greater housing security than renting
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Stable monthly payments
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The ability to build a credit history
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Security from eviction
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The opportunities that a stable neighborhood brings...schools, relationships, better security
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Opportunity to build equity through homeownership
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Home and ground lease can be willed to heirs
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Ongoing support from the CLT
TO HOMESELLERS:
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In exchange for the lower price they paid upon purchase, the seller receives 25% of the increase in value of the home, plus their earned equity (the money - the principal - they have paid toward their mortgage)...as well as the value of any approved improvements that have also added value to the home while owned (there is a formula and policy for this).