Another Alternative to Trickle-Down Luxury Housing: CLT’s

In recent days, Kerry Kemp (U Street AIR) has been researching community land trusts (CLTs) as a method for communities to collectively own and control land.

Collective ownership of the land allows the community, rather than private interests, to determine how the land will be utilized to serve the community’s needs.  

CLTs are well-tested and proven tools for preserving community control and affordability.  

Community Land Trust Model.  A CLT is a nonprofit organization governed by a board of community members, including CLT residents and public representatives, that acquires and stewards land in trust for the permanent benefit of the community.  These community-held assets remain affordable for generations and can be put to a variety of uses, including homeownership, rental housing, locations for small businesses, cultural institutions, and more.

The primary way CLTs secure affordability over time is to separate ownership of the land from the buildings (which can be for housing, commercial space for small businesses and nonprofits, etc.) atop the land. Under the CLT model, a single subsidy—generally from various sources of public and philanthropic capital—is needed to support the CLT’s initial purchase of the property on behalf of a specific community. The CLT then owns the land in perpetuity (forever).

The CLT takes title to the land and issues a low-cost (typically under $100), long-term (typically for 99 years) land lease back to the owner(s) of the buildings that incorporates a covenant to keep home and retail/office prices within the community permanently affordable. 

One of the most important ways of keeping home and retail/office prices affordable is the imposing restrictions on the resale of property on the land.  For more information, click this link www.investopedia.com/community-land-trust-5206374#toc-how-community-land-trusts-work

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