What is a land trust
A community land trust is a private non-profit corporation created to acquire and hold land for the benefit of a community and provide secure affordable access to land and housing for community residents. A community land trust works to make homeownership affordable to low and moderate income people and to improve neighborhoods. CLTs also prohibit speculation and absentee ownership of the land and housing, promote ecologically sound land-use practices, and preserve the long-term affordability of housing.
Specifically, a land trust acquires land and houses through purchase or donation. The resident can buy the house and other improvements on the land ONLY, the land trust holds ownership of the land to ensure permanent affordability. The land is then leased by the homeowner utilizing a 99-year renewable ground lease agreement. Land trust houses stay affordable through a limited appreciation resale formula in which homeowners share in a percentage of the increase in market value of the house at the time of resale. This resale restriction ensures that the house will be affordable to the next family needing affordable housing… and the next… and the next.
For more information about Land Trusts visit the following websites:
www.burlingtonassociates.com: Burlington Associates
www.cltnetwork.org: National Community Land Trust Network
www.iceclt.org Institute for Community Economics
www.ochlt.org Orange Community Housing and Land Trust