Community Land Trust

Community Land Trusts (CLTs) are a powerful way to protect affordable homeownership by taking land and housing out of the hands of profit-driven market forces. In societies that view land as something to be bought or sold, CLTs treat it as a shared resource to be stewarded for a social purpose. According to community organizer and scholar John Davis, “What the CLT does better than any other organization … is to preserve affordability when economic times are good and protect its homes and homeowners when times are bad. In the scorched landscape of the [United States’] national mortgage crisis, CLTs are almost alone in reporting few defaults and even fewer foreclosures.”

In a CLT, housing and other buildings are under “dual ownership.” The CLT is a nonprofit entity that owns the land, while families (or a cooperative association, or developers) own the buildings. The CLT signs a long-term lease with the building owners for the use of the land. Through restrictions put on these leases, the land trust puts a cap on the resale price of homes and requires that homes be sold to lower-income families. Government subsidies can be used to bring down the price of the homes and put them within reach of low and moderate-income families. These subsidies are attached to the homes, so they stay affordable for future generations of buyers.

As nonprofit organizations governed by community members on behalf of a social mission, CLTs are more likely to be committed to their community’s agenda and vision—supporting the stability and welfare of their neighborhoods—compared to single-family or investor owners. Most CLTs require that CLT houses be occupied by their owners, meaning they cannot be an investment property.

Community land trusts are an adaptable model that allows a community to incorporate the things that are important to them.

CLTs can be started as stand-alone non-profit organizations or as programs, subsidiaries, or spin-offs from existing non-profits. Funding a CLT requires a creative combination of government and private grants, loans, and donations. Donations can be in the form of money, land, or legal and technical assistance.

There are over 250 CLTs throughout the United States. They began spreading in the second half of the 20th century, starting with organizers in the Black liberation movement in the late 1960s. Considered by many to be the first community land trust, New Communities Inc. was founded by leaders in the Student Nonviolent Coordinating Committee to provide for Black families who were getting kicked off their land by white farmers in Georgia. In spite of their effectiveness in stabilizing and empowering communities and protecting low and moderate-income families, CLTs in the United States represent a very small fraction of housing, accounting for only about 10,000 units.

Land trusts can also be found around the globe. In Kenya, the Tanzania-Bodeni Community Land Trust developed in response to local housing needs and seeks to address urban settlement problems. The women-led Maria Auxiliadora housing project in Bolivia adapts the CLT model to build a community for low-income women and families. The Martín Peña Channel Community Land Trust (Fideicomiso de la Tierra del Caño Martín Peña) in Puerto Rico provides housing for a community of nearly 30,000 people. CLTs have also developed in European countries including England and Switzerland.

CLTs are changing with the times. Communities and governments have taken advantage of the flexibility of the strategy. While there are “classic” features to a CLT, it is an adaptable model that allows a community to incorporate the things that are important to them. Issues such as geographic area, how the land is used, affordability, lease provisions, and governance structure can be determined through community planning processes.

With local and national governments establishing CLTs to meet affordable housing goals, there is a risk that some new CLTs are not truly grounded in their communities. CLTs also face the challenge of having to secure funding up-front for land and homes, in addition to getting the support of the families and communities who will use the land and housing. This significant up-front effort to organize people and resources is an important consideration in pursuing CLTs over other forms of affordable housing.

The CLT model calls on landowners to work for the greater good rather than the greatest financial return for the individual. It treats land as a shared resource and housing as a fundamental human right.