What is a Community Land Trust?
Community Land Trusts (CLTs) are nonprofit organizations that acquire and steward land to promote affordable housing, community gardens, civic buildings, and other community assets. By balancing individual homeownership with community needs, CLTs aim to prevent displacement, promote equitable development, and build community wealth.
Key Features of Community Land Trusts:
Affordable Housing: CLTs provide long-term affordable housing options by separating the ownership of land and buildings. Homebuyers purchase homes at below-market rates and lease the land from the CLT, ensuring affordability for future residents which involve resale restrictions.
Resident Stability: Studies have shown that CLT homeowners are significantly less likely to face foreclosure. During the 2008-2010 housing crisis, CLT homeowners were 10 times less likely to be in foreclosure proceedings and eight times less likely to be seriously delinquent compared to conventional homeowners.
Wealth-Building: Real estate faciliates building wealth. Specifically, CLTs facilitate wealth accumulation among low- and moderate-income families. Research indicates that 95% of CLT homes are affordable to households earning 80% or less of the area median income, and nearly half are affordable to very low-income households earning up to 50% of the area median income. The opportunity to “level” the playing field narrows the wealth gap for those people who do not earn high salaries.
Historical Context:
The CLT model originated in the United States in 1969 with the establishment of New Communities in Georgia. This initiative aimed to provide African-American farmers with secure and affordable land ownership, serving as a prototype for modern CLTs.
Impact and Growth:
As of 2024, there are over 300 CLTs across the U.S., with numbers steadily increasing. These trusts have collectively preserved thousands of affordable housing units, contributing to neighborhood stability and resistance to gentrification. In fact, CLTs are now global with an ever growing presence in Europe and other continents.
Local Examples:
Champlain Housing Trust (Vermont): Recognized as the largest CLT in the U.S., it manages approximately 565 ownership units and over 2,200 rental units, offering shared equity programs and comprehensive support services to residents.
San Francisco Community Land Trust: This organization has expanded to oversee 150 units, including properties in the Tenderloin district that primarily house Spanish- and Mayan-speaking service workers, preserving affordable housing in high-demand areas.
In Texas, there are several CLTs spread throughout Houston, Austin, and the Dallas - Fort Worth
Benefits of CLTs:
Long-Term Affordability: By retaining ownership of land and placing resale restrictions on homes, CLTs ensure that housing remains affordable for future generations.
Community Control: CLTs empower residents by involving them in decision-making processes regarding land use and development, fostering a sense of ownership and community cohesion.
Economic Stability: The CLT model provides a buffer against market volatility, offering residents stability and protection from market-driven displacement.
Conclusion:
Community Land Trusts represent a sustainable approach to affordable housing, combining individual homeownership opportunities with community stewardship. By addressing issues of affordability, displacement, and wealth inequality, CLTs play a crucial role in fostering equitable and stable communities.
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