What is a CLT?

A Community Land Trust (CLTs) is an innovative model that creates opportunities for affordable homeownership while ensuring long-term stability and equity. In a CLT, the ownership of the land is separated from the ownership of the home built on the land. This allows homeowners to purchase homes at significantly reduced prices, while the land remains in the hands of the nonprofit land trust, which stewards it on behalf of the community. Through a 99-year ground lease with a small monthly rent, the homeowner is given exclusive rights to the land and in exchange agrees to a resale formula that shares a part of the equity with the next buyer.

By retaining ownership of the land, CLT's ensure that homes remain permanently affordable -even after the original homeowner sells and moves on. Many homeowners who resell their CLT homes earn enough equity for down payment and closing costs on a market-rate home, using this homeownership model as a stepping stone on their journey toward traditional homeownership.

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At the same time, CLT homes offer long-term stability for those who wish to stay. People on fixed incomes, retirees, and individuals with special needs often see these homes as a forever solution-providing lasting stability and the opportunity to build generational wealth by passing their home or accrued equity to family members.

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In rapidly developing areas, CLTs help preserve the long-term affordability of the houses, making them an especially effective, sustainable, and equitable use of affordable housing investments and subsidies.