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Community Land Trusts Create
Permanent Affordable Housing
Permanent Affordable Housing
The Lincoln Institute of Land Policy completed a study on Community Land Trusts.
They discover that homeowners living in houses in Community Land Trusts (CLTs)
were less likely to be delinquent or be foreclosed on than homeowners in the overall
market.
A CLT is a non-profit corporation that acquires land which is then leased to
homeowners. The homeowners would build a house on the leased land.
According to the Mortgage Bankers Association, at the end of 2010 while 1.3% of
CLT homeowners were seriously delinquent, the number was 8.57% for other
homeowners. Foreclosure was also lower among CLT homeowners. That figure was
0.46%. For other homeowners nationwide it was 4.63%.
This seems to be a business model that works. So why are we not promoting and
asking for more Community Land Trusts? In our opinion, greed and big profits are
removed. Homeowners are not thinking of flipping a house and making a quick profit.
They are not considering using the equity from the house to move up to a bigger one.
None of this! They want to live and raise their families in a true community. A
community where neighbors pull together and help each other.
Another reason the concept is not gaining favor is that it leans to much to the left and
might be seen to some as a bit socialistic.
The Community Land Trusts as we see them todays were created over 30 years ago
by the Institute for Community Economics. The objective of a CLT is to provide
affordable housing for low and moderate income families. There are currently 5,000
homes across America in Community Land Trusts. This represents about 200
communities that are in a CLT or are planning to do so.
The land lease contains a very important provision for reselling a home. If the house
is sold it goes to another low or moderate income person. This provision ensures that
the benefit one homeowner receives is passed on to the homeowner that follows.
Benefits to a Community Land Trust homeowner.
Affordable price
Stable monthly payments. This is the monthly lease payments
Security from eviction.
An opportunity to build equity.
Benefits to the community.
Wise use of tax dollars. There are usually subsidies.
Great opportunity for renters to become homeowners.
Preservation of affordable houses. Nationally the housing market is unpredictable.
National Community Land Trust Network is the umbrella organization that keeps this
system running smoothly. It offers education and training to members.
Some community land trusts focus on growing food. For example, Southside
Community Land Trust in Providence, RI.
Some background on Community Land Trusts.
In 1937 Celo Community in North Carolina was founded by Arthur Ernest Morgan.
The community consists of 1,200 acres with 40 families. Celo has expanded the
concept and ideals of community by starting the Celo Health Center and Camp Celo.
Our current model of a community land trust was formed in Albany, Georgia in 1967.
Robert Swann and Slater King were looking for a way for African-American to secure
access to land to farm.
Qualifying for a community land trust.
Homeowners qualify for a land trust based on household income. For example, if you
are applying to Northern Communities Land Trust, in Duluth, for a family of 4 the
income can not exceed $49,200 for the year 2010. A family of 6 the income level
goes to $57,100.
The poverty level for a family of 6 living in the 48 contiguous states and the District of
Columbia is $29,530. So it appears that Northern Communities Land Trust is
attracting more than low income families. However, we must remember that each
community land trust has different guidelines.
The community land trust business model of housing seems to be a viable alternative
to the market system. While it is not for everyone, it offers stability to families and
communities across America.
They discover that homeowners living in houses in Community Land Trusts (CLTs)
were less likely to be delinquent or be foreclosed on than homeowners in the overall
market.
A CLT is a non-profit corporation that acquires land which is then leased to
homeowners. The homeowners would build a house on the leased land.
According to the Mortgage Bankers Association, at the end of 2010 while 1.3% of
CLT homeowners were seriously delinquent, the number was 8.57% for other
homeowners. Foreclosure was also lower among CLT homeowners. That figure was
0.46%. For other homeowners nationwide it was 4.63%.
This seems to be a business model that works. So why are we not promoting and
asking for more Community Land Trusts? In our opinion, greed and big profits are
removed. Homeowners are not thinking of flipping a house and making a quick profit.
They are not considering using the equity from the house to move up to a bigger one.
None of this! They want to live and raise their families in a true community. A
community where neighbors pull together and help each other.
Another reason the concept is not gaining favor is that it leans to much to the left and
might be seen to some as a bit socialistic.
The Community Land Trusts as we see them todays were created over 30 years ago
by the Institute for Community Economics. The objective of a CLT is to provide
affordable housing for low and moderate income families. There are currently 5,000
homes across America in Community Land Trusts. This represents about 200
communities that are in a CLT or are planning to do so.
The land lease contains a very important provision for reselling a home. If the house
is sold it goes to another low or moderate income person. This provision ensures that
the benefit one homeowner receives is passed on to the homeowner that follows.
Benefits to a Community Land Trust homeowner.
Affordable price
Stable monthly payments. This is the monthly lease payments
Security from eviction.
An opportunity to build equity.
Benefits to the community.
Wise use of tax dollars. There are usually subsidies.
Great opportunity for renters to become homeowners.
Preservation of affordable houses. Nationally the housing market is unpredictable.
National Community Land Trust Network is the umbrella organization that keeps this
system running smoothly. It offers education and training to members.
Some community land trusts focus on growing food. For example, Southside
Community Land Trust in Providence, RI.
Some background on Community Land Trusts.
In 1937 Celo Community in North Carolina was founded by Arthur Ernest Morgan.
The community consists of 1,200 acres with 40 families. Celo has expanded the
concept and ideals of community by starting the Celo Health Center and Camp Celo.
Our current model of a community land trust was formed in Albany, Georgia in 1967.
Robert Swann and Slater King were looking for a way for African-American to secure
access to land to farm.
Qualifying for a community land trust.
Homeowners qualify for a land trust based on household income. For example, if you
are applying to Northern Communities Land Trust, in Duluth, for a family of 4 the
income can not exceed $49,200 for the year 2010. A family of 6 the income level
goes to $57,100.
The poverty level for a family of 6 living in the 48 contiguous states and the District of
Columbia is $29,530. So it appears that Northern Communities Land Trust is
attracting more than low income families. However, we must remember that each
community land trust has different guidelines.
The community land trust business model of housing seems to be a viable alternative
to the market system. While it is not for everyone, it offers stability to families and
communities across America.
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