2010-252A (08) - Laserfiche WebLink

Home Browse Search

Comprehensive Plan Housing Element Community Land Trust (CLT) One tool to provide homeownership opportunities to households that would otherwise be renters is a Community Land Trust. A Community Land Trust (CLT) is a nonprofit organization that seeks to preserve housing affordability over the long term. A CLT preserves housing affordability by selling homes to low or moderate income families, but retaining ownership of the land under these homes. The CLT then leases the land to a homeowner for 99 years, while the homeowner owns the structure. Buyers of land trust homes agree that, when they move, they will sell their home to another low or moderate income family at an affordable price. Consequently, resale of CLT units is limited to income eligible households, and resale prices are limited to keep CLT units affordable for the next homebuyer. By owning the land under the house, the land trust ensures that the subsidy is retained for the benefit of subsequent families. Therefore, the owner of a CLT unit may share in the equity produced by the sale of a CLT unit, but will not realize a market rate of return. According to the Central Florida Workforce Housing Toolkit, some of the most established CLT's are Durham, North Carolina; Burlington, Vermont; The New Town, Tempe, Arizona; Sawmill, Albuquerque, New Mexico; Middle Key, Florida; and Hannibal Square, Winter Park, Florida. Generally, CLTs are used: In fast-growing areas, where the price of real estate is escalating rapidly. They can be used in gentrifying areas to preserve a community's character. Limits on resale prices ensure that some housing remains affordable, even in these areas. In disinvested neighborhoods, where CLTs can be used to increase owner occupancy, decrease absentee ownership, improve the physical condition of housing and stabilize the community. Such CLTs assist not only the buyers of the CLT homes, but also existing homeowners in the area, who likely are lower income families. ■ In expensive resort communities, where CLTs can provide housing for the community's workers. Benefits: - Provides permanent stock of affordable & workforce housing - Lowers housing cost - Provides some return of equity - Provides for deduction of mortgage interest payments - Provides financial stability (no fear of rent increase) - No cost to the county 41 Community Development Department Indian River County