How does it work?

Community land trusts sell homes to people who are credit-worthy with low to moderate incomes. While buyers own the house, the land beneath their home belongs to the community land trust and the homeowner holds rights to the land by paying a small fee through a leasehold agreement.

When homeowners sell their homes, the resale price is based on a formula designed to provide a fair and reasonable rate of return on the investment. Homeowners regain their initial investment and share in any appreciation or depreciation in home value with the community land trust through shared equity, while at the same time keeping the home’s price within reach for future income qualified buyers.

The stable and secure housing made possible by community land trusts enables many individuals and families to invest in their own future, improve their financial status and positively contribute to the economic development of the community.

Community land trusts support and educate the homeowner.  Home buyers become members of the community land trust when they purchase their home. Membership offers opportunities for leadership development by giving homeowners a voice in the governance and direction of the community land trust.

Owning a home is a lot of work. Community land trusts help homeowners meet the challenges by offering maintenance and repair workshops, coordinating member meetings, arranging loans, providing credit counseling and much more.

Community land trusts foster stable communities.  Safe and stable housing is the bedrock of every community. With community land trusts, the community owns the land, ensuring that it will always be used in ways that benefit the community.  Community land trusts also build and strengthen communities by providing a permanent stock of affordable, owner-occupied homes, making it possible for those who work in the community to live there as well.

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