WHAT IS A COMMUNITY LAND TRUST?
Community land trusts (CLT) are designed to provide community stewardship of land. They are primarily used to ensure long-term housing affordability. To do so, a CLT maintains ownership of acquired land permanently.
When a house is built on the land, only the house is sold, and the homebuyer enters into a long-term, renewable lease of the land. When the house is resold, the CLT and the homeowner share the increased equity using a market rate, appraisal based resale formula. This allows for the house to remain affordable for the subsequent homebuyers who follow.
Watch for more about community land trusts.