Townsite Community Land Trust

What is a Community Land Trust?

A community land trust (CLT) is a nonprofit, tax-exempt community-based organization that holds land in trust and stewards the use. Community land trusts use the land to meet community needs; this flexible model can be modified to address housing affordability, as well as for gardens, rental or retail spaces, even historic preservation, as examples.  To meet these goals into the future CLTs retain permanent ownership of the land.

When homes are sold the CLT and the new owner enter into a long-term (usually 99-year), renewable and inheritable ground lease for the home owner’s exclusive use of the land.  When the home is going to be sold, the resale formula agreed to in the ground lease is used to set the sale price. This formula allows the seller to earn a portion of increased property value. The remaining increase in value is retained by the CLT and allows it to continue to offer the house to lower to moderate-income households one sale after another.

Separating the land ownership from the “improvements” and having a resale formula removes the market forces that often make prices rise above what community members can afford.  CLTs take a long-term approach to meeting community needs and land ownership.  There are currently more than 250 community land trusts across the United States and Internationally.