A Community Land Trust works like this:
- A family or individual with low to moderate income purchases a home with the help of an affordability grant
- The purchase price is more affordable because the homeowner is only buying the house, while the CLT holds the land in trust on behalf of the community
- The homeowners lease the land from the community land trust in a long-term 99-year, renewable lease.
- In return for being able to buy a home below its market value, the homebuyer agrees to limit their proceeds when they sell so another family with modest income can afford to purchase the home.
- The first family builds wealth and then “pays it forward.” When the home is sold, the family receives the amount paid towards their mortgage + 25% of the appreciated value of the home.
- The affordable house is self-sustaining, and the one-time affordability investment serves an endless number of families.
What are the advantages of Community Land Trust homeownership?
- Helps low to moderate income earners become homeowners
- Lowers the cost of purchasing a home
- Pre and Post Purchase Support from Rondo CLT.
- Owners build personal wealth through home equity and by saving on housing costs
- Builds community wealth by protecting long term affordability and property values
- Paying it forward – The resale formula preserves the affordability for the next family or individual that purchases the home
- Ensures public investments go further and do more
Who governs the Land Trust?
Rondo Community Land Trust (CLT) is governed by a board of CLT leaseholders (homeowners, renters, and commercial tenants), community residents and public/private sector representatives.