Community Land Trust
10 Frequently Asked
What is a Community Land Trust?
CLT’s are not-for-profit
organizations created to hold land for the community or individuals
within the community. The land trust retains ownership of the land
How do CLT’s make homeownership
By removing the cost of the land, the
purchase price is lower than the homeowner would have to pay
otherwise. Grants or low interest loans may also be provided to more
deeply subsidize the cost of the house, making it affordable to
people at lower incomes.
What happens if the homeowner decides
to move out of their home?
If owners want or need to move away
permanently, they must sell the house. A land lease places some
limitations on the resale of the home. Land leases prevent the
resale to a household that does not qualify as low or moderate
income, and they limit the sales price to keep it affordable.
Subleasing is permitted only for limited periods of time with the
consent of the CLT.
How does the CLT make sure that the
home will be affordable –and available- for other lower income
The land lease lays out a “resale
formula” that determines the maximum price. The lease requires that
the home be sold for an affordable price to the CLT or to another
lower income household.
How do CLT’s acquire properties?
As tax-exempt organizations, CLT’s
may receive gifts of property from individuals or corporations.
Often CLT’s acquire city or county owned property from local
governments. In other cases, they purchase property in the open
What types of housing do CLT’s
A wide variety of housing – single
family homes, townhouses, condominiums, housing coops, affordable
rentals, shelters, etc.
Can CLT's homes be inherited?
Yes, the home is an asset that can be
left to the owner’s heirs or to anyone else the owner chooses. When
a home is inherited, most CLT’s will allow the heirs to live in the
home if they are (1) children of the deceased owner, or (2) have
already lived in the home for a period of time, or (3) qualify as
low or moderate-income households. Heirs who do not meet any of
these qualifications, or who do not intend to live in the home, must
sell the home in accordance with the resale restrictions. They will
receive the proceeds from the sale.
How are property taxes assessed?
Owners pay property taxes on their
homes. CLT’s usually pay taxes on their landholdings with the cost
usually covered by lease fees from those leasing the land.
Can CLT’s homebuyers get mortgage
loans even though they won’t own the land outright?
Leasehold mortgages can be, and have
been, insured by FHA, and have been purchased on the secondary
market by Fannie Mae, and a number of state housing finance
agencies, and some banks.
Why does the City of Orlando support
the development of a CLT organization?
The City recognizes that CLT’s are a
tool to accomplish the following:
- To retain the value of public
investment for long term community benefit
- To ensure that a portion of the
City’s housing will always be available and affordable to lower
- To revitalize neighborhoods
without making the housing unaffordable to the people who live
- To sustain owner occupancy and
prevent absentee ownership
Committee Member List
7, 2005 Workshop with City Council