For the last five years, I’ve been reading, studying, and working with a form of tenureship called the community land trust (CLT). I’ve become very personally involved, serving both on the research and policy development committee for the National Community Land Trust Network and as a board member for the Essex Community Land Trust in Essex County. But what are they, you might ask?
A CLT is a participatory, community-based nonprofit organization that owns and holds land in trust for the common good. It leases that land to households that purchase the improvements (houses and whatnot) located on the trust’s land. When these households sign the ground lease, they are granted all the rights of more traditional homeownership. The main limitation in the lease comes with the resale of the home. They can only realize a certain percentage of any increase in the home’s value (usually between 10-15%), and can only sell the home to a household that falls within a certain income range. This allows them to realize a certain amount of equity while keeping the home affordable for the next low- to moderate-income household.
It was originally created in the late 1960s as a means for black farmers in rural Georgia to gain and control land. While it remained on the fringe of the affordable housing scene for a few decades after that, its star has been on the rise for the last ten years or so. It has attracted the attention of HUD, the Ford Foundation, and a few other major players on the community development scene. Why did I get interested in it? After spending time walking through neighborhoods in Essex County that had been hit hard by the housing/foreclosure/credit crisis, I became interested in forms of tenureship that would prevent housing from being entwined in the volatility of finance markets and speculative ownership. CLTs and another form of tenureship called limited equity cooperatives caught my eye, and the rest is history. My research is currently focusing on how CLTs are handling their emerging popularity and whether or not their radical ideological heritage as the means to fundamentally altering property relationships will survive the attempt at making them a viable alternative to traditional homeownership.
Any questions? Feel free to leave a comment! I love talking about this stuff.