Time recently ran an article on Community Land Trusts and argues that they can help combat the affordable housing crisis.
A Community Land Trust (CLT) is a nonprofit organization that acquires and holds land for the benefit of a community, with the aim of providing affordable housing and promoting long-term community stability. As housing prices soar and affordability becomes a pressing issue in many urban areas, CLTs offer a practical and sustainable solution to combat the affordable housing crisis.
The structure of a CLT allows for the separation of land ownership from housing ownership. In a typical CLT model, the trust owns the land while individuals or families can purchase homes on that land.
This arrangement keeps housing costs lower because the land, which is often the most expensive component of real estate, is not included in the purchase price.
Homeowners enter into a long-term lease with the CLT, ensuring that they can enjoy the benefits of homeownership without the burden of skyrocketing land prices.
While CLTs have been recently growing in popularity, the model itself is not new.
According to the article, CLTs’ roots can be traced back to the Civil Rights Movement in the South, as a response “to our country’s long history of racist housing policy and social and economic injustice,” according to Christie Peale, CEO and Board Chair of the Interboro Community Land Trust in New York City.
One of the significant advantages of CLTs is that they promote community control and involvement. Local residents often have a say in how the land is used and developed, fostering a sense of ownership and responsibility.
This participatory approach can lead to more equitable development and a stronger community fabric, as residents work together to address their housing needs and other community issues.
One problem identified by the article is that many federal programs effectively “time out.” For instance, “Many affordable housing developments financed using the Low Income Housing Tax Credit have a 30-year affordability window—a window that is closing for many low income developments.”
The article cites the National Low Income Housing Coalition which “estimates that nearly 500,000 LIHTC-financed units, representing nearly a quarter of all such units in place, will reach the end of their 30-year limit by the end of the decade.”
Once those affordability windows time out, King-Ries says: “The people who’ve been living there and built a life and a community… Suddenly they’re not welcome anymore. They can’t afford to live there.”
CLT’s combat that by ingraining long-term affordability into the structure of the long-term leasing model.
CLTs help to stabilize neighborhoods by preventing displacement. As the housing market becomes increasingly competitive, long-term residents are at risk of being priced out of their communities. By ensuring that homes remain affordable, CLTs protect vulnerable populations and maintain the diversity and character of neighborhoods.
This stability, proponents argue, is crucial for fostering community ties and ensuring that low- and moderate-income families have access to safe and decent housing.
The Time article highlights several successful examples of CLTs across the United States, illustrating how they have effectively addressed housing shortages and affordability crises in various regions. These examples showcase the adaptability of the CLT model, which can be tailored to meet the specific needs of different communities. Through innovative partnerships with local governments, nonprofits, and private entities, CLTs can secure funding and resources necessary for development, further enhancing their effectiveness.
Community Land Trusts represent a viable and impactful solution to the affordable housing crisis. By prioritizing community needs, separating land from housing ownership, and promoting long-term affordability, CLTs can provide a pathway to stable and equitable housing for families and individuals facing economic challenges. As cities continue to grapple with housing shortages, the CLT model offers a blueprint for sustainable development that prioritizes people over profits.
