Community land trust

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A community land trust is a property trust which aims to benefit the surrounding community by ensuring the long-term availability of affordable housing.

[edit] Key Features of the Community Land Trust

from Burlington Associates in Community Development and others working in the CLT field

The community land trust (CLT) is an equitable and sustainable model of affordable housing and community development that has slowly spread throughout the United States during the past 30 years. The CLT model was originated in the United States by Robert Swann. The first community land trust was formed in 1967 in Albany, Georgia by Swann and Slater King, seeking a way to achieve secure access to land for African American farmers.

According to the E. F. Schumacher Society website: "Swann was inspired by Ralph Borsodi and by Borsodi's work with J. P. Narayan and Vinoba Bhave, both disciples of Gandhi. Vinoba walked from village to village in rural India in the 1950s and 1960s, gathering people together and asking those with more land than they needed to give a portion of it to their poorer sisters and brothers. The initiative was known as the Boodan or Land Gift movement, and many of India's leaders participated in these walks.

Some of the new landowners, however, became discouraged. Without tools to work the land and seeds to plant it, without an affordable credit system available to purchase these necessary things, the land was useless to them. They soon sold their deeds back to the large landowners and left for the cities. Seeing this, Vinoba altered the Boodan system to a Gramdan or Village Gift system. All donated land was subsequently held by the village itself. The village would then lease the land to those capable of working it. The lease expired if the land was unused. The Gramdan movement inspired a series of regional village land trusts that anticipated Community Land Trusts in the United States.

The first CLT in this country allowed African-American farmers in the rural South to gain access to farmland and to work it with security.

Robert Swann worked with Slater King, a cousin of Martin Luther King, Jr., to develop New Communities in Albany, Georgia. They relied on the legal documents of the Jewish National Fund in structuring the organization. The Fund began to acquire land in Israel at the turn of this century and now holds 95 percent of the land in Israel. It has a long and established legal history of leasing land to individuals, to cooperatives, and to intentional communities such as kibbutzim. Swann and a group from Albany traveled to Israel in the 1960s to study the results of this leaseholding method. They decided on a model that included individual leaseholds for homesteads and cooperative leases for farmland. The group then purchased a 5,000-acre farm in rural Georgia, developed a plan for the land, and leased it to a group of African-American farmers. The legal documents have been tested and refined since the 1960s, and hundreds of Community Land Trusts are now operational, with many others in the planning stage. The perseverance and foresight of that team in Georgia, motivated by the right of African-American farmers to farm land securely and affordably, initiated the CLT movement in this country."

Swann founded the Institute for Community Economics in 1973. By 1980, ICE had begun popularizing and revising the notion of a CLT. From 1980-90, Chuck Matthei, an activist with roots in the Catholic Worker movement and the peace movement, served as Executive Director of ICE, then based in Greenfield, MA and now located in Springfield, MA. ICE pioneered the modern community land trust and community loan fund models. During Chuck's tenure, the number of community land trusts increased from a dozen to more than 100 groups in 23 states, creating many hundreds of permanently affordable housing units, as well as commercial and public service facilities. With colleagues Chuck guided the development of 25 regional loan funds and organized the National Association of Community Development Loan Funds, now known as the National Community Capital Association. From 1985-90, Chuck served as a founding Chairman of the Association and from 1983-88 he served as a founding board member of the Social Investment Forum, the national professional association in the field of socially responsible investment. Chuck also launched an effort in the early to mid-1980s to address many of the legal and operational questions about CLTs that were arising as banks, public officials and others encountered the growing effort to create such community based organizations around the country.

Since 1992, the defining features of this model have been enshrined in federal law. There is considerable variation among the 130 organizations that call themselves a community land trust, but ten key features are to be found in most of them.

Nonprofit, Tax-exempt Corporation A community land trust is an independent, not-for-profit corporation that is legally chartered in the state in which it is located. Most CLTs are started from scratch, but some are grafted onto existing nonprofit corporations. Most CLTs target their activities and resources toward charitable activities like providing housing for low-income people and redeveloping blighted neighborhoods, making them eligible to receive 501(c)(3) designation from the IRS.

Dual Ownership A nonprofit corporation (the CLT) acquires multiple parcels of land throughout a targeted geographic area with the intention of retaining own-ership of these parcels forever. Any building already located on the land or later constructed on the land is sold off to an individual homeowner, a cooperative housing corporation, a nonprofit developer of rental housing, or some other nonprofit, governmental, or for-profit entity.

Leased Land Although CLTs intend never to resell their land, they provide for the exclu-sive use of their land by the owners of any buildings located thereon. Parcels of land are conveyed to individual homeowners (or to the owners of other types of residential or commercial structures) through long-term ground leases. This two-party contract between the landowner (the CLT) and a building’s owner protects the latter’s interests in security, privacy, legacy, and equity, while enforcing the CLT’s interests in preserving the appropriate use, the structural integrity, and the continuing affordability of any buildings located upon its land.

Perpetual Affordability The CLT retains an option to repurchase any residential (or commercial) structures located upon its land, should their owners ever choose to sell. The resale price is set by a formula contained in the ground lease that is designed to give present homeowners a fair return on their investment, while giving future homebuyers fair access to housing at an affordable price. By design and by intent, the CLT is committed to preserving the affordability of housing (and other structures) – one owner after another, one generation after another, in perpetuity.

Perpetual Responsibility The CLT does not disappear once a building is sold. As owner of the un-derlying land and as owner of an option to re-purchase any buildings lo-cated on its land, the CLT has an abiding interest in what happens to these structures and to the people who occupy them. The ground lease requires owner-occupancy and responsible use of the premises. Should buildings become a hazard, the ground lease gives the CLT the right to step in and force repairs. Should property owners default on their mort-gages, the ground lease gives the CLT the right to step in and cure the default, forestalling foreclosure. The CLT remains a party to the deal, safeguarding the structural integrity of the buildings and the residential security of the occupants.

Community Base The CLT operates within the physical boundaries of a targeted locality. It is guided by – and accountable to – the people who call this locale their home. Any adult who resides on the CLT’s land and any adult who re-sides within the area deemed by the CLT to be its “community” can be-come a voting member of the CLT. This “community” may encompass a single neighborhood, multiple neighborhoods, or, in some cases, an entire town, city, or county.

Resident Control Two-thirds of a CLT’s board of directors are nominated by, elected by, and composed of people who either live on the CLT’s land or people who re-side within the CLT’s targeted “community” but do not live on the CLT’s land.

Tripartite Governance The board of directors of the "classic" CLT is composed of three parts, each containing an equal number of seats. One third of the board repre-sents the interests of people who lease land from the CLT (“leaseholder representatives”). One third represents the interests of residents from the surrounding “community” who do not lease CLT land (“general representa-tives”). One third is made up of public officials, local funders, nonprofit providers of housing or social services, and other individuals presumed to speak for the public interest ("public representatives"). Control of the CLT’s board is diffused and balanced to ensure that all interests are heard but no interest is predominant.

Expansionist Acquisition CLTs are not focused on a single project located on a single parcel of land. They are committed to an active acquisition and development pro-gram, aimed at expanding the CLT’s holdings of land and increasing the supply of affordable housing (and other types of buildings) under the CLT’s stewardship. A CLT’s holdings are seldom concentrated in one corner of a community. They tend, instead, to be scattered throughout the CLT’s service area, indistinguishable from other owner-occupied housing in the same neighborhood.

Flexible Development There is enormous variability in the types of projects that CLTs pursue and in the roles they play in developing them. Many CLTs do develop-ment with their own staff. Others delegate development to nonprofit or for-profit partners, confining their own efforts to assembling land and pre-serving the affordability of any structures located upon it. Some CLTs focus on a single type and tenure of housing, like detached, owner-occupied houses. Other CLTs take full advantage of the model’s unique flexibility. They develop housing of many types and tenures or they focus more broadly on comprehensive community development, undertaking a diverse array of residential and commercial projects. CLTs around the country have constructed (or acquired, rehabilitated, and resold) single-family homes, duplexes, condos, co-ops, SROs, multi-unit apartment buildings, and mobile home parks. CLTs have created facilities for neigh-borhood businesses, nonprofit organizations, and social service agencies. CLTs have provided sites for community gardens and vest-pocket parks. Land is the common ingredient, linking them all. The CLT is the social thread, connecting them all.