The Community Land Trust model

The CLT acquires land to manage it in the interest of the community. It commits to never abandon its land. The buildings on the land are the individual property of residents, or in certain cases, of an organisation, such as an association or a cooperative.

The land is therefore collective property (because the CLT is managed by the community), while buildings erected on the land are the individual property of homeowners. In order to permit horizontal separation of the property, CLTs in the United States generally use long term leases. In Brussels, CLTB uses an existing legal form, the “droits démembrés” and primarily the “droit de superficie.” property dismemberment and leasehold estates. Monthly, the owner of the building pays “rent” or a lease fee to the CLT for using the land.

The separation of land ownership from building ownership not only makes the housing accessible first and foremost (homeowners do not pay the price of the land), but also guarantees stewardship by the CLT of the specific conditions of occupation or of the transfer of housing, for instance, the sale of housing units.

Affordable prices are an essential part of CLTs. Homeowners benefit from a grant in order to buy a home at an affordable price, but they commit to passing on the assistance when they resell their home.

The owners of CLT housing can sell their home, but with a price ceiling: the seller can recuperate what they invested, with a small additional amount. This sales price limitation guarantees that access to the property remains affordable for successive buyers, resale after resale.

In practice, CLTs use different formulas to determine the sales price. The most common formula offers to sellers a fraction of their housing’s appreciation, but certain CLTs propose pricing indexation, or even formulas that link the change in sales price to the average income of the surrounding area. Generally, formulas aim to establish fair arbitration between legitimate waitlists of sellers and the maintenance of housing accessibility. In other terms, formulas are intended to filter out “unearned income” as theorised by Henry George.

CLTs are accessible organisations. Occupants of CLT housing, as well as all others who live or work in the CLT neighbourhood, can become a member, participate in the development of the CLT, and elect their representatives to the Administration Council.

In general, a third of administrators represent residents, another third the surrounding neighbourhood, and the last third the public interest or government. This balanced distribution guarantees the participation of residents in the management, all while assuring that the interests of the inhabitants of the neighbourhood and the public interest are equally respected. Again, a fair balance between individual and public interest is essential.

The last characteristic is what we call stewardship, according to CLT litterature. The CLT assumes permanent responsibility of the land that it possesses and of the buildings constructed on the land. In order to ensure the longevity of projects, the CLT is interested in the fact that the homes are well maintained. CLTs are therefore very engaged in informing and leading residents. CLTs generally take care that homeowners do not take toxic loans by proposing training and support if necessary. CLTs are the “developers that never leave.”