A Community Land Trust (CLT) is a private nonprofit organization created to acquire and hold land for the benefit of a community while providing access to permanently affordable housing. This 30-year old model is at work in over 225 communities throughout the nation.
Minnesota CLT organizations have created more than 700 affordable home that will remain affordable when they are sold. That is the uniqueness of the community land trust: when a homebuyer wants to sell a home purchased through a CLT to another qualified person or family.
This “people focused approach” is one that we believe makes the critical difference. CLT homeownership is not only good for the homebuyers but for the whole community and here are five reasons why:
- We require 30 year fixed-rate mortgages. Our commitment to long-term success means greater stability.
- CLT homeowners have one thirtieth the risk of foreclosure compared to traditional homeowners.
- Our owner-occupancy requirement leads to greater community investment.
- Land trusts recycle the funds that build affordability; a real plus in times of scare resources.
- We support homeowners with pre and post-purchase education and, in some cases, reserve accounts to support them in saving for household improvements and repairs.