Community Land Trust Basics

Stewarding the Land
The community land trust model ensures that the home stays permanently affordable. The land trust belongs to the community, and holds the land in stewardship as a community asset. The land - and the house on it - will be affordable for generations to come.

Homeowner’s Position
The homeowner purchases the house and pays a modest lease fee (currently $39 a month) to lease the land on a 99-year renewable lease. As a homeowner, you have full rights to use of the land, without having to purchase the land. You enjoy all the tax benefits of homeownership, you have the opportunity to build equity in your home, and you are able to participate in a fixed portion of the appreciation if you decide to sell the home.

Housing is affordable when you spend 30% or less of your income on your principal, interest, taxes and insurance. For example, CCLT builds homes that are affordable for people with low or moderate income. A family who earns $33,800 could afford one of the three bedroom homes we are currently building. If they are a four-person family, they are earning less than 52% of the area median income.

Homeownership housing costs are a good buffer against inflation. Generally, if the mortgage is fixed rate, the total principal and interest payment does not increase over the life of the loan. The only factors that are affected by inflation are insurance and taxes. Compare that to a rent payment – the whole rent amount can go up each year!

For most of us, our incomes grow over time. Over the life of your homeownership experience this stabilized housing cost can become less and less of your income, affording you greater opportunity to save for the future. This housing cost savings impact can contribute significantly to your children’s education and your retirement.

Permanent Affordability
If the homeowner decides to sell the home, they agree to sell the home at a price set by the resale formula. CCLT’s resale formula rewards long-term owners by offering incremental increases in the homeowner’s portion of the appreciation at the time of sale. The resale formula balances the fair return on investment made by the homeowner with the community need to keep the home affordable for the next family. Through the community land trust model, the subsidy used to create the affordable home is only invested once, and it stays there forever. Talk about a permanent return on investment!

Upon sale, the seller agrees to sell the home to another qualified homebuyer or sell it back to the land trust. CCLT maintains an active list of qualified potential homebuyers who are able to buy our homes. If the homeowner does not want to sell, the home can be passed on as a legacy to their children.

Who Are These Wise Homeowners?
We work with folks who earn 80% or less of the area median income. For a family of four, 80% of area median income is $54,300. This would be a typical income for a full-time registered nurse or a social worker with three children, or a teacher’s aide and a bank teller with two children. For a table of median income by family size, click here.

In our first four years, we have created homeownership opportunities for 12 families. On average, at time of purchase, these households earned 58% of the area median income. Included in this group is a grandmother who is raising her grandson, a six-person family who had been living in a 900-square-foot trailer, and a formerly homeless family with seven children. Half of our households are female-headed. Four of the adults have enrolled in college to improve their earning potential. CCLT has created stable homes for families who have a combined total of 27 children – more than enough for a soccer match! Click here to go to the homeowners’ story page.

Sustainable for Me and You
We are certified as an Earth Advantage builder by Portland General Electric. This certification means we have attained the highest standards of energy efficiency, resource efficiency, clean air quality and environmental responsibility in our new construction homes. We believe a healthy home is good for the homeowners, good for the community and good for nature!