ABOUT COMMUNITY LAND TRUSTS

THE FIRST IN NORTH DAKOTA

The community land trust (CLT) model of affordable housing may be relatively new to North Dakota, but it has been an active, effective model throughout other parts of the country for over thirty years. The model has also crossed borders and oceans with CLTs in Australia, Canada, and Great Britain. Like many housing programs established during the mid-20th Century, the CLT model was born out of a search for creative and innovative ways to address the rising costs of housing, limited land, and the growing number of abandoned or substandard buildings in communities affecting the overall quality of housing stock.
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In 2010, approximately 250 CLTs were active in 44 states across the country. CLTs are not at all limited to metropolitan areas; in fact, many are being created or are already active in communities similar in size, or smaller, than Grand Forks.
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​THE DEFINITION OF CLT

CLTs are community-based 501c3 nonprofits whose intent is to provide perpetually affordable housing options. Their purpose is to provide access to land and housing to people who are otherwise denied access; to increase long-term community control of neighborhood resources; to empower residents through involvement and participation in the organization; and to preserve the affordability of housing permanently.What make a CLT unique? These key characteristics set us apart

• Homeowner buys house, CLT retains ownership of the land. This reduces the price of the mortgage instantly.
• Ground Lease – the essential document that establishes the relationship between the organization and homeowner, as well as disclose agreements at time of purchase and resale. A nominal fee is paid monthly to cover the use of the land.
• Board Governance structure is tripartite to ensure decision-making keeps all lessee’s best interest at hand.
  • 1/3 Lessee Representatives
  • 1/3 Technical Representatives
  • 1/3 Community Representatives
• Stewardship. Known as, “The developer that doesn’t go away,” CLTs are a part of every step of the homebuying process; from pre-purchase counsel and homebuyer education to post-purchase assistance and foreclosure prevention, CLT staff is always there for you.

GFCLT has many common characteristics with CLTs across the country, including:

• Provision of access to land and housing to people who are otherwise unable to afford these opportunities
  • On average, CLT homeowners earn around 40% of the area median income.
• Balanced approach to homeownership allowing CLTs to own land and lease it for a nominal fee, reducing the overall home price for families who own homes on the land
  • CLTs maintain ownership of the land on which a CLT home sits. This allows for an initial reduction in price by subtracting the value of the land from the market-value of the home. Additional subsidy will then be added according to a family’s income and the purchase price they can afford, as determined by GFCLT.
• Commitment to the perpetual affordability of housing in the community in which we operate;
• Empowerment of homeowners and community members, who make up a minimum of 1/3 of each CLT board of directors, and ensure CLT homeowners maintain an active voice in CLT governance.
• Benefits to homeowners including the security of owning your own home and use of land much like a market-rate homeowner, combined with the protection of a CLT providing homebuyer education, foreclosure prevention, and a guaranteed sale when homeowners choose to move.
  • When a CLT homeowner decides to move they are required to sell their home to another CLT-qualified homebuyer. GFCLT will maintain a waiting list of eligible families from which the next buyer can be chosen. If no families are available on the waiting list, GFCLT will purchase the home and retain ownership until a new CLT-qualified family is ready to buy. This structure offers a guaranteed sale, allowing CLT homeowners to move on to new ventures without the fear of not being able to sell their home.
• Equity production for homeowners partnered with preservation of affordability for future buyers, providing the opportunity for wealth creation to each subsequent homebuyer.
  • In a recent study over 90% of CLT families remained in their homes for at least 5 years. Of these families, over 70% went on to purchase owner-occupied, market-rate homes.
• A sustainable model that only requires subsidy once rather than new subsidy upon each resale
  • Because CLT homeowners are required to follow a resale formula, when they decide to move their home will be resold at a price that appreciates per their initial investment rather than the full market-value, thus appreciation is reduced and homes remain affordable in perpetuity.​