By: June Porter
What is a Community Land Trust?
Originally Land Trusts have been for the purpose of conservation but have over time evolved into a Community Land Trust (CLT) model. This model governed by a local board of directors is to specifically address community and social needs such as affordable housing challenges communities are increasingly experiencing. CLTs are able receive donations or raise funds to purchase land to create and preserve permanently affordable housing. The definition of affordability may depend on local need.
The CLT model is one of great versatility, leading to wide variation in the ways in which they are both structured and applied. John Emmeus Davis in his publication ‘Starting a Community Land Trust: Organizational and Operational Choices. Burlington’ in 2007 stated that a CLT combines a new approach to the ownership of land, housing, and other real estate with a new approach to the organization of the nonprofit steward of this property.
An example is the Muskoka Community Land Trust which was formed by their Affordable Housing Task Force.
There are now 41 CLTs in Canada, 46% of which are within Ontario, with nine currently in development.
Difference between a Community Land Trust and a Municipal Land Bank
Municipal Land Banks:
Using a range of special powers, such as ability to acquire and hold property tax free, clear title and back taxes, and dispose of property intentionally, not just to the highest bidder. They may, for example, demolish obsolete structures; remediate soil; give side lots to neighbouring owners, donate land to nonprofits, or assemble properties for large developers or simply bank land for future possible municipal housing objectives.
Community Land Trusts:
CLTs may retain ownership of land, sell the structures on it, and offer long-term ground leases to those structures’ owners. To create permanently affordable homeownership CLTs sell houses with a resale price restriction. CLTs also develop and maintain affordable rental housing, commercial spaces, gardens, and community facilities.
Can they work together?
Land banks are in need of ways to dispose of land that will help the community and keep it out of the speculative cycle, so it is less likely to end up vacant again. Land trusts are often looking for either land to develop on or buildings to bring into their portfolio. Land out, land in. https://shelterforce.org/2014/10/02/answer_land_banks_land_trusts/
Types of Community Land Trusts
Community Land Trusts three (3) models which include:
Co-operative CLTs which serve to promote the long-term affordability of co-op housing and to help individual co-ops maintain their non-profit status.
Lease-to-Own CLTs are premised on assisting low-income households move into homeownership. Such households pay a rental rate to the CLT over a given period of time after which they may choose to purchase the unit with a portion of the rent paid to date credited towards a down payment. The household takes ownership of the unit but continues to lease the land from the CLT through a long-term leasehold agreement.
Facilitative CLTs bring together the tools and resources to provide affordable housing, but do not develop or manage housing on their land. Instead, the CLT partners with local groups possessing the organizational capacity, expertise and resources to successfully develop and manage housing projects.
Creating the Platform for Successful Establishment of a Community Land Trust
The success of a CLT is highly dependent on securing a broad base of political and community will. Underpinning that is the need for financial and professional support for the inception and ongoing continued existence of and growth of a CLT.
Educational resources may include:
- Canadian Network of Community Land Trusts: https://www.communityland.ca/
- Burlington Associations in Community Development LLC: https://www.burlingtonassociates.com/
- CMHC https://www.cmhc-schl.gc.ca/nhs/nhs-project-profiles/2021-nhs-projects/creation-community-land-trust-affordable-housing