Community Land Trust Primer

What is a Community Land Trust?

A Community Land Trust (CLT) is a nonprofit corporation that owns land and leases it to residents, ensuring permanent affordability. Key features:

• Land stays in trust: Never resold at market price
• Leaseholds: Residents own buildings (99-year leases), not land
• Resale formula: Limits profit on home resale (e.g., 25% of appreciation)
• Community governance: 1/3 residents, 1/3 community, 1/3 public reps

Why CLTs?

• Anti-speculation: Removes land from market, preventing bubbles (+350% since 1979 in Canada)
• Generational wealth: Builds modest equity while keeping housing affordable
• Community control: Locals decide land use, not distant investors

Reset Phase 2: CLTs are the housing infrastructure. Scaling to 50,000 units by year 10 redirects $15-20 billion from landlords/speculators to permanent community assets.

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How CLTs Work

Traditional Homeownership

1. Buy land + house at market price ($800K in Vancouver)
2. Hope for appreciation (speculative asset)
3. Sell at profit or lose to foreclosure

CLT Homeownership

1. CLT buys land ($300K) via grants/bonds
2. Resident buys house only ($200K vs. $800K market)
3. Monthly lease fee to CLT ($50-$150) covers land taxes
4. Resident builds limited equity (25% of appreciation)
5. On resale, CLT buys back at formula price; next buyer gets affordability

Example Resale Formula (Burlington VT Model):

• Purchase price: $200,000 (house only)
• Market appreciation: 10 years → $300,000
• Resale price: $200K + 25% of ($300K - $200K) = $225,000
• Homeowner equity: $25K gain + mortgage principal paid
• Next buyer: Gets house for $225K (still 50% below market)

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Governance Structure

Tripartite Board (1/3 Model)

• 1/3 Leaseholders: Current residents (elected by residents)
• 1/3 Community: Local nonprofits, churches, unions (appointed)
• 1/3 Public: Municipal reps, housing advocates (appointed)

Why this split?

• Residents: Ensure homeowner interests (maintenance, fees)
• Community: Preserve affordability mission (prevent speculation creep)
• Public: Align with local housing policy (zoning, tax credits)

Decision-Making

• Major votes: 66% (bylaws, land acquisition, resale formula changes)
• Routine votes: Majority (budgets, staff hires)
• Resident veto: On lease terms (protects homeowners)

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Financing CLT Land Acquisition

Cost per unit: $50K-$150K land + $150K-$300K building = $200K-$450K total (vs. $800K-$1.5M market).

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Resale Formula Options

Best practice: Appraisal-based 25% (used by 70% of US/Canadian CLTs).

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18-Month CLT Launch Plan

Months 1-6: Research & Coalition

1. Assess Need:

   • Housing affordability crisis? (Median home >5x median income?)
   • Local support? (Municipal council, nonprofits, residents)

2. Study Existing CLTs:

   • Canada: Québec City CLT, Vancouver CLT
   • US: Burlington VT, Portland OR, Atlanta (adapt for Canadian law)

3. Form Steering Committee:

   • 10-15 people: Residents, housing advocates, union reps, lawyers
   • Meet monthly; assign roles (legal, fundraising, communications)

4. Legal Structure:

   • Incorporate as nonprofit (federal or provincial)
   • Draft bylaws (use Grounded Solutions Network template)

Months 7-12: Fundraising & Land Acquisition

5. Campaign for Municipal Support:

   • Pitch city council: "CLTs solve housing crisis without displacing current residents."
   • Ask for:
     • Land donation: Surplus city-owned lots
     • Grants: $500K-$5M from affordable housing fund
     • Tax exemptions: Waive property tax for CLT land

6. Community Bonds:

   • Crowdfund $100K-$500K from local residents (3-5% interest, 10-year term)
   • Use platforms like REBL Bonds (Canada-specific)

7. Identify Target Properties:

   • Criteria: Underutilized lots, foreclosures, speculative holdings (e.g., Fidani/Pattison vacant land)
   • Size: Start small (10-20 units); scale to 100+ over 5 years

8. Negotiate Purchase:

   • Below-market deals (e.g., $200K/acre vs. $500K market)
   • Seller incentives: Tax deduction for donation; community legacy

Months 13-18: Development & Leasing

9. Build/Renovate Housing:

   • Partners: Local unions (unionized labor), modular builders
   • Timeline: 6-12 months construction
   • Cost: $150K-$300K/unit (subsidized via CMHC, provincial funds)

10. Market to Eligible Residents:

    • Income cap: 60-120% AMI (area median income)
    • Priority: Current renters, displaced residents, essential workers
    • Application: Lottery if oversubscribed

11. Close Sales:

    • Residents buy house ($200K) with mortgage (via credit union)
    • Sign 99-year ground lease with CLT ($50-$150/month)

12. Ongoing Stewardship:

    • CLT monitors compliance (no subletting, resale formula adherence)
    • Provide homeowner education (maintenance, budgeting)

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Case Studies

Burlington Community Land Trust (Vermont)

• Founded: 1984 | Units: 565 | Residents: 1,200+
• Model: Appraisal-based 25% resale formula
• Success: Zero foreclosures during 2008 crisis; 90% homeowner satisfaction
• Lesson: Municipal support (land donation, zoning waivers) is critical

Champlain Housing Trust (Vermont)

• Founded: 2006 (merger) | Units: 2,200+ | Budget: $30M/year
• Model: Diversified (CLT homes, rental apartments, elder housing)
• Success: Scaled via bonding ($50M municipal bonds); no tax dollars lost
• Lesson: CLTs can grow large while staying mission-driven

Québec City CLT (Canada)

• Founded: 2010 | Units: 40 | Model: French-Canadian adaptation
• Challenges: Less municipal support than US; slow scale
• Lesson: Need federal/provincial policy (like BC Housing's CLT fund)

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Policy Advocacy for CLTs

Municipal Level

• Ask: Donate surplus land; waive development fees; upzone CLT sites
• Target: Progressive councils (Vancouver, Toronto, Montréal)

Provincial Level

• Ask: 10% of affordable housing budgets to CLTs ($500M/year in BC)
• Precedent: BC Housing's $19B fund (lobby for CLT carve-out)

Federal Level

• Ask: CMHC co-investment in CLTs (low-interest loans)
• Precedent: US HUD funds CLTs; Canada should match

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Common Challenges (And Solutions)

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FAQs

Q: Can CLT homeowners refinance?
A: Yes, but CLT must approve (ensures equity preservation). Most credit unions understand CLTs.

Q: What happens if a resident defaults?
A: CLT buys back home at formula price; resells to next buyer. Resident keeps equity (if any).

Q: Do CLTs work for rentals?
A: Yes—CLT owns land + building; rents at below-market (e.g., $800/month vs. $1,500). Called "limited-equity rental co-op."

Q: Can I leave my CLT home to my kids?
A: Yes—CLT approves transfer (they must meet income cap). Or estate sells back to CLT at formula price.

Q: How do CLTs prevent gentrification?
A: By locking in affordability permanently. Neighboring market homes may gentrify, but CLT units stay affordable.

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Next Steps

1. Join a CLT Network: Grounded Solutions Network | Community Land Trust Network (UK—adapted for Canada)
2. Attend Training: Lincoln Institute CLT Academy
3. Start Local Campaign: Use this guide; recruit 10 people; pitch city council
4. Get Legal Help: Community Legal Clinics (subsidized)
5. Report Your CLT: Track via 99reset.org/join

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Resources

• Grounded Solutions Network: groundedsolutions.org
• Burlington CLT Model: champlainhousingtrust.org
• Québec CLT: clttq.ca
• Canadian Resale Formula Guide: CMHC CLT Toolkit

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Last Updated: November 2025
Difficulty: Hard (18-24 months)
Impact: Very High (permanent housing decommodification)

Questions? Email info@99reset.org or find mentors in your local chapter.