The community land trust (CLT) is an equitable and sustainable model of affordable housing and community development that has slowly spread throughout the United States during the past 30 years. The CLT model was originated in the United States by Robert Swann. The first community land trust was formed in 1967 in Albany, Georgia by Robert Swann and Slater King, seeking a way to achieve secure access to land for African American farmers.

In the UK, the ‘CLT Movement’ is rapidly growing in size, ambition and experience.  However, to date there are very few examples of urban community land trusts whereby the model is used to house a large number of people within the inner-cities.  We strongly believe that – following on from the successful examples set in places like Burlington, Vermont and San Francisco, California – community land trusts could help significantly help alleviate the problems of overcrowding and overpricing in London’s poorest boroughs.

LOW COST HOME OWNERSHIP
Community land trusts (CLTs) typically acquire and hold land through a board of local community residents, then sell residential  commercial buildings on that the land. The land is held in perpetuity – that is, forever – by the CLT, and is governed by the community-based Board of Directors whose constitution forbids them from selling it. Exclusive, possessory use of the land is then conveyed to individual homeowners by means of a long-term (e.g. 99-year) ground lease that is assignable to the heirs of the leaseholder and renewable at the end of the 99-year term. Residents buy the homes that they can then live in.  But what they do not ‘own’ is the land the house is on.  Through this mechanism, the cost of land in the purchase price of their new home is minimized or even complicated eliminated, making the housing more affordable –but all the  while assuring long-term stability and security for the CLT homeowner and providing them with an exchangeable asset in the house itself.

AFFORDABLE HOMES FOR EVERY GENERATION
Additionally, CLTs place equity limitations into the ground lease agreement that restrict the resale price of the housing in order to maintain its long-term affordability.  In an attempt to balance the seemingly competing goals of providing a fair return on the initial owner’s housing investment, on the one hand, with assuring that the housing unit is kept affordable for the next buyer, on the other. People who buy homes through a CLT are, in substance, selling their right for unlimited market-driven appreciation in exchange for significant upfront subsidy that allows them to own a home they otherwise would have been unable to afford. Careful crafting of CLT ground lease resale formulas assures that CLT homeowners are able to realize a fair (albeit limited) equity return on their housing investment, while preserving the affordability of the home for subsequent limited-income homebuyer households – without requiring the infusion of additional subsidy at the time the property changes hands. In so doing, the benefit of the investment of public and private money needed to create affordability is preserved for generations to come and the house can be sold at an equally low price to new owners. 

TANGIBLE ASSETS FOR WORKING FAMILIES
CLT homeowners are able to experience all the true benefits and obligations of homeownership that those bought on the open market provide.  CLT homeownership eliminates the notion of ‘lost money’ that those renting or in social housing experience; the CLT homeowner is responsible for payment of all property taxes on their home and the land on which it sits; CLT homeowners are able to deduct the mortgage interest paid when they file their tax returns; and all CLT homeowners enjoy the same tangible benefits that homeownership provides to anyone fortunate enough to own their own home – security, stability, the opportunity to live in a community of their choice, proximaty to work and school and family and friends, and the ownership of a financial asset that later may be sold or bequeathed to their children. 
 
LOCAL COMMUNITIES COMING TOGETHER
And all of this is situated within a community-based, nonprofit organization governed by a board of directors that is broadly diverse and representative of the interests of the community that is served.  CLT boards of directors are typically structured in three-part fashion, to balance community interests in the governance of the organization: 1/3 of the board seats are reserved for hose who lease land from the CLT (residents); 1/3 of the seats are reserved for community representatives (i.e. local social institutional heads, such as Headteachers and leaders of faith institutions ) and 1/3 for public representatives. As community-based organizations, CLTs take a long-term, comprehensive approach to their responsibility to their homeowners and the communities they serve. CLTs typically provide substantial post-purchase support to their residents, providing essential “backstopping” support and maintaining on-going relationships with homeowners, in an effort to promote and assist their self-sufficiency and success. As an example, our CLT would reserve the right and would be prepared to:

1. cure a default on the mortgage of any lease holder/homeowner
2. assist in the creation of sensible mortgage agreements for families on low incomes, through the creation of a credit union or an agreement with sustainable, ethical building societies
3. consider the personal circumstances of each family very closely when discussing financial arrangements or any unforeseen circumstances that may arise
4. create family and community oriented facilitates, such as play centres, at a low cost within the land trusts boundaries
5.  foster a co-operative, resident driven, community engagement process within the land trust regarding its governance and future investments.

TIME TO MAKE IT HAPPEN IN LONDON
CLTs are currently helping to alleviating the blight of overpriced, overcrowded housing across 33 states across the US. In the past 20 years, their numbers have grown from fewer than 30 to some 180 today.  London Citizens proposals for St. Clement’s Hospital, Mile End, and the Olympic Legacy Park are the most advanced and well-planned urban proposals in the UK today.  Please get in touch to find out how you can support your local community build a sustainable housing programme for our children and join our campaign.