The Benefits of CLTs in Lower Cost Housing Markets

It’s clear to many how beneficial community land trusts can be in high-cost markets or areas with rapidly escalating home prices. However, many people don’t see the need for CLTs in lower cost markets, particularly those that are blighted and in disrepair. An article in Shelterforce provides an example of how this long-term affordable homeownership tool can be highly effective in stabilizing and revitalizing high-poverty neighborhoods wracked by foreclosures and vacant homes. Although the article highlights the work of Northern Communities Land Trust in the neighborhoods of Duluth, Minnesota, several of these benefits could easily apply in similar neighborhoods across the country. These benefits include:

• The requirement of owner-occupation, which can help prevent problems of property neglect occurring with absentee landlord in many of these blighted neighborhoods.

• The close relationship CLTs maintain with their homeowners, in terms of providing financial and homeowner education, maintenance support, and especially stepping in helping to cure defaults if they occur.

• Keeping the funds supporting these affordable within the community, so that they can serve generations of low- and moderate-income homeowners.

• Especially when supported with Neighborhood Stabilization Program funds, CLTs can supply the deeper subsidies needed for the major rehabilitation often necessary in blighted neighborhoods with vacant properties.

How has your community used CLTs and other shared equity homeownership programs in lower cost, blighted areas? What other considerations, benefits and challenges are involved in using CLTs and similar programs
in this context?