An Overview in Connecticut: Community Land Trusts

What is a Community Land Trust?

Many are familiar with Conservation Land Trusts, which are typically referred to simply as a Land Trust. A land trust is focused on preservation of land and open space. Most regions in Connecticut have multiple land trusts.

In contrast, a Community Land Trust (CLT) is focused on providing affordable housing for multiple generations with each unit of housing that is produced. This is accomplished by separating the land from the improvements (i.e. buildings), with the CLT retaining ownership of the land through a long-term ground lease and selling only the buildings, or land improvements. By removing the cost of land in a transaction, the housing occupying that land now becomes affordable.

Maintaining affordability of the housing unit through resale is accomplished through the ground lease or deed stipulating the required ongoing affordability of said unit through resale formulas. The formulas allow the current homeowner to acquire wealth through earned equity (e.g. paying down the mortgage) and market appreciation of the home, while at the same time keeping the sale price affordable for the next buyer.

The needs of a community inform and guide the services that are provided by the CLT. While affordable housing is a central focus, a Community Land Trust may also acquire land for affordable farming, community gardens, green space, and community facilities. Roots within the community are important to CLTs, providing support, input, and resources. Martinez, Mirna. Interview Conducted by Lynn Haig, 25 March 2024.

How They Work

The traditional CLT is a community-based membership-based organization that serves a defined geographic area, which may range from a neighborhood to an entire city or region. The board of directors is divided into three equal groups of representatives (tripartite): leaseholders, people living on or using CLT land; community members; technical experts, funders or other stakeholders. National League of Cities, "Community Land Trusts: A Guide for Local Governments" (NLC and Grounded Solutions 2021), 16.

Community Land Trusts own land in perpetuity. Because of this they also focus on stewardship to ensure the land will provide lasting affordability. Stewardship of the structures and homes on the land is achieved through requirements of proper insurance and CLT approval of all substantial renovations and additions. Education of homeowners about preventative maintenance and assistance throughout renovation may also be provided. Stewardship of homeowners occurs through homebuyer and post-purchase counseling, as well as foreclosure counseling when needed. National League of Cities, "Community Land Trusts: A Guide for Local Governments" (NLC and Grounded Solutions 2021), 15.

Land is purchased by the Community Land Trust and developed with affordable housing, both homeownership and rental units.  The units, not the land, are sold to an income-qualified family, who then enters into a long-term (usually 99-year) renewable lease of the land. The ground lease contains conditions for the eventual sale of the home, typically requiring sale to another low-income household for an affordable price that is determined by a stated formula. This arrangement allows the seller to build wealth through the increased home value, but also keeps the sales price low for the next low-income buyer. National League of Cities, "Community Land Trusts: A Guide for Local Governments" (NLC and Grounded Solutions 2021), 9. This model creates affordability for the long-term, while also building wealth.

CLTs Compared to Down Payment Assistance

Traditional homebuyer support is provided through down payment assistance. This helps one family at a single point in time. When that family sells their home it will be at market value, and if the new homebuyer also needs down payment assistance it will likely be for more than the original homebuyer because of market appreciation. This type of assistance is provided to qualified families on a case-by-case basis. The family is able to build equity in the home and capture all of that upon resale, but the affordability of that home disappears when they sell. Down payment assistance is not a long-term solution to providing lasting affordability.

In contrast, a CLT home is affordable in perpetuity, and only requires the subsidy with the first homebuyer.

The following examples come from the National League of Cities’ Community Land Trusts: A Guide for Local Governments National League of Cities, "Community Land Trusts: A Guide for Local Governments" (NLC and Grounded Solutions 2021), 11-14. and demonstrate the difference in lasting affordability between a CLT home and a home purchased with downpayment assistance. 

Here, two homes of the same value are being purchased by low-income families. One family is utilizing down payment assistance (DPA Town), while the other is purchasing on a Community Land Trust (CLT Town).