Over 40% of Columbia County renters are cost-burdened, spending over 30% of their income on housing (2015-2019 CHAS).
The median housing sale price surged by 99% in the past five years, increasing from $234,000 in Q3 2018 to $465,000 in Q3 2023 (New York State Association of Realtors)
There is a $287,000 gap between the median sales price for a house and the mortgage the median worker in Columbia County can afford (Pattern for Progress, Out of Reach Report 2023).
There is an extremely limited supply of non-luxury housing to rent or buy.
Offers homeownership opportunities to historically excluded households
Ensures housing remains permanently affordable for future households
Provides resources and support for homeowners, reducing chances of mortgage default
Contributes to neighborhood stability by supporting lower-income community members
Recycles public subsidies and private donations to help more households
A Community Land Trust (CLT) is a non-profit organization that acquires and stewards land on behalf of local residents, often with the goal of providing obtainable homeownership and affordable housing.
There are three key features that make CLTs different from other organizations.
1. Long-term Ground Leases
2. Resale Recapture
3. Tripartite Board Membership
Long-term Ground Leases
When a home exists or is built on CLT-owned land, that homeowner enters into a ‘ground lease’ with the CLT. A standard length of term for these leases is 99 years. This long-term contract protects the homeowner’s security, privacy and equity, and allows the CLT to preserve the home’s long-term affordability.
Resale Recapture
CLTs retain the option to repurchase the improvements made upon their land in the event that the owners would like to sell. The resale price of these buildings is determined by a formula that provides equity to the seller while also preserving affordability for an income-qualifying buyer.
Tripartite Board Membership
The ‘classic’ model of CLT governance involves equal representation from members of three groups: leaseholder representatives, general representatives, and public representatives. Leaseholder representatives are individuals who lease land from the CLT; general representatives are members of the broader community in which the CLT operates; Public representatives include public officials, local leaders and housing and community professionals.
There are three key features that make CLTs different from other organizations.
When a home exists or is built on CLT-owned land, that homeowner enters into a 'ground lease' with the CLT. A standard length of term for these leases is 99 years. This long-term contract protects the homeowner's security, privacy, and equity, and allows the CLT to preserve the home's long-term affordability.
CLTs retain the option to repurchase the improvements made upon their land in the event that the owners would like to sell. The resale price of these buildings is determined by a formula that provides equity to the seller while also preserving affordability for an income-qualifying buyer.
The classic model of CLT governance involves equal representation from members of three groups: leaseholder representatives, general representatives, and public representatives. Leaseholder representatives are individuals who lease land from the CLT; general representatives are members of the broader community in which the CLT operates, public representatives include public officials, local leaders, and housing and community professionals.
As 501(c)3 non-profit organizations, CLTs are able to leverage private investments with public funds and charitable contributions, narrowing the gap between home construction and purchase costs. Each purchaser of a CLT home enters into a resale agreement that determines the amount for which the home can be sold, and the amount of equity the homeowner can receive.
The remaining equity is re-invested into the property in the form of a subsidy to the new buyer.
Parcels acquired by a CLT are owned by the non-profit organization. The CLT stewards the land on behalf of the community, whose members are empowered to collectively decide how the lands are best used. The tri-partite Board of Directors includes residents of the CLT to ensure their inclusion in decision-making.
Direct beneficiaries of CLTs are the homeowners and tenants who live on the CLT’s lands. CLTs, however, also provide broader benefits to their communities. Because the subsidies invested into each CLT home are re-invested again and again as the home sells, the initial public investment remains in the community in perpetuity. Involving local residents in land use and development decisions allows residents to plan for what they feel is best for their communities, rather than waiting for developments to happen to them. Since CLTs retain an interest in the buildings on their lands, they ensure that those properties will be well-maintained. Finally, local employers and businesses benefit when their employees and patrons can find housing that is both nearby and affordable.
