Community land trusts remove land from the speculative market by acquiring and placing legal restrictions on it, like any other form of property ownership. They can be used to preserve and improve access to affordable homes; establish and expand commons for recreation, transportation, conservation, and other purposes; and open space for new economic activity. FCCLT is designed to help the community achieve any and all of those goals, and more.
This project was initiated by a group of neighbors in Cleveland Heights, so we are focusing on this area first. However, our vision is to create an accessible network of homes and community spaces. Our vision is to expand to neighboring communities as our programming grows.
Is a Community Land Trust a new idea?
This is not a new idea. This concept has been well-established as a model for perpetually affordable housing across the country. There are over 300 CLTs throughout the United States, and even more across the world.
When someone buys a CLT home, they have to sell it for a cheaper price. Are they losing the opportunity to build wealth for themselves and their families?
Most CLT homebuyers are first-time homeowners. When they were renting a home, they weren't building any equity at all.
Once they own a CLT home, they do actually build equity, although it is not as much as it would be on the free market.
Once they have built equity, they could sell the CLT home and choose to purchase a non-CLT home at anytime.
What is meant by "affordable home?" How is the purchase price calculated?
We are using a calculation assuming a family with an income at 80% of AMI (area median income) should be able to purchase a home using no more than 30% of their monthly income for housing expenses. This is spelled out in our Stewardship Policies.
How much equity does a CLT homeowner acquire?
There are several ways CLTs across the country determine a sales price. Some are based on a percentage of the free market assessment of the house at the time of sale. Others are based on the Consumer Price Index. We have chosen what is called a "Fixed Rate" calculation. The house increases in value by 1.5% each year. This guarantees the homeowner builds equity at a predictable rate, while ensuring that the home reamins affordable for a future homebuyer.