Embedded Files
A CLT may have a clear strategy around the projects that they do and why. Some CLTs work with anti-displacement partners to identify homes and areas in need of CLT support. Other CLTs might have a goal to acquire or develop specific properties of cultural relevance. CLTs might develop relationships with landowners over time to eventually acquire and steward the land, while others might be more responsive to emergencies/market opportunities.
Acquiring/developing land involves working with banks, municipalities, mortgage lenders, lawyers, developers, and third-party stakeholders. A CLT can acquire land in different ways, including public land bidding processes, bargain sales from private land/homeowners, gifts, or market purchases.
What You'll Find on this Page:
What You'll Find on this Page:
Development Types & Strategies
Development Types & Strategies
The larger a role a CLT plays in a project, the more staff time and skills it needs to do so. More involvement from the CLT also means more control and input into the final project. In cases of CLT-as- developer, a CLT can negotiate developer fees, one source of income for the organization. Some examples of development strategies:
Community/CLT-initiated development — In this case, the CLT purchases land with the intention of rehabbing existing homes or developing farms or housing or other community resources. The CLT may be the developer, be a development partner, or play a role as a non-financial partner, losing some decision-making power.
Buyer-initiated acquisition — A pre-approved buyer may purchase a home with the intent of transferring or selling the underlying land to a CLT, either as a simultaneous sale or post-purchase transfer. See City of Lakes CLT's program
Development costs by stage.
Source: Partnerships for Dignity & Rights
Developer-initiated development — Traditional real estate developers may collaborate with CLTs when initiating new projects by transferring or selling to the CLT the land that the new development sits on.
Municipally-initiated or mandated projects — Municipalities may look to (or be required to) partner with CLTs or similar organizations for affordable housing development projects. In this case, the municipality would transfer land to the CLT with the understanding that the CLT will oversee the development and act as the long-term steward of the property.
Resources about developing CLT-owned land:
"Development" — Starting a CLT by John E. Davis
Creating Community Controlled, Deeply Affordable Housing — Partners for Dignity & Rights
Community Land Trusts & Community Development: Partners Against Displacement — Local Initiatives Support Corporation
Case Study: Western Queens Community Land Trust
Financing CLT Projects
Financing CLT Projects
For each project, CLTs (and their development partners) need to pull together equity and debt (cash and loans) from various sources, such as banks, city or state lending or granting agencies, investment pools, private foundations, and grassroots fundraising efforts (see this list of CLT Financing Options, Organizational Development.) A farm, open space or agricultural project will access different sources of funding than a housing project will.
Hear from Lydia Lowe of Chinatown CLT about how activism and partnerships can help fund land acquisition projects.
Mortgages & Loans for Land Acquisition + Housing Acquisition
Short-term predevelopment or acquisition loans cover upfront costs like land purchase, permitting, or architectural plans. These typically need to be paid off/refinanced within 12-24 months. Mission-driven lenders like CDFIs (Community Development Financial Institutions), local affordable housing funds, or public sector partners. These lenders often understand CLT models better than traditional banks.
A CLT acquiring a building that that they intend to sell to a homeowner or keep as their own property that they manage, can take out a 30 year mortgage that gets paid off by the CLT over time (through property operations budget and other sources) or gets taken over by the homebuyer, in the case of homeownership.
When applying for a loan, the applicant typically needs to
Have a clear project plan, timeline, and budget, including other sources of funds identified
For rental housing, prepare a pro forma (a financial projection of development costs, funding sources, and revenue)
Understand what, if any, guarantee or collateral you can offer — often the land itself
Be ready to explain your legal structure and community benefit
For more on mortgages from the CLT homebuyers’ perspective, check out the section called “Supporting members in buying CLT homes — Mortgages.”
Resources about financing CLT purchases
Community Land Trust Mortgages — Freddie Mac
Financing CLT Homes — Ch. 20 of the Grounded Solutions 2011 CLT Technical Manual
CLT Real Estate Transactions — Ch. 22 of the Grounded Solutions 2011 CLT Technical Manual
Shared Equity Homeownership — National Housing Conference
Property and Asset Management
Property and Asset Management
The primary options for property management are in-house, using employees from your own organization, or to outsource it to another organization or company. Property management is complex and expensive. It requires industry expertise (plumbing, electrical), communications and liaising with members/residents, timely provision of services, and the ability to cover these costs without increasing the rent for CLT residents.
Post-purchase management of properties looks different for each community land trust. CLTs regularly monitor their properties for any maintenance needs or damages, as well as any occupancy or use-related noncompliance issues. If any problems are found, dealing with them consistently and in accordance with your CLT's policies and procedures is key.
Asset management entails thinking ahead to anticipate and cover costs of capital needs like a new roof, water heater, or heating system, renovations, and the overall value and state of the CLT's entire portfolio. Asset management tracks and works to uphold building value over time.
CLT members in discussion, BNCLT, 2023
Resources to learn more about property management
Maintaining Homeownership Units — Inclusionary Housing
Working with Property Managers — Inclusionary Housing
Post-Purchase Stewardship — Ch. 23 of the CLT Technical Manual
Explore the Resource Library database
Explore the Resource Library database
Page updated
Google Sites
Report abuse