Operations & Stewardship

This page focuses on long term operations and health of a CLT, including staffing, stewardship and fundraising.

What You'll Find on this Page:

Staffing

As CLTs grow, they determine what staff roles are strategic to support the every day needs and long term goals of the organizations. Roles to be played include:

Community organizing
Homeowner stewardship
Property management and assets management
Real estate acquisition and development
Operations and finance
Farm site, commercial and other specialty areas
Fundraising

CLTs need access to legal services, real estate expertise, insurance providers, lenders and more.

Many community land trusts rely on volunteers to run their organizations before they can hire part-time or full-time staff.

CLT staff and community members in front of DSNI's "Our Tierra Livri" art installation

Resources about staffing your CLT

Launching Operations—Ch. 7 of the CLT Technical Manual
The City-CLT Partnership: Staffing the Startup—the Lincoln Institute of Land Policy

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Supporting Homeowners & Wider Community

Community stewardship

CLTs need to integrate long-term stewardship and sustainability of not only their properties, but also of their homeowners and communities, into their operational planning. Physical upkeep and condition of properties, financial longevity of the organization, education and training for homeowner success, and actively engaged membership/community building are essential to serving the permanent function CLTs aim for. Check out these resources for more:

Post-Purchase Stewardship—Ch. 23 of the Grounded Solutions 2011 CLT Technical Manual
Planning for Sustainability—Ch. 24 of the Grounded Solutions 2011 CLT Technical Manual

Resources for supporting your CLT members

CLT Homeowner Manual—a guide for homeowners from 1Roof Community Housing in Minnesota
CLT Homeowner Resources—1Roof Community Housing in Minnesota
Resident & Community Engagement in CLTs—the Lincoln Institute for Land Policy
Forest Row HOA bylaws- Home Owner Association bylaws example

DSNI board members, 2023

Homebuyer Support — Mortgages

Buying a home requires a mortgage loan, and CLT homebuyers are no exception. To qualify, homebuyers need to meet underwriting requirements, which often include meeting specific credit score thresholds and providing proof of income.

Data shows that CLT homeowners are less likely to default on their mortgages than free market owners. Still, lenders may not want to issue mortgage to CLT homebuyers because the lenders do not understand and accept the ground lease and dual ownership model,

By aiding homeowners in the financing process, CLTs can help community

members move up the home ownership and economic ladder!

Source: City of Bridges CLT

which ensures that the bank cannot claim the land in case of foreclosure. CLTs play a role in educating lenders on the model, and in stewarding long term success of the homeowner by reviewing and approving of refinancing in order to protect owners from exploitative mortgages.

Resources about homebuying and CLT mortgages

Community Land Trust Mortgages — Freddie Mac

Financing CLT Homes—Ch. 20 of the CLT Technical Manual

CLT Real Estate Transactions—Ch. 22 of the CLT Technical Manual

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Fundraising & Budgeting

Fundraising

Budgeting + Accounting

Budgets will include

operating expenses (costs like staff, benefits, taxes, internet, office supplies, outsourced accounting, audits)
revenue/income (from ground lease payments, developer fees, grants, philanthropic and individual donors)

Accounting services will track

spending
invoicing
grant spending

Depending on your funding sources and tax requirements, you may need separate accounts or budgets for different projects. For example, if you receive grant funds from a private foundation for help with a property acquisition, you’ll likely have to report back on exactly how those dollars were used. CLTs oftentimes create multiple LLCs to hold different properties. CLTs must track the finances of the organization as well as the finances of any properties/projects they are responsible for, like CLT-owned rental units.

Resources for managing your CLT's budget