Community Land Trust

A Community Land Trust (CLT) is a non-profit organisation that acquires and holds land to ensure affordable housing and long-term community benefits. Landowners, housing associations, local authorities and developers can decide to form a CLT. While the CLT owns the land, individuals or organisations can lease or own buildings on it, ensuring affordability through resale restrictions and stewardship. CLTs empower communities by involving residents, community members, and public representatives in decision-making, ensuring housing solutions are tailored to local needs while fostering a sense of ownership and long-term commitment to neighbourhood well-being.

Step 1: Site selection

The CLT identifies land that meets community needs based on factors such as accessibility, size, and location. When selecting sites, it is important to identify available land and understand the legal and financial pathways for acquisition. Several options are possible and will depend on the local context. For example, municipal land may become available. Alternatively, CLTs may be integrated into existing sites, maximising the use of available space.

Step 2: Land acquisition

The CLT acquires land and retains ownership to ensure long-term community benefits. The ownership of the land is then separated from the ownership of the buildings constructed on it.

Step 3: Leasing the properties

The CLT grants a real property right through an emphyteutic lease[1], allowing individual homebuyers or legal entities—such as housing cooperatives or foundations—to use the land while acquiring and financing ownership of the buildings. Alternatively, the CLT can retain ownership of the buildings and lease them to individuals.

Step 4: Continued governance

The CLT provides ongoing support for homeowners and tenants, ensuring property maintenance and financial stability. A board, including residents and community members, governs the CLT to uphold community interests.

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A CLT requires large upfront costs to acquire land and construct buildings or purchase existing properties. Additional costs include project preparation and management, as well as establishing sales and rental contracts. To cover these initial expenses, CLTs often rely on public subsidies or grants for land acquisition, which may come at the regional (city), national or European level. However, once established, ongoing maintenance costs are covered by the homeowners rather than public authorities. Optional expenses, such as training, community-building activities, and the provision of services, can be tailored to local needs and priorities.

Permanent affordability: CLTs ensure long-term affordability by restricting resale prices, ensuring that homes remain accessible to lower- income buyers even as property values rise. When individuals purchase a CLT housing unit they agree to this resale restriction, guaranteeing that access to the property remains affordable for successive buyers, resale after resale. The reseller can recuperate what they invested, with a small additional amount. 

Stability for homeowners & tenants: Residents of CLT housing enjoy greater housing security, as they are shielded from sudden rent increases, reducing financial instability and foreclosure risks.

Community-led governance: CLTs operate under a democratic governance model, where residents, community members, and public representatives collaborate in decision-making. This structure ensures that decisions are made in the best interest of CLT residents and community members.

Securing pre-development financing: Banks may be reluctant to lend money to CLTs before a project obtains planning permission, making it difficult to finance essential pre-development work. This includes feasibility studies, site assessments, legal fees, and other pre-construction expenses. To overcome this challenge, CLTs can seek alternative funding sources such as grants, subsidies, or partnerships with public authorities to cover costs.

Regulatory barriers: Property regulations can restrict the scope of CLT activities by imposing minimum lot sizes, density limits, or building codes that may not align with the CLT’s affordability and sustainability goals. In addition, zoning restrictions may limit where CLTs can develop housing.

Concerns of prospective buyers: Potential buyers may be reluctant to purchase a property in a CLT because they will not own the land on which it is built. They may also be concerned about the cap on resale profit. However, both of these aspects are intrinsically linked to the objective of CLTs to offer affordable housing.

Build strong partnerships: Actively collaborate with partners, including local authorities and NGOs, to help deliver the housing units. Explore possible partnership with building developers to integrate CLTs into already existing development projects.

Ensure recognition as public operator: Advocate for official recognition from public authorities to establish the CLT as a formal housing provider. This enhances credibility, unlocks funding opportunities, and strengthens the CLT’s ability to influence housing policies and engage key stakeholders like government agencies and financial institutions.

Involve residents at the inception: Involve future occupants early in the planning, design, and governance of their housing. Facilitate workshops, surveys, and meetings to ensure their voices shape the project, fostering a sense of ownership, shared responsibility, and long-term community cohesion.

Adapt to local urban planning regulations: Research and adapt to city-specific zoning laws and land-use policies to secure land for social housing. Engage with planning authorities and leverage local policies that support community-driven development.