What is a Community Land Trust?

A Community Land Trust (CLT) is a nonprofit, community-based organization that holds land in trust and makes that land available for community purposes and public benefit (such as community gardens, commercial space, affordable housing). For most CLTs, affordable housing is the highest priority.

A land lease agreement defines the arrangement between the family that purchases and owns the home and the Community Land Trust that holds the land beneath the home in trust.

CLT land-leases for homes:

• Are typically 99 years in length
• Are renewable
• Are inheritable
• Allow a family full access to the land
• Require owner-occupancy
• Include a nominal land lease fee
• Include a Resale Formula that determines resale price, ensuring affordability for the next homebuyer
• Determine income level of initial and future buyers

The Resale Formula in the lease tries to balance two things:

• The need of the individual household to get ahead and build wealth through homeownership.
• The need for homes to remain affordable upon resale.

In return for having a homeownership opportunity that otherwise wouldn't exist, home buyers agree to limit the price at which they will resell their house to another moderate-income home buyer.

The Mason Thurston Community Land Trust (MTCLT) model is unique in that the community subsidy that makes the home affordable (which MTCLT administers and which provides security and creates partnership between the Mason County resident and the MTCLT) remains with the home upon resale.