We are sharing an article from NeighborWorks that explains a concept that many people struggle to understand in the world off affordable housing: Community Land Trusts.
What’s a community land trust? It is a a model of shared equity housing that keeps homes affordable because a nonprofit, like Housing Development Fund, owns the land, while the homeowner owns the home that sits on that land. The goal is to keep the home affordable for generations. The shared equity model also allows residents to not only benefit from a predictable monthly mortgage but to recoup the value of their improvements – and their down payment. The organization and the family share in the appreciation of the home.
According to Jenee Gaynor, director of Shared Equity Housing at NeighborWorks America, many communities are facing increased housing and construction costs. “This is one way to serve more families with limited funds and subsidies. It’s a way to make sure any investment you’re making will really count and stay in the community for the long term.”Especially as more nonprofits are struggling to do more with less.
“Supporting network organizations in adopting and scaling shared equity models that can serve many households over time is one way NeighborWorks is helping the network do more,” Gaynor said.