Housing Trust Conceptual Framewo

Housing Trust Conceptual Framework.

We are all familiar with the economic and social realities of 21st Century American society. For years, housing costs have increased at a much faster rate than wages, making homeownership impossible for more and more households. Dwindling buildable land forces the price of remaining lots ever higher. After federal affordable housing cutbacks, private sector funding dollars are dwarfed by the need for affordable housing. Our neighborhoods are caught in the squeeze.

From this complex, troubling picture arise a new set of questions. What are the legitimate interests of ownership? How do we balance the individual's interest with the collective interests of the neighborhood and community? Should we create a stock of permanently affordable housing? Or should we pour scant funds into a home that will lose its affordability in the first resale? Shouldn’t we preserve all our resources for permanently affordable homes?

Against this background, the housing trust, nationally known as the Community Land Trust (CLT), emerged (The Lawrence Community Housing Trust fits this category). CLTs preserve housing affordability by redefining property ownership.

CLT homebuyers get a home they otherwise couldn't have bought, and when they resell, they get money they couldn't earn renting. At the same time, the home is resold to another household at below-market value; the initial gift keeps on giving. How does this work, exactly?

CLTs typically acquire and hold land and sell residential or commercial buildings on the land. The CLT keeps the title to the land, governed by a community-based Board of Directors. Homeowners receive exclusive, possessory use of the land by a long-term (typically 99-year) ground lease that can be inherited. This agreement reduces or eliminates land costs, which makes the house more affordable. Additionally, CLTs restrict the resale price of the housing in order to keep it affordable long-term. This balances the the initial homeowner's rights to a fair return on an investment with the next buyer's need for affordability.

All this within a community-based, nonprofit 501(c)3 organization governed by a diverse Board of Directors that represents the community. CLTs develop affordable ownership and rental housing, commercial space, and parks while promoting homeownership, housing stability, historic preservation, neighborhood revitalization and local control.

CLTs operate in 31 states and in the District of Columbia. In 20 years, their numbers have swelled from fewer than 30 to more than 130, as well as nearly 40 developing CLTs. The socially progressive model has received a remarkable spike in interest from municipal governments, funding organizations and housing developers that recognize the wisdom of locking limited public and private resources into long-term affordable housing.

This increasing fascination with CLTs and their practical, successful applications—spans a broad array of community settings, including core city neighborhoods, suburbs, small communities and rural areas. CLTs have proven to be creative, effective tools in neighborhood and community revitalization efforts.

Housing Trust Conceptual Framework.

Tenants to Homeowners, Inc.

The Lawrence Community Housing Trust

Tenants to Homeowners, Inc. is a nonprofit Community Housing Development Organization (CHDO) that serves the City of Lawrence, KS.