The nonprofit model is becoming more popular as communities seek ways to reduce housing costs.

With housing costs spiraling out of control for many U.S. households, community land trusts and shared equity homeownership programs are growing in popularity, with over 300 land trusts nationwide.
In a piece for Route Fifty, Molly Bolan explains the model. “Land trusts are nonprofits that through a shared equity program purchase properties and then sell or rent the single-family homes, multifamily buildings or commercial spaces built on them. The trust retains ownership of the land the house sits on.” Unlike more predatory models (see investor-owned mobile home parks), land trusts enter a long-term (often 99-year) lease, which can be transferred to new owners should the first homeowners decide to sell.
“Nationwide, nearly 88% of people who own their homes through a shared equity program are first-time buyers, according to Grounded Solutions Network. The model offers social benefits too, like mitigating gentrification and reducing racial gaps in homeownership.” In Texas, the Florida Keys, and Lahaina, community land trusts are being used as a way to preserve affordable housing for residents in the wake of natural disasters.
Because scaling the land trust model can be costly, James Yelen, director of technical assistance for Grounded Solutions Network, warns that the suggests that cities should dedicate funding to supporting the model, pointing to examples in Oakland and Chicago. “Beyond dedicated funding, state and local governments can update laws to ensure community land trusts are eligible for affordable housing funding from programs like the federal Community Development Block Grant.” States, counties, and cities could also exempt community land trusts from property taxes to reduce their costs.
FULL STORY: Hungry for affordable housing, communities turn to land trusts

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