Community Land Trusts and State Legislation: A Model Act to Enable This Affordable Housing Tool

Affordable housing in the United States has reached a crisis point. Millions of Americans are paying more than thirty percent of their income for housing and related expenses with about twelve million paying more than fifty percent. 1 The lack of affordable housing has hit many markets, both urban 2 and rural 3 , with governments at all levels lacking adequate resources to provide affordable housing for all of those in need. 4 Since at least 1978, community land trusts (CLTs) have been one of the tools used by affordable housing advocates to provide housing to those in need. 5 CLTs create housing that remains affordable long term through use of a ground lease or deed of conveyance that restricts to whom homeowners can sell their home and limits the resale price. 6 In addition to monetary reductions in the cost of the home, CLTs play a fundamental role in stewarding the land and homeowners to enable the homeowners to succeed even in the worst crisis, including the Great Recession. A second, frequently overlooked aspect of CLTs is their ability to provide affordable rental housing.8 These rental units are needed for families that cannot qualify for a mortgage or otherwise afford even a deeply subsidized CLT home. 9 Rental affordability problems are exacerbated in larger cities where land is at a premium and small-scale development of owner-occupied housing may not be economically feasible for those at the lowest income levels. 10 Forty-six states, the District of Columbia, and Puerto Rico all have CLTs, 11 while only fifteen states have CLT statutes. 12 However, having a positive law in those fifteen states has likely contributed to those states accounting for ninety-six of the 270 CLTs listed nationwide. 13 While the positive enactments undoubtedly assisted in the functioning of CLTs, a positive enactment also may set the stage for community groups, lawmakers, regulators, and the legal community to learn about CLTs while also providing standards to those same groups. This Article’s conclusion is a proposed model CLT act. Prior to proceeding to the model CLT legislation, it is important to understand why a model CLT act is necessary and desirable from both the CLT’s perspective and the states’ perspective.