A CLT is a non-profit organization dedicated to providing permanently affordable housing options. They achieve this by separating the ownership of the land from the house itself. The CLT retains ownership of the land, while qualified individuals and families can purchase the homes built on it. That separation keeps the overall cost of ownership significantly lower compared to the traditional market.

CLTs can also own and manage apartment buildings, ensuring the rents stay affordable over time. Because CLTs are non-profits, they’re not driven by maximizing profit. Instead, they focus on keeping housing costs stable and affordable for low and moderate-income families, regardless of market fluctuations.

When purchasing a CLT home, the buyer becomes the homeowner of the structure. They enter into a long-term ground lease agreement with the CLT for the land beneath the home. This lease ensures affordability for current and future residents. There are also restrictions on resale prices, preventing speculation and guaranteeing the home remains accessible and affordable for future eligible buyers.

CLTs offer a multitude of benefits for communities. By fostering affordable homeownership, they create more stable and diverse neighborhoods. Families can stay put, allowing children to grow up in familiar surroundings and fostering a sense of belonging. This stability strengthens the community by encouraging residents to invest in and care for their local environment.

For individuals and families, purchasing a CLT home offers a clear path to affordable homeownership. Monthly payments are more manageable, allowing investment in the future and building equity over time. The value of the home can increase due to market trends and improvements made by the owner. While the resale price is restricted to ensure affordability for the next buyer, the increased value from improvements goes directly to the seller.

When a CLT owns rental apartments, it manages both the building and the land it sits on. This structure allows the CLT to maintain greater control over affordability. As a non-profit organization dedicated to housing accessibility, the CLT’s primary goal is not to maximize profit but to ensure that rents remain permanently affordable for low and moderate-income families. 

The CLT achieves this by leveraging financial support from government agencies and philanthropic organizations. Unlike private landlords who might increase rents in response to market fluctuations, the CLT takes a long-term perspective, prioritizing stability and affordability for its residents.

In today’s economic climate, where increasing housing costs are a growing concern, CLTs offer a vital solution. They represent a commitment to creating strong, stable communities by providing access to affordable housing. It’s a model that empowers residents, promotes community development, and offers a brighter future for all.