Land Trust Model: The Basics
Community Land Trust Model
A community land trust model is a non-profit mechanism where a trust acquires a property, maintains land ownership, but offers the home itself for purchase.
Value Separation
By separating the home’s value from the land’s value, the Trust substantially decreases the overall cost of becoming a homeowner for potential buyers. We strategically price the home to match the buyer’s budget, with the residual property value allocated to the land.
Enhancing Affordability
Buying a home is likely the most complicated financial decision people will make in their lives. Housing affordability remains a common challenge in American households at every income level. Any household— regardless of whether its income is $50,000 or $250,000, can fall into the category of being “cost-burdened.”
Buy. Sell. Retain. Pay it Forward.
Affordable Homeownership in Practice
1.
Buy
The Trust buys property within using public investment.
2.
Sell
The Trust sells the improvements (the house itself) at a price adjusted to a homebuyer’s specific affordability level
3.
Retain
The Trust retains ownership of the land and issues a 99-year ground lease to the purchaser.
4.
Pay it Forward
Should the homeowner choose to sell the home, the Trust has the first right of refusal.
What We Do
Affordable Homeownership in Practice
We work to make permanent affordable homeownership opportunities for current and aspiring residents of College Park.
Our Mission
is to provide a source of permanently affordable homeownership solution to current and future generations of income-eligible individuals and families who wish to reside in College Park.
Housing Matchmakers
We procure homes in College Park and facilitate their sale to income-eligible individuals and families.
Income Eligibility
The Trust works exclusively with families between 65 and 140 percent Median Family Income.
Support from Start to Finish
We support purchasers through the entire home buying process. We help aspiring residents of College Park can secure a home that meets their needs, at a price that is budget-appropriate.