COMMUNITY LAND TRUST
KANSAS CITY MISSOURI
Vinelanders Community Land Trust
“To create quality housing for the low to
moderate income residents of our
Community, who provide vital services,
and who cannot presently afford today’s
costs for shelter.”
Who is the Vinelanders Community
− Land Trust renters
− Other non-profits
− Local Business & Community members
Non-Profit 501(c)(3) corporation
What are Community Land Trusts?
Community Land Trusts (CLT) are nonprofit
organizations that provide homeownership
and rental opportunities for underserved
Acquiring land and retaining title to it
Selling improvements ONLY, subject to 99-
year renewal “ground lease”, at deeply
Guaranteeing long-term affordability of the
homes through resale and income restrictions
What are Community Land Trusts?
Acquire land through donation or purchase
removing land from the market
Placing long-term control of land in hands of
Allowing community to control use,
disposition and affordability of buildings
located on CLT-owned land
– Insurance, occupancy, maintenance, etc.
– Receive notification
– Calculate resale price
– Identify member buyer – from waitlist(?)
– Manage transfer – issue new lease
– Conflict resolution, when necessary
Preserve Affordability for Future Residents
Promote Homeownership for Low-Income
Protect Housing Security for First-time
Retain the Value of Scarce Public Subsidies
Provide Safety Net for Residents
How does a Community Land Trust work
For single-family homeownership?
Subsidy is used to remove or reduce land cost
from the home purchase price
CLT owns and holds title to the land forever
CLT conveys use of lot to qualified homebuyer
via a 99-year, renewable, inheritable ground lease
Homeowner owns home and all improvements
Ground lease (to land) and Deed (to home) are
recorded in land records.
How does the CLT keep for-sale
housing permanently affordable?
CLT asks homeowners to share with future
homeowners the affordability that was created
In order to keep homes permanently affordable,
homeowners agree to limit the price at which
they can sell their homes
The benefit of public and private subsidies are
preserved for future generations
Our Community’s Challenge
What we mean by Affordable Housing.
Why focus on affordable housing?
Is “affordable housing” really affordable?
What are some of the challenges to
constructing Workforce Housing
What are some solutions?
How the Vinelanders Community Land Trusts
addresses housing affordability
What do we mean by Affordable
Quality housing and dignified living conditions
for working residents of all income levels.
It is not a separate class or type of housing
Housing that is affordable to people who work
and contribute to our community.
Why Focus on Affordable Housing
Business needs workers
Increase in productivity, revenue
Teachers, receptionists, nurses aids, day care
providers, police officers, cooks, fast food providers,
health care workers, entrepreneur, and first time
homeowners, and growing families.
Community Land Trust Address
To provide affordable home ownership and
Build better communities
Encourage strong neighborhoods
Keep homes affordable in perpetuity
Community Land Trusts Support
Affordable Housing Preservation
“The CLT form of homeownership represents
the only true affordable housing preservation
strategy for single-family for-sale housing” –
CLTs control housing costs by permanently
limiting land costs and locking in subsidies to
benefit one homeowner after another,
eliminating the need to secure additional
subsidies upon each resale.
Securing Project Subsidies
CLT Ground Leases
A long-term lease of land (often 99 years) in which
the tenant is allowed to improve the land and use it
for the term of the lease at the end of which the land
and all improvements revert to the control and
occupancy of the owner.
Protecting the homeowner’s interests:
Security, privacy, equity, legacy
Reasonable rate of return on investment
Protecting the CLT’s interests:
– Resale restriction to protect affordability
– Incentives for lessee to maintain, improve
CLT Ground Leases
Balance lessee and community interests
Long terms; often 99 years
Model lease for homeownership
Institute for Community Economics
Tried and true approach nationally
CLT separates ownership of land from home.
Land Trust retains ownership of land.
Homebuyer buys - and owns - the home.
Land Trust leases land to homeowner.
Limited Equity Houses
CLT vs. Deed Restriction
DEED RESTRICTION LAND TRUST
Can preserve affordability for Can preserve affordability
a fixed period of time (ex. 50 for an indefinite period of
Land ownership insures
Relies on Title co. to
enforce restrictions enforcement
Frequently rely on sellers to CLT generally finds eligible
find buyers buyers
Monitoring and Specialized stewardship
generally staffed by local (CLT) responsible for
government monitoring and administration
No dedicated revenue for Ground Lease fees support
administration admin costs
Resale Restrictions: Shared
Goal: Permanent Affordability
Method: Limited Equity Provision
Reasoning: All agree that…
− homes should be affordable
− without the CLT structure could not purchase
− In exchange for opportunity agree to pass it
CLT homeowner paid CLT $90,000 when it purchased the CLT
At the time of purchase CLT home was appraised at $105,000.
At the time CLT homeowner seeks to resale the CLT home for
the appraised value of $125,000-an appreciation of $20,000.
Twenty-five percent (25%) of $20,000 is $5,000.
The purchase price equals what the CLT homeowner original
paid ($90,000) plus twenty –five percent of the appreciation in
Therefore the CLT homeowner can resell the CLT home (to
either the CLT or another low income purchase) for the
Purchase Option Price of $95,000.
The right to the use and occupancy of real
property by the existence of a lease
agreement. The agreement includes:
A stipulated period of time and renewal
Cost associated with the lease
Ability to Use and
improve the property
Right to Sell and
Place to Call
Will to Survivors Home
Who Benefits from Community Land
Working families in high-cost areas, as well
as resort communities
Communities experiencing rapid home price
appreciation leading to displacement of
Challenges to Constructing Affordable
Supply & Demand
Sharply constrained supply
Large lot restrictions
Location, Location Location
Vinelanders Community Land Trust’s
mission is to create livable
communities…one homeowner at a
How can you help?
- Become a member
QUESTIONS & ANSWERS