One of the most common questions we receive is how we will ensure that the future homes at Karwick Village remain affordable. One way we will do this is to model our Karwick Village project like as a community land trust. Homeward Bound Villages recognizes the need for the homes we build to remain forever affordable. So, you may be asking yourself what a is community land trust? In today’s blog post, we are going to explain what a land trust is and how it is used to keep rents affordable.
A community land trust (CLT) is a nonprofit organization that owns land on behalf of the community. Its goal is to create and preserve affordable housing for generations to come. Think of it as a way to separate land ownership from the ownership of the buildings on that land. In the case of Homeward Bound Villages, we will operate as a land trust would, owning the land and the rental units.
Here’s how it works: We act as a land trust that permanently owns the land and dwellings, while individuals will rent the buildings on the land at Karwick Village.
How Do Land Trusts Make Housing More Affordable?
Traditional affordable housing often faces a common challenge: when initial affordability requirements expire, properties can be sold at market rate, eliminating affordable units from the community. Traditional community land trusts solve this problem in several ways:
- 1. Permanent Land Ownership: By maintaining permanent ownership of the land, the trust ensures long-term affordability and community control.
- 2. Reduced Housing Costs: When developers or property owners don’t need to purchase land, the overall cost of housing development decreases significantly.
- 3. Democratic Control: Land trusts are typically governed by boards that include residents, community members, and local stakeholders, ensuring decisions benefit the community.
- 4. Stable Ground Leases: Buildings on trust land operate under long-term ground leases that include affordability requirements, protecting both current and future residents.
How Housing Nonprofits Use Land Trusts
Across the country, housing nonprofits are increasingly turning to the land trust model. Here are some common approaches:
- Rental Housing Development: Organizations manage affordable rental properties on trust-owned land.
- Partnership with Developers: Land trusts work with private developers to create mixed-income communities while ensuring long-term affordability for a portion of units.
- Preservation: Trusts purchase existing properties to prevent displacement and maintain affordability in changing neighborhoods.
Our Vision for the Community
We’re planning to create 12 new affordable rental homes and act as a land trust property in our community at Karwick Village. These homes will serve individuals earning between 30% and 50% of the area median income, and their rents will remain affordable for the long term.
By replicating the land trust model, we can:
- Ensure these homes remain affordable for generations
- Create stable housing opportunities for local families
- Build community wealth
- Prevent displacement as our neighborhood changes
- Provide residents with a voice in property governance
Join Us in Creating Lasting Change
The land trust model represents a powerful tool for creating permanent affordable housing in our community. As we move forward with our development plans, we invite you to learn more about this innovative approach and get involved in shaping the future of housing in our community.
Want to learn more or get involved? Contact us today to:
- Attend an upcoming community meeting
- Support our affordable housing initiatives
- Learn about resident opportunities
- Volunteer with our organization
Together, we can create housing that remains affordable for generations to come.
