Community Land Trusts – A Possible Key to Affordable Housing
A community land trust (CLT) is a community-owned nonprofit organization that acquires multiple parcels of land and then leases individual parcels to others at an affordable rate in perpetuity. The land is permanently removed from the market and never resold. Prior to the formation of a CLT, the nonprofit owner engages the residents in their service area to provide education and ensure that the CLT project aligns with neighborhood priorities.
CLT projects can include commercial development, urban agriculture/farming projects, and affordable rental and housing cooperatives. However, the core goal of CLTs is to develop and create homeownership opportunities that remain permanently affordable for current and future generations of low-income families.
Traditionally, a CLT’s governing board is elected by the membership; seats on the board are balanced and comprised of leaseholders within the CLT, residents from the community land trust’s service area who are not CLT leaseholders, and public representatives.
The following details how a typical community land trust for affordable housing operates:
An individual purchases a house that is situated on land owned by the community land trust
The purchase price is more affordable because the homeowner is only buying the house and leasing the land in a long-term, renewable lease.
The homeowner agrees to sell the home at a restricted price to keep it affordable permanently, but they may be able to realize an increase in value from improvements they make while living in the house.
The homeowner may transfer the ground lease by inheritance only to an eligible family member, subject to CLT approval, provided the successor agrees to occupy the home as their primary residence and comply with all terms of the lease.
The Community Land Trust model is designed to provide an alternative to market-driven models of land use and development by providing long-term affordability that protects and preserves permanently affordable housing and land. CLTs ensure that individuals can afford to stay in their homes despite economic volatility.
It is critically important that Detroit establish a durable and sustainable mechanism to preserve housing affordability. Many argue that models such as community land trusts were needed more than a decade ago, as during that period Detroit shifted from a predominantly homeowner city to one with an almost even split between homeowners and renters.
At the same time, housing costs have risen far faster than what most families can reasonably afford. A January 2025 CBS News article examining the impact of COVID-19 on property values found that Detroit now has one of the fastest-growing home-price markets in the country. Between 2020 and 2024, the average home price in Detroit increased by 72 percent, rising from $46,586 to $80,127. By contrast, median household income grew by only 15 percent during the same period, increasing from $32,498 in 2020 to $38,080 in 2024, according to the U.S. Census Bureau.
