How does CLT homeownership work?
Homebuyers with CLT programs purchase only the house – and enter into a long term agreement with the CLT to lease the land. CLT homes are sold to families with limited incomes. These homes cost less than market rate homes because CLT homebuyers purchase only the house and enter into a long-term agreement – a 99-year ground lease – with the CLT for the use of the land. When a family decides to sell a CLT home, they sell only the house to another family with a limited income for the price that is determined by the resale formula in the ground lease. The home stays affordable for future generations. By taking the cost of the land out of the real estate transaction, land trust homes are more affordable than houses on the open real estate market.
