What is the ground lease?
Because a CLT owns the land and the homeowner owns the home, a CLT and the homeowner sign a ground lease that defines the roles and responsibilities of both the CLT and the homeowner. The ground lease allows the homeowner secure, long-term rights to use the land. CLT homeowners have exclusive use of the land, and they have full responsibility for the property. The nominal lease rates are different for each CLT, but with all CLTs, the lease fee gives the homeowner full use of the land and support services from the CLT. The ground lease is renewable, can be transferred to the family’s heirs, and ensures full rights of privacy. The ground lease also provides a resale formula that is used to determine the sales price, if and when the family decides to sell their CLT home.
