Why do CLTs use a resale formula to calculate the sales price?
CLTs provide access to homeownership for people that cannot afford houses that are for sale on the real estate market. CLTs make homeownership affordable for today’s homebuyers as well as for future generations of homebuyers. CLT homes are affordable today because the CLT homebuyer recieve financial assistance from the community land trust to buy down the amount needed to purchase the house. The resale formula preserves the affordability for the next family who will buy the CLT house. Essentially, by agreeing to the resale formula, CLT homebuyers are agreeing to help another limited income family purchase a house in the same way that they were helped in purchasing their house.
