Skip to main content

Report Proposes Community Land Trust Solution for Affordable Housing

Phil Hall
Jun 21, 2016
Can community land trusts be used to expand the limited inventory of affordable housing options

Can community land trusts be used to expand the limited inventory of affordable housing options? A new report from the Center for American Progress (CAP), a left-of-center think tank in Washington, D.C., believes this could be an option.

In the new report “Community Land Trusts: A Promising Tool for Expanding and Protecting Affordable Housing,” CAP argues that this strategy can be used to help transition lower-income families from rental housing to homeownership. In this scenario, a community land trust would acquire and manage the land where affordable homes can be built and sold to income-qualified families at below-market rates. However, any buyer that eventually seeks to move out must agree in advance to resell the property at a price that would be affordable to other low-income owners.

However, the CAP acknowledged that this scenario would not occur in the immediate future. Of particular concern was access to mortgage financing, with CAP urging that the Federal Housing Finance Agency prioritize support for shared equity models including community land trusts.

“The model is still evolving and has not yet achieved the critical mass that would allow it to have a broader impact on the housing market,” said Michela Zonta, senior policy analyst at CAP and author of the report. “However, it is very promising, and it is worth encouraging its expansion, especially because it challenges the conventional housing market through an emphasis on the collective ownership of land in perpetuity.”

Published
Jun 21, 2016
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021