What Is a CLT?

A CLT (Community Land Trust) is a proven method of providing perpetually affordable housing. CLTs are prevalent in the US and UK (See map).

The CLT model that can be applied across Australia is a shared equity arrangement between a not-for-profit organisation and the Resident, with initially the CLT having at least a 20% equity share in the property, and the resident paying down a mortgage on up to 80% of the value of the property. The resale restriction in the deed returns most of the capital gains upon sale to the CLT, which stays with the property (typically 75% to CLT, 25% to owner). This allows the next resident to get into CLT housing much more easily than into open market housing.  In some jurisdictions a leasehold model may be more suitable.

CLT Organizations typically have a unique Board of Directors structure with extensive community and resident participation.  1/3 are normally residents of CLT housing; 1/3 are other residents of the geographical area of the CLT, and 1/3 are Public Interest “experts” such as CLT management, local government officials, housing experts, bankers, NGO reps, etc.


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