|
10
Frequently Asked Questions
What
is a Community Land Trust?
CLT’s are not-for-profit organizations created to hold
land for the community or individuals within the community. The land
trust retains ownership of the land in perpetuity.
How
do CLT’s make homeownership affordable?
By removing the cost of the land, the purchase price is
lower than the homeowner would have to pay otherwise. Grants or low
interest loans may also be provided to more deeply subsidize the
cost of the house, making it affordable to people at lower incomes.
What
happens if the homeowner decides to move out of their home?
If owners want or need to move away permanently, they must
sell the house. A land lease places some limitations on the resale
of the home. Land leases prevent the resale to a household that does
not qualify as low or moderate income, and they limit the sales
price to keep it affordable. Subleasing is permitted only for
limited periods of time with the consent of the CLT.
How
does the CLT make sure that the home will be affordable –and
available- for other lower income households? The land lease lays out a “resale formula” that determines
the maximum price. The lease requires that the home be sold for an
affordable price to the CLT or to another lower income household.
How
do CLT’s acquire properties?
As tax-exempt organizations, CLT’s may receive gifts of
property from individuals or corporations. Often CLT’s acquire
city or county owned property from local governments. In other
cases, they purchase property in the open market.
What
types of housing do CLT’s provide?
A wide variety of housing – single family homes,
townhouses, condominiums, housing coops, affordable rentals,
shelters, etc.
Can
CLT's homes be inherited?
Yes, the home is an asset that can be left to the owner’s
heirs or to anyone else the owner chooses. When a home is inherited,
most CLT’s will allow the heirs to live in the home if they are
(1) children of the deceased owner, or (2) have already lived in the
home for a period of time, or (3) qualify as low or moderate-income
households. Heirs who do not meet any of these qualifications, or
who do not intend to live in the home, must sell the home in
accordance with the resale restrictions. They will receive the
proceeds from the sale.
How
are property taxes assessed?
Owners pay property taxes on their homes. CLT’s usually
pay taxes on their landholdings with the cost usually covered by
lease fees from those leasing the land.
Can
CLT’s homebuyers get mortgage loans even though they won’t own
the land outright? Leasehold
mortgages can be, and have been, insured by FHA, and have been
purchased on the secondary market by Fannie Mae, and a number of
state housing finance agencies, and some banks.
Why
does the City of Orlando support the development of a CLT
organization? The
City recognizes that CLT’s are a tool to accomplish the following:
-
To
retain the value of public investment for long term community
benefit
-
To
ensure that a portion of the City’s housing will always be
available and affordable to lower income people
-
To
revitalize neighborhoods without making the housing unaffordable
to the people who live there
-
To
sustain owner occupancy and prevent absentee ownership
|
