Community Land Trusts
A. Defining a Community Land Trust
A Community Land Trust (CLT) is a shared equity affordable homeownership model that conceptually exists between the homeownership and rental tenure models. Under the CLT model, a community based non-profit corporation purchases land and subsequently leases the improvements on the land, such as residential homes, to low income households. The CLT is set up in such a way that the low-income household will only achieve a limited equity return on its investment. Appreciation of the land is taken out of the price equation because the CLT holds the land on which the homes sit on in permanent stewardship. CLTs use various legal mechanisms to convey ownership and subsidize properties under resale constrictions set by a formula created by the CLT that allows the next buyer to also pay a below-market price.
B. Key Features of a Classic CLT
1. Nonprofit, Tax-exempt Corporation: A community land trust is an independent, nonprofit corporation that is chartered in the state where it is located. Most CLTs are started from scratch, but some are grafted onto existing nonprofit corporations.
2. Dual ownership: The CLT acquires multiple parcels of land throughout a targeted geographic area with the intention of retaining ownership permanently. The parcels do not need to be contiguous. Any buildings already located or later constructed on the land are sold to individual homeowners, condo owners, cooperative housing corporations, nonprofit developers of rental housing, governmental, or for-profit entities.
3. Leased land: CLTs provide for the exclusive use of their land by the owners of any buildings on the land. Parcels of land are conveyed to individual homeowners (or the owners of othe...
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...ce Inc also has a rental preservation program called “Working your way HOME” program.
6. Community Land Trust of Palm Beach County (CLT of PBC) : Formed in early 2006, and received its 501(c)(3) tax exempt designation in March of 2007. It is a countywide housing non-profit organization created for the purpose of providing permanently affordable housing opportunities for residents of Palm Beach County. 25% of one of its properties’ units, La Joya Villages will be set aside for families earning no more than 50% of the area median income. For its other property, Davis Landings, the Department of Economic Sustainability (DES) partnered with CLT of PBC to build the 25-unit affordable family rental community on 2.13 acres. The $5.7 million project was financed through the HUD Neighborhood Stabilization Program 2 (NSP2). Income requirements can be found on their website.
Zoning can be defined as the division of a city into districts and the application of specific land use regulations in each district (Bagley, 2016, p. G-32). So in this case, there is zoning relief to the purchasers as the real use of property is different from the land use regulations.
in which property is owned by the state or group, to be shared in common
Kennedy A. (2014) Castle Vale Housing Action Trust: Lessons in Regenerating Communities Lecture, University of Birmingham.
According to the Aquidneck Land Trust’s (ALT) website, it is a non-profit organization that aims to preserve Aquidneck Island’s open spaces and natural character for the lasting benefit of the community. The non-profit was founded in the 1990’s by a local group of residents to save many things on Aquidneck Island. Three things that these residents decided to focus on were saving the natural character, environmental health and the economic value of Aquidneck’s Island. In the early years of starting this organization, they made a goal to conserve 2,000 acres of land. This goal seemed impossible to accomplish but almost two decades after the non-profit was established, they surpassed the goal of conserving 2,000 acres of land. As John Fornoff
Under the new standard, a lease is defined as a contract that provides lessees the right to “control” the usage the “identified asset.” “Control” means accepting the substantial monetary benefits and having the right to decide how to use the asset. To meet the requirement of an identified asset, it has to be physically distinct which is not including natural gas or biological assets.
The National Trust is a charity which is independent from Government funding. However, they rely on the support of the public customers through membership and donations. Therefore the national trust is a registered charity which is also entitled to certain tax exceptions on their income and profits made from trading activities. They own more than 350 historic houses and ancient monuments. Nobody can sell or purchase any of the Trust’s properties without its permission.
(m) A description of the developer's reserved right, if any, to create limited common elements within any portion of the original condominium project or additional land added to the condominium project and to designate common elements which may subsequently be assigned as limited common elements.
The purpose of this trust is to replace lost wealth at death by providing for the surviving spouse. An ILIT is used to prevent the insured party from having incidents of ownership on the life insurance policy covering his own life. In an ILIT the grantor makes a deposit into the trust and receives an annual payment from the trust. Upon the grantors death the surviving spouse will receive the death benefit but it will be included in the grantors gross estate. An important thing to note when looking into ILITs is that they are irrevocable meaning that once you deposit into A ILIT the amount deposited can never been withdrawn. Unless the trust is subject to a Crummy withdrawal right, then the beneficiaries have the right to make withdrawals from the ILIT for a set period of time, usually 30 days. Crummy provisions are very helpful when it comes to irrevocable trusts because its one of the only ways to access the trust funds without
Bergdall, T. (2003). Reflections on the Catalytic Role of an Outsider in Asset based Community Development (ABCD)
What is a living trust? A living trust is an arrangement that designates a “trustee” to hold legal title of property for another person or beneficiary. When creating a living trust, you can designate yourself as the trustee in order to keep full control of the property placed in trust. The living trust is just what it sounds like: a trust you put in place when you are still alive instead of one that is created according to the terms of your Will upon your death. When the topic of a living trust comes up, the most common response from most clients is, “But I don’t have enough money to need a trust.” This brings to light a major misconception about estate planning. Equating the need for legal documentation/protection to the amount of money and
Rehabilitation is the process of reclaiming land for economical or conservation purposes. This process usually involves re-vegetation. The main aim in rehabilitation is to either return the land to a self-sustaining ecosystem or prepare the land for human use, i.e. crops, pastures and plantations. Rehabilitation should take place at a rate that is significantly higher than natural succession.
Except for charitable trusts, every trusts must satisfy three certainties of intention, subject matter and objects. Trusts that do not have a human beneficiary are generally void. The beneficiary principle requires a valid trust to have human beneficiaries. However, charitable purpose trusts are not subject to the beneficiary principle. To be a valid charitable trust, it must be for a recognized charitable purpose, for the public benefit and for exclusively charitable purposes. Charitable trust is exempt from the rule against perpetuities. For non-charitable purpose trust, it is a type of trust which has no beneficiaries but exists for advancing some non-charitable purpose of some kind and it needs to comply with the perpetuity rules. There
Two Types of Trusts There are two types of trusts , private and public trusts. A private
In order to secure land tenure for the urban informal settlers, different countries have introduced licenses or Certificates in different names. However they all have the same objectives. For instance, in Zambia residents are issued with a 30-year Occupancy Licences while the area undergoes through the process of upgrading. These can be later replaced by certificates of title, which carry the same effect as if the landowner were obtaining a direct lease of the land from the state (UN-Habitat, 2012). In Botswana, Certificate of Use is issued to informal dwellers so as to encourage them on further housing investment (Durand-Lasserve, 2006). In Brazil, Concession of the Real Right to Use is issued to residents. The validity period of these licences varies between 30 and 50 year periods but subject to renew (Van der Molen, 2002).