Community land trusts are a
pioneering model of housing developed in the USA, in which the land is removed
from the market and held by the CLT. Homeowners can buy or rent their homes
while securing full rights of use to the land via 99-year renewable and
inheritable ground leases. The value of homes over time is determined by resale
mechanisms designed to return equity gains to homeowners while ensuring
affordability to the next eligible buyer. The model has shown resilience and
success in the USA, where CLT homeowners have been able to buy affordable homes
while markets were running hot and withstand the foreclosure crisis,
foreclosing at much lower rates than the housing market average. CLTs can
develop diverse portfolios of affordable home ownership, rental, community and
commercial properties, all underpinned by a transparent and accountable
governance mechanism.
See Louise Crabtree and a passionate group of people talk about Community Land Trusts, what they are and why they are important
http://www.youtube.com/watch?v=8hVFEIm1zTM