A community develops a nonprofit organization called a Community Land Trust
The Land Trust creates a fund through grants, private invesments, and local government participation
It requires parcels of land that have been identified as appropriate for residential development
The Land Trust holds this land in perpetuity
The Land Trust may also provide subsidies for down payments and closing costs for qualified buyers in a way that is more efficient than traditional methods
Once a home is built on Land Trust land, the Land Trust leases the parcel of land to the homebuyer at a nominal cost. This reduces the overall cost of the housing and makes the monthly mortgage payment more affordable to low-income families
The Land Trust works with builders and nonprofit organizations committed to affordable housing to develop, finance and/or operate new housing units or renovated structures on the land it holds
