| Key Features of Classic Community Land Trust
The following section outlines the key features of the classic CLT:
Purpose: “A CLT is an organization created to hold land for the benefit of a community and of individuals within the community”. (The CLT Handbook). http://www.iceclt.org/resources.html
Corporate Status: “The basic CLT model calls for a not-for-profit corporation structured as a membership organization, with membership open both to those who lease land from the CLT and to other members of the community. The CLT model also calls for a corporation structured so that earnings and assets cannot be distributed to the members”. (The Community Land Trust Legal Manual). http://www.iceclt.org/resources.html
IRS Status: “Most, but not all, CLT’s are organized and operate to qualify for a 501(c)(3) exemption”. (The Community Land Trust Legal Manual). http://www.iceclt.org/resources.html
Ownership of Land: “The CLT acquires land through purchase or donation with an intention to retain title in perpetuity, thus removing land from the speculative market”. (The Community Land Trust Handbook) http://www.iceclt.org/resources.html
Leasing of Land: “In the case of owner-occupied housing, the CLT leases the land to occupants through a long-term (usually 99-year) renewable, inheritable lease”. (The Community Land Trust Legal Manual). http://www.iceclt.org/resources.html
Ownership of Buildings: “The improvements will be owned by the Lessee. This separation of ownership of land and buildings is at the core of the CLT approach to ownership”. (The Community Land Trust Legal Manual). http://www.iceclt.org/resources.html
Use of Buildings: “Absentee control and sub-leasing are specifically proscribed. A major requirement of the lease specifies that the landholder use the property personally and occupy the holding. (The CLT: A Guide to a New Model for Land Tenure in America”).
Alteration or Construction of Buildings: “Model lease requires owners to notify the CLT before construction. Some CLT’s require prior approval by the CLT of all proposed construction”. (Community Land Trust Legal Manual). http://www.iceclt.org/resources.html
Resale of Buildings: “The lease requires that, if the owners wish to sell, they must sell the home either back to the CLT or to another lower-income household for a price capped by a specified “resale formula.” Each CLT establishes its own resale formula, and these resale formulas vary in the extent to which they limit resale prices. In all cases, however, the formula is designed to balance the owner’s interest in recovering their investment in the home with a “fair” return on that investment and the community’s interest in limiting the price of the home to a level that will allow affordable resale to other lower-income residents.” (Community Land Trust Legal Manual). http://www.iceclt.org/resources.html
Service Area: “The CLT serves any particular geographic area specified in the bylaws of the organization.” (Federal CLT Definition). http://www.berkshireplanning.org/6/5/download/CHT_Federal_Definition.pdf
Corporate Membership: “The organizational structure of the CLT involves both those who occupy CLT housing and other residents of the local community.” (Community Land Trust Legal Manual). http://www.iceclt.org/resources.html
Composition of Board: “A CLT’s board of directors is composed of equal numbers of (i) lessees, (ii) corporate members who are not lessees, and (iii) any other category of persons described in the bylaws of the organization”. (Federal CLT Definition). The board of directors of the “classic” CLT is composed of three parts, each containing an equal number of seats. One-third of the board represents the interest of the people who lease land from the CLT (“leaseholder representatives”) One-third represents the interests of residents from the surrounding community who do not lease CLT land (“general representatives”) One third includes public officials, local funders, nonprofit providers of housing or social services and other individuals presumed to speak for the general public (“public interest representatives”). Control of the CLT’s board is diffused and balanced to ensure that all interests are heard but that no interest is predominant. (Key Features of the Classic CLT-J.E. Davis, Burlington Associates (4/4/01)
Selection of Board: “The board of directors is elected by the membership, with some directors elected to represent the occupant members and some elected to represent the non-occupant members”. (Community Land Trust Legal Manual). http://www.iceclt.org/resources.html |
