CLT Frequently Asked Questions

Where can I get CLT training?

The Florida Housing Coalition’s Community Land Trust (CLT) Institute is the premier training hub for anyone looking to start, strengthen, or expand their CLT knowledge. Our expert-led programs cover the fundamentals of shared equity housing, best practices in CLT governance, and practical tools for long-term sustainability. Whether you are new to CLTs or seeking to deepen your expertise, the CLT Institute provides tailored learning opportunities that connect you with peers and seasoned practitioners across Florida and beyond.

Don’t miss the chance to take part in our next training — October 1st marks the beginning of our next CLT training cohort, and we invite you to register today .

What exactly is a Community Land Trust?

In the Community Land Trust (CLT) model, housing is made affordable by separating its value from the value of the land underneath it. A qualified low-income homebuyer can purchase the house, but the land is owned by a community-based nonprofit corporation, which provides a 99-year ground lease to the homeowner. Because the sales price of the home does not include the value of the land, the homebuyer has an affordable monthly mortgage payment and a nominal ground lease payment.

Many nonprofits that form a CLT are already involved with developing or maintaining affordable housing in the community they serve, and can readily adapt from producing and selling the house with the land to selling the house together with a 99-year leasehold interest in the land.

What is the role of a local government when forming a CLT?

Several local governments in Florida recognize that CLTs can play an important role as stewards of community resources for current and future residents. Local governments typically provide CLTs with essential resources for startup and sustained operation, including donating publicly owned land, providing construction financing, offering down-payment assistance to CLT homebuyers, and providing ongoing administrative support to the CLT.

From the perspective of local governments, CLTs use public subsidies more efficiently than traditional homebuyer subsidies. By taking a property out of the speculative market, a CLT is often able to recycle an initial subsidy for many subsequent homebuyers.

How large an area does a CLT serve?

Some CLTs serve a single neighborhood (e.g., Hannibal Square CLT in Winter Park). Others serve a city or county (e.g., Delray Beach CLT or the Community Land Trust of Palm Beach County). A CLT can extend beyond a single county; for example, Champlain Housing Trust in Vermont serves a three-county area.

When defining boundaries, CLTs consider the interests of founders, market characteristics (household income, sale prices), and the availability of affordable housing opportunities. In Florida, it is important to be mindful of the variety of submarkets in any community, each with distinct economic conditions and political climate.

How does the CLT make sure that the home will remain affordable?

The 99-year ground lease places limitations on resale, requiring the home be sold to another income-qualified family. The lease prescribes a “resale formula” that keeps the home affordable to the next buyer while providing the seller with a fair return. Most CLTs use appraisal-based formulas that set a maximum price as the sum of what the seller paid plus a percentage of any increase in market value.

Is it fair to restrict resale prices for lower-income CLT homeowners?

CLTs commonly operate in high-cost areas and serve families between 50% and 80% of area median income—families who might not otherwise afford a home in neighborhoods with strong amenities. CLT homes offer advantages over renting—stability, proximity to employment, a path to build wealth, and the ability to pass the home on to children—while allowing public resources to assist more buyers over time.

Ultimately, a CLT works only with community initiative and buy-in. Each community must weigh the objectives of wealth creation and long-term affordability and determine whether sufficient demand exists among low-income families for CLT homeownership.

How do property taxes work?

Typically, the homebuyer is responsible for real property taxes on both the land and the home. Ground-lease provisions usually provide either (1) that taxes are spread over 12 months and paid to the CLT with the nominal lease fee, or (2) that the homeowner pays the bills directly. Some jurisdictions issue one tax bill; others issue two (one for land, one for the house). A 99-year ground lease is treated as the functional equivalent of ownership in Florida, so the tax bill for the land may be sent directly to the homeowner.

Florida Statute 193.018 instructs property appraisers to assess CLT properties in accordance with their resale-restricted value, rather than open-market value, codifying common practice across many counties.

Can CLT homebuyers get mortgage loans even though they won’t own the land outright?

CLTs negotiate mortgage agreements that address lender concerns while protecting the CLT’s long-term interest. These agreements typically allow the CLT to act to prevent foreclosure and an open-market sale. Such mortgages give the lender a claim on the borrower’s house and leasehold interest; the CLT’s fee interest in the land is not mortgaged.

As lending standards tightened after the recession, many CLT buyers turned from Fannie Mae to FHA insurance; however, secondary-market constraints mean lenders often need to portfolio CLT mortgages. Building relationships with banks willing to hold these loans has become increasingly important.