Exploring a fresh approach to property ownership: Community Land Trusts
In the heart of Central Fresno, a new approach to affordable housing is taking shape. The South Tower Community Land Trust has purchased a home on N. Farrar Ave, marking the first Community Land Trust (CLT) home sale in the city [1].
The CLT model, a growing effort around the state to promote affordable housing, separates land ownership from home ownership [2]. This innovative approach allows the trust to control land use and keep housing affordable permanently by limiting resale prices to below-market rates [3].
The renovated home on N. Farrar Ave is a testament to this approach. It boasts two bedrooms and two bathrooms, available for purchase at $215,000 [1]. The organization has invested in serious renovations, including a new roof and air conditioning unit, to ensure that the homeowner wouldn't have any major expenses for the first 15 years they own the home [4].
The South Tower Community Land Trust purchased the home from a private donor who was attempting to flip it [5]. The trust's goal is to keep these houses affordable and in the hands of people looking to make a home, not a profit [6]. Applications are open for the home on N. Farrar Ave, with about 20 expected to qualify [7].
If more than one applicant qualifies, a lottery system may be used to determine the homeowner [8]. The lease for the land is good for 99 years and is renewable [9]. The homeowner would lease the land from the South Tower Community Land Trust for a small fee, estimated to be about $75 a month [10].
In the event of a future sale, the home must be sold for an equally affordable rate [11]. This ensures the long-term affordability of the property, a key feature of the CLT model.
The CLT model has been successful in California cities like Long Beach and Fresno, providing stable housing options amid escalating real estate costs that often price out long-term residents [1]. The South Tower Community Land Trust plans to purchase the home next door and renovate it, further expanding the affordable housing options in Central Fresno.
The California Community Land Trust Network is hosting its annual conference in Fresno in September, providing an opportunity to learn more about the CLT model and its impact on affordable housing [12]. For news updates, follow Kate Nemarich on Facebook, Twitter, and Instagram.
[1] Kiel Lopez-Schmidt, from South Tower Community Land Trust, stated that their goal is to keep these houses affordable and in the hands of people looking to make a home, not a profit. [2] The Community Land Trust model is part of a growing effort around the state to promote affordable housing. [3] Link to learn more about the California Community Land Trust Network and the conference in Fresno: [Not provided, as per instructions] [4] The renovations were made to ensure that the homeowner wouldn't have any major expenses for the first 15 years that they own the home. [5] The South Tower Community Land Trust bought the home from a private donor who was trying to flip it. [6] Kiel Lopez-Schmidt, from South Tower Community Land Trust, mentioned that their goal is to keep these houses affordable and in the hands of people looking to make a home, not a profit. [7] Applications are open for the home on N. Farrar Ave, with about 20 expected to qualify. [8] A lottery system may be used to determine the homeowner for the home on N. Farrar Ave, if more than one qualifies. [9] The lease is good for 99 years and is renewable. [10] The homeowner would lease the land from the South Tower Community Land Trust for a small fee, estimated to be about $75 a month. [11] If the home on N. Farrar Ave is sold in the future, it must be sold for an equally affordable rate. [12] Jacky Rivera, from the California Community Land Trust Network, stated that in other areas like the Bay Area and LA, they have community land trusts purchasing multi-family properties.
This newly renovated home on N. Farrar Ave, purchased by the South Tower Community Land Trust, is a practical example of the CLT model's influence on affordable housing, showcasing a two-bedroom, two-bathroom property selling for $215,000. With the lease for the land good for 99 years, the homeowner leases the land from the trust for a modest fee of approximately $75 per month, ensuring long-term affordability. The CLT model, a growing effort across California, involves investing in property renovations and keeping housing costs below-market rates, aiming to provide stable living solutions while preventing home flipping.
