What Is a Community Land Trust?
In Florida's skyrocketing real estate markets, the dream of homeownership has become increasingly unattainable for teachers, firefighters, and essential workers. A Community Land Trust (CLT) is an innovative, nonprofit solution to the affordable housing crisis.
The CLT acquires parcels of land (often through government grants, donations, or below-market purchases). The CLT retains permanent ownership of the land. It then builds homes on the land and sells the houses to qualifying low- and moderate-income families at deeply subsidized prices. The family receives a deed to the physical house, but they sign a 99-year ground lease for the land beneath it.
How the Affordability Is Preserved
The critical innovation of a CLT is the resale restriction embedded in the ground lease. When the homeowner eventually sells, they cannot sell at full market value. The ground lease contains a strict formula limiting the resale price to the original purchase price plus a modest appreciation (typically 1% to 3% per year, or 25% of the market appreciation).
This mechanism ensures the home remains affordable for the next family, and the next family after that, in perpetuity. Unlike a standard down payment assistance program (where the home is resold at full market price, and the subsidy evaporates), the CLT's subsidy is permanently locked into the land.
Florida CLTs in Action
Several Florida communities operate active CLTs. The South Florida Community Land Trust in Broward County and the Gainesville Community Land Trust are prominent examples. These organizations work closely with local governments, receiving city-owned vacant lots and county funding to build perpetually affordable single-family homes and townhouses for workforce families.
Related Terms
- Lease Agreement — The 99-year ground lease between the CLT and the homeowner
- Deed — The ownership document the homeowner receives for the house (not the land)
- Homestead Exemption — CLT homeowners can still claim Florida's homestead tax exemption
Barnes Walker Real Estate & Nonprofit Law
Barnes Walker's attorneys assist Florida municipalities and nonprofit organizations in structuring Community Land Trust ground leases, drafting resale restriction formulas, and navigating the complex intersection of affordable housing policy and real property law. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 736 (Florida Trust Code)
The Florida Trust Code governs the creation, modification, and administration of trusts, including trustee duties, beneficiary rights, and trust termination.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC