Community land trusts (CLTs) are nonprofit organizations that create homes that are permanently affordable for lower income families. CLTs are run by boards that include community leaders, residents of CLT homes, and public officials. There are over 225 community land trusts in the United States, including about 30 in Florida.
Community land trusts have multiple benefits for families and neighborhoods:
They give more families the opportunity to own homes.
They give community members a meaningful voice in development.
They enable lower income households to build wealth.
They make tax dollars for affordable housing stretch further.
They help neighborhoods remain stable and keep the character that makes them special.
The JCLT refers prospective owners to HUD-qualified partner organizations that specialize in preparing lower income individuals for special mortgage and down payment assistance programs. Once they have been pre-qualified for a mortgage and educated about the specifics of the ground lease and resale requirements, these prospective buyers have an opportunity to purchase JCLT homes as they become available. For more information about JCLT homeownership, complete the contact form on the JCLT website at jaxCLThomes.org.
When families purchase JCLT homes, the JCLT keeps ownership of the land under the home and leases it to the homeowner for 99 years or until the home is sold. This is called a “ground lease.” The ground lease includes a resale formula that caps the price at which the home can be sold, ensuring that it remains affordable for the next lower income family.
In 2019, at the direction of Mayor Lenny Curry, the City of Jacksonville began a partnership with Florida Housing Coalition to develop a community land trust. In 2020, the Jessie Ball duPont Fund provided an initial grant to study community land trust best practices that would work in Jacksonville. That same year, Jacksonville became the first city in Florida to pass “First-Look” legislation, permitting a community land trust to have the first right of refusal on all municipal-owned real estate. The JCLT Board met for the first time in December 2021.
Why does Jacksonville need a community land trust?
There is a shortage of homes in Jacksonville that are affordable for lower income families. Because of this shortage, many families have no choice but to rent, often paying so much in rent that they do not have enough money left over to save or meet their other needs. Moving into affordable homes created by the JCLT enables these families to obtain mortgages with payments lower than the amount they are currently paying for rent, allowing their incomes to stretch further.
JCLT homeowners build household wealth in the form of home equity. In exchange for this opportunity, they agree to share their equity with the next homeowner so that the home remains affordable forever.
Can JCLT homeowners pass down their homes to their family members or children?
Yes, spouses, children, and other household members can inherit the property regardless of income level. However, they can only sell it to someone who is income qualified and agrees to the ground lease and resale formula requirements.
I am excited about the mission of the JCLT. How can I get involved?
The JCLT offers a variety of partnership opportunities:
Banks and other financial institutions provide mortgages tailored to community land trust requirements and the needs of lower income families.
Philanthropic partners donate resources to support the JCLT’s mission.
Experienced and qualified home builders develop quality homes on JCLT lots.
JCLT homeowners and community representatives serve on the JCLT Board.