Housing Land Trust - Frequently Asked Questions

1. What is Housing Land Trust (HLT) and how does it work?
   • Housing Land Trust uses the Community Land Trust (CLT) model
   • Homeowners own the home and all improvements
   • HLT owns and holds title to the land
   • HLT leases the land to homeowners for a monthly fee through a 99-year Ground Lease
   • Memorandum of Lease and Deed are recorded, enforceable, legally binding documents
2. Benefits of the Living in an HLT Home:
   • Long-term security of homeownership
   • Fixed housing expense
   • Tax deductions
   • Equity accumulation
3. Where is the CLT model used? The model is widely used around the country and the world. There are currently over 300 CLTs nationwide and this number continues to grow. Many cities and governments partner with CLTs to provide a way to create homeownership opportunities for the local workforce who would otherwise be priced out of the housing market.
4. Why do we need HLT? When incomes do not rise as fast as housing prices, many people cannot afford to buy a market-rate house. HLT helps low- and moderate- income households purchase a home in their community and offers a chance to build equity.
5. How does HLT make homeownership affordable? The price of the home is tied to an income level and made affordable to the initial buyer. At resale, the homeowner can then sell it at a price that is affordable to the subsequent buyer.
6. 5. What happens if the owner wants to move? You can sell your home at any time and you must do so through the HLT program at a price affordable to the next qualified buyer. Reach out to HLT if you would like to sell your home.
7. What about taxes? The homeowner pays all the taxes associated with the property. Property taxes are based on what you paid for the home, not the appraised market value, making the payment lower for you. The lease for the land is a 99-year renewable term, making the responsibility for the land yours, the same as ownership.