Frequently Asked Questions
What is a Community Land Trust?
A Community Land Trust, or CLT, is a nonprofit organization that owns land and develops housing for the purpose of creating permanently affordable homes. Homes on CLT land are owned or rented by households, and the land, which is owned by the CLT, is leased to the residents for a modest fee.
The heart of this organization is the creation of homes that are permanently affordable, providing sustainable homeownership opportunities for generations of individuals and families whose housing needs are not met by the traditional market.
Why does our region need more affordable homes?
A recent study of housing in our region shows us that:
Rents and home prices in our region have increased faster than incomes. For example, in Walla Walla County, the median home resale value has increased from $197,800 in 2015 to $296,600 in 2020, a 50% increase over five years.
The rate of new home construction has not kept up with demand.
Real estate is increasingly used as an investment tool, which helps drive up housing prices.
Families with young children are often priced out of the housing market because their incomes are relatively low, and childcare costs are high.
Employers have experienced difficulty attracting and retaining employees due to the shortage in affordable homes.
Many people do not live in the same community where they work, because of the lack of affordable homes for them. Long commute times mean they often cannot be active members in either the community where they work or where they live.
Why create a community land trust? What are the benefits of CLT homeownership?
In a community land trust, homeownership is sustainable for residents and the community. CLT homes remain permanently affordable, including for all subsequent homebuyers.
A CLT provides homeownership opportunities to people whose needs are not met by the traditional housing market. Homeownership creates stability for families and individuals. Homeownership also creates security, pride in ownership, equity, and legacy.
A CLT is a community-based organization. CLT residents elect their board representatives, creating opportunities for participation and ensuring that all residents’ voices are heard.
A CLT is a community asset. The community at large benefits by having affordable homes available for its members. When people live in stable homes close to where they work, study, and receive services, they are better able to engage in their community.
What do you mean by “affordable” homes? What do these homes typically cost?
Affordability depends on a household's income. Homes are affordable when total housing costs are no more than one-third of a households' pre-tax income. Common Roots homes will be affordable for low- and moderate-income households.
Where does the money come from to fund a community land trust?
CLTs are usually supported by a combination of private and public investment. In the early years when a CLT is just getting started, it is pretty common for it to be supported mostly by private individuals, businesses, and foundations that understand the benefit of more affordable housing in their community. Once the CLT has developed a track record of success, it may apply for public funds, and may even attract local funding support through ballot-approved initiatives. Community land trusts can become financially self-sustaining through their lease revenue.
How does a community land trust acquire land?
A CLT acquires land in a variety of ways, including:
Receiving transfers of land from governments or other entities;
Receiving gifts from private donors; and
Purchasing land using funds they receive from public sources and private donations.
Who is eligible to buy Common Roots homes?
Common Roots applicants will be people who live and/or work in the community and who cannot afford to purchase market-rate homes. These are individuals and/or families who would qualify for home loans.
Will all the Common Roots homes be newly built?
No. Although Common Roots will build homes, Common Roots is also interested in purchasing and renovating existing homes that are not currently occupied or are uninhabitable. This would lower the cost of homes, as they would already have existing infrastructure and utility connections. Common Roots may also purchase the land of interested existing homeowners, so they can stay in their homes by reducing the cost of homeownership. This way, the land on which they live would be added to Common Roots’ portfolio.
Will the homes built by Common Roots Housing Trust all look alike?
No. Common Roots will develop a variety of home sizes and layouts to meet the housing needs of our communities. Common Roots plans to preserve the unique nature of the local architecture and to create a variety of high-quality homes that are attractive and blend in with the surrounding neighborhoods.
Who makes decisions for Common Roots?
Common Roots will be governed by a board of directors, and managed by a director. Common Roots will use the traditional CLT tripartite board structure of one-third public-sector representation, one-third private sector representation, and one-third CLT resident representation. Our aim is to create a board that is diverse and representative not only of community stakeholders, but also of potential Common Roots residents.
Can a Common Roots homeowner sell their home?
Yes. Common Roots homeowners will be able to sell their homes. The resale price of Common Roots’ homes will be determined by a formula that will give sellers a fair return on their investments while giving subsequent buyers access to the homes at affordable prices. Common Roots homes may also be passed to residents’ family members while preserving affordability.
Will Common Roots be just for homebuyers or will there be rental options?
Our primary goal is to assist people to purchase homes they could not afford if they had to purchase the land and to keep those homes permanently affordable. We are considering including rental properties, especially if the need is high for that type of home.
What would the mortgage on a Common Roots Housing Trust home look like?
The mortgages on these homes are intended to be affordable, meaning the entire housing cost per month will be equal to or less than one-third of the household’s income at the time of purchase. Common Roots will provide financial services to support residents’ financial well-being and prevent foreclosure.
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