Neighborhood Renaissance established its Community Land Trust (CLT) in 2005 with a grant from the Community Foundation of Palm Beach and Martin Counties. This initiative was undertaken to provide affordable ownership opportunities for Northwood/ Pleasant City low and moderate-income residents who were being displaced by the surge in housing prices. We also saw this as an opportunity to permanently secure the financial investments made to revitalize the area for the benefit of future generations.
A CLT separates the ownership of the home from the underlying land and retains title to the land. This results in a lower purchase price because the cost of the land is deducted from the sales price. The legal structure for a CLT is very similar to those used for condominium and town home communities. The rights of both parties are secured with a 99-year renewable ground lease that is filed at the County. Included in the document are restrictions that prohibit the CLT from selling the land under any home to a third party and it sets the allowable increases in the monthly land lease fee, including how often they may occur.
Today, our CLT has 13 homes that are permanently affordable for the area’s workforce. In the event of resale, these homes will only be sold to income qualified first-time homebuyers. We are currently looking for opportunities to expand the number of homes in our CLT. We want to preserve additional affordable homes for future homebuyers and to continue to stabilize the Northwood area.
For more information about the CLT, please contact Christina Hewitt, Housing Manager at (561) 832-6776, ext. 104.