How CLTs Work

CLTs allow homeowners to purchase housing structures at affordable prices not subject to market pressure, and the CLT retains ownership of the land, for which homeowners pay a minimal land lease.

Should the homeowner decide to sell, CLTs also ensure the continued affordability of the home for subsequent buyers. Homeowners in the community and representatives of the public will then work together to govern the CLT and ensure that it is used to benefit the community, and that owner-occupied homes indeed remain affordable on an ongoing basis.

It would be easy for most people to believe that the issue of affordable housing has no bearing on their lives. This is far from true. Regardless of an individual’s socioeconomic status, the lack of adequate affordable housing affects everyone in the community – not only those in need of safe, secure, affordable homes – because it affects the city’s ability to function and prosper.

For instance, there is a significant economic impact on a community when there is insufficient affordable housing available for low- to moderate-income families. That impact encompasses job insecurity, increased homelessness, lost municipal revenue and a decreased tax base, an increased burden on public services, increased costs for health care, less diversity of talent and skills in the workforce, and diminished ability to attract new business to the area.

The combination of a lower tax base and greater pressure on existing resources also has an inevitable effect on the city’s ability to provide the amenities and services supporting the overall quality of life in Greensboro. This outcome means less capacity to refurbish public buildings and streets, or to maintain parks, playgrounds, pools, and transportation, not to mention fewer resources for first responders, hospitals, and schools.

Conversely, CLTs will help Greensboro provide for its most vulnerable residents by broadening access to stable, affordable housing, and enabling them to build and preserve generational wealth. This in turn increases the pool of thriving, productive consumers and ambassadors for the community that made it possible. Increased access to affordable housing for those who need it today means a brighter future for the Gate City and all its residents.