What Is a Community Land Trust?
A community land trust (CLT) is a nonprofit organization that helps make homeownership permanently affordable in a community by separating ownership of the land from ownership of the home.
Grand Forks Community Land Trust (GFCLT) was formed in 2010 by community members committed to providing permanently affordable homeownership opportunities. It was the first CLT in North Dakota and is part of a national model used in hundreds of communities.
How a CLT Works
At a CLT:
The homeowner owns the house (the structure and improvements).
The land is owned by the CLT and leased to the homeowner through a long-term ground lease.
This model makes homes more affordable because the cost of the land is removed from the purchase price. Buyers pay for the home itself, but lease the land from the CLT for a nominal monthly fee.
When a CLT homeowner decides to sell, the price is controlled by a resale formula that limits how much the home can appreciate. This allows future buyers to purchase the home at a price they can afford, while the original homeowner still benefits from a portion of the equity they helped build.
What Makes a CLT Different?
CLTs differ from traditional homeownership in a few key ways:
Land ownership stays with the community
Instead of a homeowner buying both the house and the land, the CLT retains the land in trust for the community’s long-term benefit.Long-term affordability
Because homes are resold at prices determined by a shared equity formula, they remain affordable for future buyers instead of being subject to market speculation.Ongoing support
CLTs often provide counseling and support before, during, and after purchase, from education to foreclosure prevention, to help buyers succeed.
How GFCLT Does This in Grand Forks
Since its founding in 2010, GFCLT has worked to acquire homes and land throughout Grand Forks County and preserve affordability for qualifying buyers. Each home GFCLT places in its program is overseen by a ground lease that ensures affordability now and for years to come.
Whether through acquiring existing homes or partnering with the community to build new ones, GFCLT’s work helps families find stability, build equity, and remain part of the community they call home.
Why This Matters
Traditional homeownership can be out of reach for many households because of rising land and construction costs. By removing the cost of land and limiting resale prices, a CLT preserves affordability in a way that serves both today’s buyers and future generations.
If you’re interested in learning more about how CLTs work or how they may benefit you, please contact us directly.
Ready to Take the Next Step?
If you think you may qualify, the next step is to start the pre-application process or explore current listings.