What Is a Community Land Trust (CLT) and How Does It Work?
For many Floridians, the dream of homeownership feels increasingly out of reach. Rising prices, bidding wars, and investor competition have made it difficult for working families, retirees, and first-time buyers to find affordable homes—especially in desirable areas like Orlando, Kissimmee, and the surrounding region. But one lesser-known solution is gaining ground: the Community Land Trust (CLT).
In this post, we’ll break down what CLTs are, how they work, who can qualify, and what the process typically looks like—so you can make an informed decision about whether this model is right for you.
What is a Community Land Trust?
A Community Land Trust is a nonprofit organization that owns and manages land on behalf of a community. Its mission is to provide permanently affordable housing by separating ownership of the land from ownership of the home. Homebuyers purchase the house at a below-market rate, while the CLT retains ownership of the land underneath it. The buyer signs a long-term ground lease (typically 99 years), which gives them exclusive use of the land while ensuring the home remains affordable for future buyers. This model helps communities combat displacement, preserve affordability over generations, and empower families to build equity—even if not at full market pace.
How Does it Work?
The CLT acquires land, often through donation, public funding, or community partnerships.
Homes are built or rehabbed on the land, and offered to qualified buyers at affordable prices—significantly below market rate.
Buyers purchase the home (not the land) and sign a renewable 99-year ground lease with the CLT.
The ground lease includes terms that:
Ensure owner occupancy
Restrict resale price to keep the home affordable
Require maintenance and property upkeep
When the homeowner sells, they receive a portion of the home’s appreciation—but the next buyer also benefits from affordability.
Is This Like a Mobile Home on Leased Land?
Not at all. While both situations involve leasing land, a Community Land Trust offers long-term legal protections, equity-building, and resale rights that you do not get in a typical mobile home park or leased-lot scenario.
Here’s the key difference:
CLT vs. Mobile Home on Leased Land
| Feature | Community Land Trust | Mobile Home on Leased Land |
|---|---|---|
| Land Ownership | CLT nonprofit owns land permanently for community benefit | Private owner or corporation owns land for profit |
| Lease Term | Long-term (usually 99-year), renewable lease | Short-term or month-to-month lease |
| Equity | Owner builds equity and earns a share of appreciation | Little to no equity; depreciation is common |
| Resale Rights | Owner can sell with restrictions to maintain affordability | Must often move home or get park approval to sell |
| Stability | Legal protections in lease; stable housing model | Leases can be raised or terminated at owner’s discretion |
| Community Focus | Mission-driven, nonprofit governance | For-profit; less resident control |
Who can Qualify for a CLT Home?
CLTs are typically geared toward low- to moderate-income households, but the exact income limits and qualifications depend on the organization and funding sources.
Basic qualifications often include:
Household income within a certain percentage of Area Median Income (AMI)—commonly 60% to 120%
Commitment to owner-occupy the home (not use as a rental)
Demonstrated need (e.g., cost-burdened renter, first-time buyer)
Ability to qualify for a mortgage (more on that below)
What’s the Process Like?
Each CLT may have slight variations, but here’s a general outline of what to expect:
1. Application
Submit an application with household and income documentation.
Attend an orientation or info session hosted by the CLT.
2. Pre-Qualification
Get pre-approved by a mortgage lender that’s familiar with CLT guidelines.
Some CLTs have partnerships with specific lenders; others may allow buyer choice.
3. Homebuyer Education
Most CLTs require you to complete a HUD-approved homebuyer education course, which prepares you for long-term ownership responsibilities.
4. Property Match
Once approved, you’ll be shown available CLT homes and can select one that meets your needs.
5. Closing
The transaction works like a traditional real estate closing, with the CLT involved in the process.
You’ll close on the home (not the land) and sign the ground lease with the CLT.
Do I need a Special Lender?
Some CLTs partner with approved lenders who understand the ground lease structure and underwriting process. However, depending on the CLT, you may be able to use any lender as long as:
The lender agrees to the CLT’s lease and resale restrictions
The underwriter is comfortable with non-traditional land ownership
Tip: Local credit unions and community banks are often more familiar with these programs than national lenders.
What About Down Payments?
One of the biggest advantages of buying through a CLT is a significantly lower down payment. Because the land is owned by the nonprofit trust, the purchase price is typically much lower than comparable homes on the open market. Most buyers only need to bring 3% to 5% down, and some qualify for down payment assistance or low-interest programs through city, county, or lender partnerships.
This makes CLT homes especially attractive for first-time buyers or those with limited savings—but strong, steady income.
What Might Disqualify a Buyer?
While the process is designed to be inclusive, some factors that might limit eligibility include:
Income above the program limit
Poor credit or inability to secure financing
Intent to use the home as a rental or investment
History of foreclosure or eviction (varies by CLT)
Incomplete documentation or failure to complete homebuyer education
Every CLT is a little different—some may be more flexible than others, especially if funding comes from local sources rather than federal HUD programs.
What are the Pros and Cons?
What Are the Pros and Cons?
Pros:
Significantly lower purchase price
Long-term housing stability
Builds equity (though limited)
Protection from rising land costs and speculation
Community-based governance and support
Cons:
Limits on resale price = less profit when selling
Resale process must go through CLT
May not qualify for all loan types
Not available in every area or for every buyer
Buying through a Community Land Trust is a powerful path to affordable homeownership—but it’s not always easy to navigate alone. From understanding eligibility to working with the right lender and submitting a strong application, every step matters. As a licensed Florida agent who actively tracks these opportunities, I can help you find the right program, understand the fine print, and move forward with confidence.
Reach out today to explore your options—or just to ask questions. I’m here to help you take the next step toward ownership, without the guesswork.
