What is the ground lease?
How does community land trust homeownership compare to conventional homeownership?
Community land trust homeownership is essentially the same as other homeownership except that the land which DLT homes are located on is owned by the community based organization.
•The homeowner has a mortgage with a bank
•The homeowner accumulates equity
•The homeowner pays property taxes
•The homeowner can make alterations and improvements
•The homeowner receives federal tax deductions for mortgage interest and property taxes
•The purchase price is lower, because the land is not purchased by the homeowner
•The CLT owns the land, the homeowner leases the land from the CLT for a nominal fee
•If a family chooses to sell their home, the selling price will be lower – selling a CLT home helps limited income families the same way as buying a CLT home