Ground Lease
Community Land Trusts help low and moderate income families benefit from the equity built through homeownership. Also at the same time they preserve the affordability of these homes so that future residents will have the same affordable homeownership opportunities. How is this done? First, by owning the land acquired with the assistance of grant subsidies, CLT’s are able to greatly reduce the initial housing cost to the potential buyer. Second, the land lease contains a resale provision which insures that if the house is sold, it goes to another low to moderate income homebuyer. The PDF document which is included here is a good place to begin understanding how this works. Homeward Bound homebuyers are encouraged to meet with a lawyer to review this document and discuss its implications.
