How Does CLT Homeownership Compare to Conventional Homeownership?
Community
Land Trust (CLT) homeownership is essentially
the same as other homeownership except that the land, which CLT homes are
located on are owned by the CLT.
Similarities:
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
Differences:
The purchase price is lower, because the land is not purchased by the homeowner
The CLT owns the land, the homeowner leases the land, securing the rights to use 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 continues to help limited income families the same way as buying a CLT home
.