Community land trusts are nonprofit, community-based organizations designed to ensure community stewardship of land.
Community land trusts can be used for many types of development, but are primarily used to ensure long-term housing affordability. To do so, the trust acquires land and maintains ownership of it permanently. With prospective homeowners, it enters into a long-term, renewable lease instead of a traditional sale. When the homeowner sells, the family earns only a portion of the increased property value. The remainder is kept by the trust, preserving the affordability for future low- to moderate-income families.
The length of the lease (most frequently, 99 years) and the percentage earned by the homeowner vary. Ultimately, by separating the ownership of land and housing, this innovative approach prevents market factors from causing prices to rise significantly, and hence guarantees that housing will remain affordable for future generations.
Your charitable donation to the El Dorado County Community Land Bank at the El Dorado Community Foundation will fund Housing El Dorado in their mission to acquire property and build housing that will be sold or rented to low income-qualified families & individuals.
These homes will be subject to an inheritable and renewable 99 year ground lease subject to occupancy and maintenance obligations with a resale restriction limiting the sale price to the change in area median income, thereby providing permanent affordability.
The ground lease also includes an option for Housing El Dorado to repurchase the home upon sale or to prevent foreclosure.