What do you get when you combine a CLT with a LECH? Affordable housing that works!

I am currently working with the San Francisco Community Land Trust (SFCLT) to create affordable housing that combines limited equity cooperative housing (LECH) with a community land trust (CLT). Residents in a LECH are known as members. MAF and the SFCLT will work together to train residents to become cooperative housing members. Through participation in a LECH/CLT resident members are given the opportunity to collectively own their building. The CLT, as the non-profit organization, purchases the property which will then be developed into a LECH. The CLT retains ownership of the property and develops long-term lease agreements on the property with the resident members. The long term lease agreements usually last for 99 years and can subsequently be renewed. Through the lease agreement, member residents can deed their interest to their heirs. Having the CLT retain ownership of the land is one component of creating perpetual affordable housing for residents making substantially less than the area median income (AMI). With the CLT retaining ownership of the land, the cost of the land over the long term is removed from the building. Resident members understand and agree that the principal benefit of belonging to a LECH/CLT is a stable place to live. This stability is measured by security of tenure, privacy, and the right to remodel or redecorate. Resident members do not have to worry about being evicted or about have their monthly maintenance fee increase to an unaffordable amount.

For more information about Community Land Trusts see the recent article in the spring issue of Community Investments on the Federal Reserve Bank of San Francisco's website.