Community land trusts; good idea or bad idea?
I was doing some research on land trusts and came across the definition of a community land trust. From the Grand Forks Community Land Trust website we see that a CLT is defined as "community-based 501c3 nonprofits whose intent is to provide perpetually affordable housing options. Their purpose is to provide access to land and housing to people who are otherwise denied access; to increase long-term community control of neighborhood resources; to empower residents through involvement and participation in the organization; and to preserve the affordability of housing permanently."
They do this by purchasing land and leasing it out to lower to medium income earners. Because buyers are not buying the land the purchase of the home is more affordable therefore being a solution to the affordable housing problem growing in our country. One catch I see is that upon resale a seller is restricted as to how much they can sell their home for. In other words, it has to still remain affordable to low-mid income earners. According to CLTNetwork a buyer can buy a home but "In return, the homeowner agrees to sell the home at resale-restricted and affordable price to another lower income homebuyer in the future."
What are your thoughts on a CLT and has anyone had experience with them? They sound like a good idea in the short term but I have troulbe imaging how this would help people as the markets dramatically change over time. Is there any possibility of getting someone to come in a flip a property for profit in one of these communities or will the CLT developer be doing that? I'd love to hear thoughts and opinions!