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Community Land Trusts: Empty, Moderate, and Full-bodied


Community land trusts,

  • mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"”>How seriously is “community” taken? Community land trusts can be simply a legal form of holding title, used for tax and financing purposes, but in daily use essentially a management company, negotiating with utilities, contractors, maintenance staff, etc. Or it can be seen as a part of an effort for form and maintain a communal level of social interaction, involving not only collective democratic decision-making but a sharing of activities, of information, of social responsibilities, of political involvement. It can affirmatively work on positive relationships with its outside neighboring community, having not only neighborhood representatives on it boards but helping integrate its residents in its community, more widely defined, sharing facilities, activities, information, as circumstances suggest. Likewise, it can affirmatively look to achieve and make use of a diversity of residents, including both levels of recognition and of assimilation comfortable to each.
  • mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"”>How, and how clearly, is the constituency of the community land trust understood? A community land trust has control over who its members are, can have processes similar to those of cooperatives in interviewing potential new members. But there are general principles that must be established, and they will influence not only who is in the community land trust but what its relations with its outside community and government will be. Specifically, income levels and household composition can be defined as criteria.
  • mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"”> If the principles of social justice are followed, it also becomes more likely that the community land trust will operate as a full-bodied trust.
  • mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"”>How does the community land trust see its political role? Every community land trust except an exclusionary one of the well-to-do faces the reality that many to whom it would like to be open cannot afford even the non-profit real costs of decent housing. The need may go from an immediate need for help even with basic costs or special needs to an on-going concern about rising costs or changed incomes limiting what a household can afford.  That inevitably means a concern with governmental subsidies, levels of taxation, utility costs, building codes, public services, public facilities. But the problems community land trusts  face are shared by a large part of the population as a whole. If the community land trust sees itself as part of a broader movement to achieve social justice in the provision of housing, perhaps as part of a broad right to housing movement, it will be more and more a full-bodied community land trust both in its inception and its ongoing daily activities.
  • A note on the ideological and economic aspects of community land trusts:

    The idea of community land trusts resonates with an old theme in economics: that of land as a common natural resource, one not the product of human efforts, and therefore not to be appropriated by individuals for their private use, but to be shared among all. Community land trusts can be seen as an implementation of that view, at least on a small scale: no individual has the legal right to dispose of his or her interest in a community land trust for personal gain. Yet, theoretically, the ability to sell an interest in a building built on land in a community land trust at a price for that building fixed in a private market will take into account that that interest is made more attractive by its ground lease. Thus a likely profit can in fact ensue to the seller of a community land trust unit, amounting to an ability to make a private profit from a natural resource,. The market value of a building or unit in a community land trust building is technically the price of a commodity.. The land itself may be decommodified, but the right to use it is valuable, and could be realized by a sale of what is on the land and benefits a private owner from its common ownership. The land is decommodified, but not necessarily the building on it, to which the value of participation in the community land trust accrues.

    What makes the typical community land trust radical is not the separation of land from building and its character as natural resource, but rather the restrictions that the classic community land trust, moderate to full-bodied, imposes on those leasing the right to occupy from the trust. Those restrictions typically regulate the price at which a housing unit in a community land trust can be sold. In these community land trusts , the leases to occupant members either prohibits the occupant from selling the unit except at a price established by the board of the trust, or gives the trust itself the right to buy at a fixed and limited price if the unit is put up for sale. . In this way community land trusts operate as would a limited equity co-op; the separation out of land ownership is simply another way of controlling collectively the price of units in it, as well usually as the characteristics of new buyer occupants. It is the restrictions in the permitted sales of units in a community land trust which make it an ideologically radical idea, and the terms of that restriction set the extent of the radicalism. If limited to an original price, originally set not aiming at a profit, and usually increasing only to the extent of the occupants own investment of money or labor in the unit, that makes it radical, for it effectively takes the unit out of the housing market and eliminates its use as a provider of private profit. A resident of a classic community land trust has virtually all the rights of a home owner, except the right to sell at a profit.  It turns housing into a set of use values, rather than of exchange values.

  • mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"”>Stress the “community” in community land trusts when presenting them. (Point 2
  • mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"”>Be clear and up front where you stand on the importance of social justice in the spectrum between moderate and full-bodied community land trust.  (point 3)
  • mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"”>Be politically active in coalition formation with other social justice oriented organizations and actors, and join with them both in obtaining the necessary support and subsidies for community land trusts  and in supporting other housing rights organizations program proposals for governmental action in the housing field, particularly on financing and rent regulation and affirmative non-discrimination. (Point 4.)
  • mso-fareast-font-family:"Times New Roman";mso-bidi-font-family:"Times New Roman"”>Be up front about community land trusts’ impacts on wealth accumulation (minimal) and its other economic advantages: security of tenure and investment.  (Note on ideological and economic aspects.)
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    font-family:"Verdana","sans-serif";mso-fareast-font-family:"Times New Roman";
    mso-bidi-font-family:"Times New Roman"”> A community land trust is a legal form in which the ownership of land is held in the form of a trust and separated from the ownership of any structures that may be on it, which are privately (often in the form of a co-op or mutual housing association) built, occupied, and managed, subject to the term of a land lease from the trust. The trust is typically controlled by a board in which the actual users of the buildings on it are the primary members, together usually with representatives of the neighboring community and/or relevant government representatives. The leaseold interest with the users of the building have can be sold  subject to the provisions of the lease from the trust, which typically limits its resale price and must approve the buyer. An excellent fact sheet,  which also contains further useful links,.is at
    font-family:"Verdana","sans-serif";mso-fareast-font-family:"Times New Roman";
    mso-bidi-font-family:"Times New Roman"”> The myth that home ownership per se is a reliable way to accumulate needs to be dispelled. Home owners accumulate wealth only through two aspects of home ownership: one is savings, the other is speculation. The savings are essentially the forced setting aside of money to pay off a loan, the mortgage. Alternate investments of savings might do even better, and be subject to less risk. The other source of additional wealth creation from home ownership lies in the possibility of capturing the increase in the value of the house, which is fundamentally of the location on it is built, for the physical building itself depreciates. Again, that’s a speculative investment, and not always a safe one, as today’s economy shows. And see the historical experience recounted in Sclar, Elliott, Matthew Edel. and Daniel Luria. 1984. Shaky Palaces: Home ownership and Social Mobility in Boston’s Suburbanization.  New York Columbia University Press 1984.
     

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