Why Community Land Trusts are a Solution to Homeownership
Race and affordability touch at the heart of the housing crisis in Houston. The Fair Housing Act protects buyers and renters from seller or landlord discrimination. In recognition of fair housing month, it’s worth exploring community land trusts. The community land trust model is a byproduct of the civil rights movement. Over the last fifty years, communities have implemented the model to prevent gentrification. It is also a tool for preserving historic spaces. In some of Houston’s rapidly gentrifying communities, the Houston Community Land Trust (HCLT) is the last line of defense.
The HCLT is an equitable option for income-limited residents to achieve home ownership. The Houston model has the potential to set a national precedent. It would be the first large-scale implementation in the US. While the community land trust model is not new, the HCLT may be the first introduction for many people in the Houston area. The HCLT makes affordable home ownership achievable for low- to moderate- income households in Houston. It is an opportunity for those individuals and families to get in a brand new home for less than a rental payment. Persons earning less than $40,000 who have been pre-approved for a mortgage of 80k - 100k could buy an HCLT home. The HCLT is able to keep costs affordable for several reasons:
1.The City of Houston Housing and Community Development Department provides the land at a discounted rate. This subsidy in turn allows builders to pass on savings to consumers and build at an affordable rate.
2.Homeowners own the home and lease the land which means property taxes are lower and stable.
3.When homeowners are ready to sell, it is at a restricted rate. The home must go to another limited-income household, ensuring continued affordability.
Rather than paying rent, homeowners are building equity they can use in the future. That equity can the down payment or closing costs on their first conventional home. There is a myth that Houston has been affordable until recently. The fact is, many of the communities currently facing displacement, disrepair, blight and unavailability of affordable housing stock were facing the same issues over forty years ago. The documentary Invisible City: Houston’s Housing Crisis, filmed in 1979, highlights the plight of low- and moderate-income communities. Much like today, the documentary shows the housing crisis primarily affects minorities. It focused on Third Ward, Fourth Ward, Fifth Ward, Sunnyside and Acres Homes. Each of these communities remain vulnerable. In the documentary Ken Austin, Mayor’s Office Planning Coordinator says, “There is a great shortage of rental units which is of course the need in a low-income group because they can’t afford the down payments or constant upkeep for housing to own.” Decades later, his assertion remains true. The homes that are available are not the right type, price and location for the population that needs housing the most.
To be sure, for almost fifty years, community land trusts have provided affordable housing, prevented displacement, and preserved historic spaces. Affordability is a complex issue and there is a need for a variety of affordable options. The Houston Community Land Trust is a promising one. It empowers communities through access to perpetually affordable homes. Every Houstonian has the right an affordable home that is safe in a community where they can thrive. For a lot of hard working people this idea is a dream; here is an option that makes it achievable. To learn more about community land trusts or to get started with the application process visit: www.houstonclt.org
