Understanding Housing Lingo: Community Land Trusts & Resident Owned Communities
By Matthew Havniear, Deputy Director
What Are Community Land Trusts (CLTs)?
Community Land Trusts (CLTs) emerged in the U.S. during the Civil Rights Movement of the 1960s as a way for underserved communities to establish and sustain consistent, affordable housing. Inspired by Vinoba Bhave’s cooperative land ownership model in India, civil rights leaders created the first CLT, New Communities Inc., in Georgia in 1969. This innovative model separated land ownership from homeownership, holding land “in trust” for the community’s benefit. Removing land costs from home prices protects the land from market pressures and maintains affordability for current and future generations.
Today, CLTs are typically nonprofit organizations governed by community members to ensure the land is managed in alignment with local priorities. Over the years, the model has spread across the U.S. and globally, adapting to various urban and rural housing challenges while remaining focused on treating land as a shared resource that benefits the entire community.
How Community Land Trusts (CLTs) Work
CLTs retain ownership of the land but allow residents, often first-time homebuyers, to purchase homes or buildings on the property, often at prices 20-50% below market rates. Residents lease the land through a long-term, renewable ground lease, usually lasting 99 years. When homeowners sell, the resale price is capped to ensure affordability for the next buyer, while the seller retains a pre-defined portion of equity gains from the original agreement. This model enables families to build wealth through equity, unlike renting, while maintaining long-term housing affordability for the community.
What Are Resident-Owned Communities (ROCs)?
Resident-owned communities (ROCs) are another innovative land management strategy designed to increase housing affordability and stability. In this model, residents collectively own and manage the land where their homes are located. This cooperative approach is most prevalent in manufactured home parks, where residents often face rising rents or land sales risks.
ROCs gained momentum in the 1980s, one notable milestone was when residents purchased and created the Meredith Center Cooperative, countering exploitative practices by private landowners. This movement led to organizations like ROC USA, which supports resident groups in acquiring and managing their communities. Today, resident owned communities promote shared ownership and management, strengthening community bonds while ensuring lasting affordability and stability.
Local CLT & ROC Examples
Proud Ground: Building Affordable Homeownership
Proud Ground is the largest Community Land Trust in the Pacific Northwest and has helped 650 families achieve affordable homeownership while managing over 500 properties. With median home prices of $250,000, significantly below market rates, Proud Ground provides permanent affordability while enabling families to build equity.
Proud Ground’s latest project in Medford, New Spirit Village, is a shining example of a local CLT, made possible through the generous support and advocacy of the Thalden Foundation, along with contributions from Outlier Construction, ACCESS, and other dedicated local partners. This project focuses on creating sustainable housing for survivors of the 2020 Labor Day Fires in Southern Oregon.
CASA of Oregon: Converting Mobile Home Parks to Resident-Owned Communities
CASA of Oregon (CASA), a nonprofit organization, is dedicated to improving the lives of low-income families through affordable housing and economic opportunities. CASA collaborates with community groups to provide resources and programs that strengthen families financially.
One standout project for CASA, in partnership with Coalición Fortaleza and ACCESS, is the Talent Mobile Estates in Talent, Oregon. This project empowers residents to collectively purchase and manage the mobile home park, transforming it into a resident-owned cooperative. CASA and Coalición Fortaleza guide and enable residents to make community ownership a reality, ensuring long-term affordability and protection against displacement.
CLTs & ROCs Pave Pathways to Housing Affordability
Community Land Trusts (CLTs) and Resident-Owned Communities (ROCs) are proven solutions to the housing affordability crisis. Harvard’s Joint Center for Housing Studies and NeighborWorks America studies have shown that CLTs preserve affordability for generations, with resale prices averaging 25-50% below market rates while allowing homeowners to build equity. Research from ROC USA shows that resident-owned communities experience significantly lower rates of displacement and improved financial stability compared to traditional mobile home parks. By prioritizing long-term affordability, stability, and community control, these models enable people and families to achieve financial security while keeping housing accessible for future generations. The success of local projects like New Spirit Village and Talent Mobile Estates has shown how these approaches can spur the development of strong, resilient communities. As we look to address housing challenges, CLTs and ROCs offer a tested and successful path forward.