Acquiring Land

Municipal Land

In the US during the financial crisis of 2008 municipalities like Chicago, Irvine, Atlanta etc saw an affordability crisis for their citizens.  Their current practices of rent control and grants for home ownership were not effective in making lasting change and required a continual stream of money.  The land trust model held land in common for community benefit coupled with the cap on equity to keep if affordable proved to be a long term solution for a one time investment.

The US housing crisis saw many people evicted from their homes but the eviction rates and delinquencies for mortgages on land trust properties were negligible because the land trust educated and supported homeowners.

When people start to leave a city because of affordability issues the local government lose tax dollars, work force employees and negatively impact small businesses.

 

Why municipalities are interested in land trusts

3 reasons that municipal decision makers see this as a solution to their challenge of affordable housing: