What Is a CLT?

Consider this: What if there was a way to make homes affordable—and keep them affordable forever?
There is.

One of SBGC’s primary objectives is to identify land opportunities and place them into a Community Land Trust (CLT) under 99-year ground leases, ensuring long-term housing affordability across generations. CLTs aren’t just a concept—they are SBGC’s core strategy for making permanent attainable housing a reality right here in our community.

So, What Exactly Is a CLT?

A Community Land Trust is a nonprofit organization that owns and stewards land for the public good, while allowing individuals to purchase or rent the homes built on that land. By separating the ownership of the land from the ownership of the home, CLTs reduce the overall cost of housing—without sacrificing stability, quality, or the ability for families to build equity.

How It Works

  • The CLT owns the land permanently.
    This land is never sold and remains dedicated to community benefit.
  • Homeowners buy the home, not the land.
    They sign a long-term (typically 99-year), inheritable, renewable ground lease with the CLT.
  • Affordability is preserved over time.
    When a homeowner chooses to sell, a fixed resale formula limits the maximum sale price.
    This ensures the home stays affordable for the next family—and the next, and the next.
  • CLTs must meet strict State and HUD requirements and must be properly registered as a nonprofit entity.

The result is a shared-equity model that blends the benefits of homeownership—stability, wealth-building, and pride—with long-term affordability enforced through responsible stewardship.

Why Does This Matter Here?

In small rural communities like ours—where seasonal tourism, rising land values, and limited inventory are pricing out workers—CLTs offer a balanced, sustainable, and community-driven solution.

A Community Land Trust:

  • keeps homes affordable permanently
  • protects local neighborhoods from speculative or short-term investment pressures
  • allows essential workers to live near the jobs they support
  • helps families stay rooted in the communities they serve
  • ensures that public and philanthropic dollars create evergreen housing, not one-time units

CLTs are already proving successful in Northern Michigan, including Frankfort and here in Leelanau County. These trusts have helped local families with modest incomes buy homes, build meaningful equity, and remain part of their communities—while safeguarding those homes from becoming unaffordable in the future.

The Bottom Line

A Community Land Trust is not just a tool—it’s a commitment to ensuring that the people who sustain our towns can afford to call them home. Through SBGC’s leadership and community collaboration, we can create a lasting inventory of attainable housing that strengthens our workforce, our schools, our local businesses, and our shared future.