For those seeking a long-term, stable housing solution, but have concerns around affordability, there is a 54-year-old model of homeownership that may prove to be a sustainable and still financially equitable alternative that benefits the community at large: community land trusts.
“We were so stressed about how to get out the mess we were in at our old place … a lot of people I know are really struggling to find housing, to afford housing,” said Tsehainesh (Tati) Tsehaye who was able to purchase a “Pay it Forward” home with the Douglass Community Land Trust (CLT). “A lot of people that we know are facing a hardship with housing and I always tell them my testimony and the opportunities available with Douglass CLT.”
Having come out of the civil rights movement to support Black sharecroppers in the South, community land trusts were created as a viable answer for people in need of permanent and affordable housing, while maintaining a share of land that could be repurposed or reused for others in need for future years. The Douglass Community Land Trust based in Washington, D.C., in addition to the more than 250 other community land trusts across the U.S., builds off of that legacy.
“There’s a real element of racial justice, economic equity, racial equity, and financial equity, but it also includes the levers of decision making and control,” said Ginger Rumph, Executive Director of Douglass Community Land Trust. “At the core, this is about making sure people living in those homes can thrive going forward. This is about permanent affordability, collective ownership and shared stewardship.”
How It Works
The community land trust model aims to make permanent housing affordable, stabilize the overall price of homes in neighborhoods, develop ownership opportunities, encourage resident and community leadership, while a nonprofit organization—the community trust— retains ownership of the land. The homebuyer purchases the home directly from the trust, becoming the owner of the building/property, while the land is still owned by the trust. Equity is still earned by the homeowner, while a portion is additionally earned by the trust. The home can still be included in the owner’s estate and passed down, but if it is to ever be sold, it is sold back to the trust.
The Douglass Community Land Trust operates several properties in the District, including Skyland Terrace and Deanwood’s Net Zero homes. It recently advertised a $950,000 home in Brookland for $410,000. It was sold to the trust under its “Pay it Forward” homeownership program using a $600,000 subsidy to ensure affordability to applicants.
“A white family came to us and said ‘we know when we sell our home, D.C. natives, Black and Brown will not be able to afford it,’ and they sold it for significantly less [to us],” said Rumph adding that some home sellers do not want to contribute to the displacement of native District residents and in turn, sell their home slightly below cost as their contribution to reparations.
She added that if the industry continues to sell homes at the going market rate, no one will be able to afford a home.
“What it does is give people an entry point into the housing market,” said Vaughn Perry, Director of Equity and Sustainability for Douglass Charitable Land Trust. “People look at wealth creation as ‘what I can get back if I ever sell my home.’ We like to expand the definition of wealth creation. At the end of it, you’re still able to walk away with a percentage of appreciation.”
Another benefit to participating in a community land trust is that residents and community members are elected as board members to hold corporate control, making decisions about bylaws and properties.
Meche Martinez joined the Douglass Community Land Trust board of directors and when her term ended, she successfully applied almost two years ago to become Engagement & Capacity Building Manager for the Trust.
“Part of what drew me to this is that selling real estate in D.C. is tough,” she said. “Working with so many buyers who are qualified, doing all the right things who can’t find housing is discouraging as the person helping them. They all have the same story: they want to stay in the city they love, but they can’t.”
For more information, go to douglassclt.org.