Frequently Asked Questions
- CLTs are classified as tax-exempt and non-profits who receive 501(c)(3) designation from the IRS.
- CLTs are focused on the continuous active acquisition of land and development, not on one single project located on one single parcel of land. CLTs are committed to this goal to work on expanding the supply of affordable housing under the CLT's stewardship
- The CLT operates within the targeting boundaries of its locale (in our case that is Jefferson and Clallam Counties). Any adult who resides in the targeted local is able to become a voting member of the CLT following membership guidelines.
- CLTs are usually run by a board of directors whose members include three groups of stakeholders: residents or leaseholders, people who reside within its targeted community but do not live on its land, and lastly the broader public interest. This third group is made up of government officials, funders, housing agencies, and social service providers. Organization bylaws may designate each of these groups a specific and equal number of seats, and they may be elected separately by their constituent groups.
- CLTs offer dual ownership of land and resources. It’s intended that land be owned by the trust forever in perpetuity. Any building already located on the land or later constructed on the land can be held by the CLT or sold off to an individual homeowner, a cooperative housing corporation, a nonprofit developer of rental housing, or some other nonprofit, governmental, or for-profit entity
- The CLT does not disappear once a building is sold. As owner of the underlying land and as owner of an option to repurchase any buildings located on its land, the CLT has an abiding interest in what happens to the structures and to the people who occupy them. The ground lease requires owner-occupancy and responsible use of the premises. Should buildings become a hazard, the ground lease gives the CLT the right to step in and force repairs. Should property owners default on their mortgages, the ground lease gives the CLT the right to step in and cure the default, forestalling foreclosure. The CLT remains a party to the deal, safeguarding the structural integrity of the buildings and the residential security of the occupants.
- The CLT retains an option to repurchase any residential (or commercial) structures on its land if their owners ever choose to sell. The resale price is set by a formula contained in the ground lease that is designed to give present homeowners a fair return on their investment but giving future homebuyers fair access to housing at an affordable price. By design and by intent, the CLT is committed to preserving the affordability of housing (and other structures), one owner after another, one generation after another, in perpetuity.
- Although CLTs intend never to resell their land, they can provide for the exclusive use of their land by the owners of any buildings located thereon. Exclusive use of parcels of land can be conveyed to individual homeowners or to the owners of other types of residential or commercial structures by long-term ground leases. The two-party contract between the landowner (the CLT) and a building's owner protects the owner's interests in security, privacy, legacy, and equity and enforces the CLT's interests in preserving the appropriate use, the structural integrity and the continuing affordability of any buildings on its land.
Jefferson County: 2017 Median Income for a Household of 4
|Household Size||1 PERSON||2||3||4|
|80% of Median||$35,700||$48,800||$45,900||$55,050|
Clallam County: 2017 Median Income for a Household of 4
|Household Size||1 PERSON||2||3||4|
|80% of Median||$34,900||$39,900||$44,900||$49,850|