Sometimes known as a Community Land Trust, a Community Housing Trust (CHT) is a community-based non-profit corporation that stewards land with the express purpose of providing affordable housing over the long term. 

CHTs are plentiful and varied. The U.S. alone has more than 200, and in Canada there are more than 20. While the model for a CHT is not chiseled in stone, what is resolute is its purpose, that of providing housing for low to moderate income households on a not-for-profit basis based on the needs of the community it serves and on available options.

CHTs typically provide non-profit rental housing, co-ops, and/or affordable ownership. Some have only one type. Some have all three.  As well as housing CHTs can provide amenities such as parkland and day cares. They can assist tenants or owners to obtain and remain in their housing and offer services such as building maintenance and long-term capital planning. They can raise funds by hiring their services and expertise outside the CHT. 

A CHT acquires land and/or buildings and brings them into the Trust. They can either build new, or renovate, or purchase an existing building. They will have administrative staff, but will be governed by a board where, typically, resident representatives sit alongside community and other members.  

To achieve long-term housing affordability, a CHT separates ownership of land from ownership of the housing. This helps to prevent market land price increases from negatively affecting the ability of the CHT to house its target population. The CHT will “own” the land either outright as freehold or through a lease from a municipality. The buildings will be owned by a co-op, a non-profit, or, in the case of affordable ownership, an owner. 

Let’s create a simple example. Let’s say there is a significant piece of undeveloped City-owned land in Vancouver. Let’s say the surrounding community would like to see this land developed for housing that is more affordable than the current market. To achieve this, they come together and brainstorm their vision, their target population, what challenges they need to meet, etc. They seek partners: development experts, funders, non-profit housing providers, champions in the community. Let’s say after community consultation they form a CHT, select a Board and present their vision to the City. Let’s say the City agrees and leases the land to the CHT for 99 years at a favourable price that allows the CHT to keep costs down and affordability up. 

By the end of the initial phase, working with its partners, let’s say the CHT’s portfolio contains two co-ops and two non-profit rentals. The CHT can now move on to other considerations, a community garden, building services, or an affordable ownership component. “Affordable ownership” differs from the strata ownership currently in place in FCS. The initial buyer purchases at a below market price. To ensure affordability her unit is fettered on title to ensure its resale is controlled by limits to earned equity. When she sells, the CHT will select a prospective qualified buyer from a waiting list and will handle the sale. It will use one of several methods for ensuring affordability. For, our example CHT, we will use the method is that the increase in equity obtained by the seller will only amount to what the seller paid for the unit plus CPI per year of ownership. The amount owed to the seller, therefore, is not dependent on the market and the new buyer purchases at a much more affordable cost. 

With its new housing units, our example CHT has provided the City with much needed accommodation for its workforce, for seniors, for the disabled, for whomever the CHT promoted as its target population. For at least 99 years, the CHT’s objective of providing affordable housing is not subject to land market or political forces. 

In our example the CHT has a specific geographic area, that imaginary parcel of city-owned land. Many CHTs operate within a defined neighbourhood. Others have a wider focus and are considered scattered-site trusts. One of these is the Community Land Trust of the Co-operative Housing Federation (CHF) of BC. This Trust now has 2600 homes in the province, largely in the Lower Mainland. In 2012 it was the successful bidder, along with partners, to develop four parcels of City-owned land in southeast Vancouver. The City leased the land to the Trust for 99 years and the housing is owned and operated by co-op and non-profit rental housing providers. There is an arrangement in place for the City to achieve equity during the lease and the aim is that higher priced rentals will help subsidize rents for those with lower incomes. The City has since earmarked seven additional development sites to the Trust. 

For further information:

CHFBC Community Land Trust https://www.chf.bc.ca/community-land-trust/

Canadian Network of Community Land Trusts http://www.communityland.ca/

Champlain Housing Trust, Burlington Vt. http://www.getahome.org/

http://imap.vic.gov.au/uploads/Strategy%20Documents/The%20Australian%20CLT%20Manual%2020130409.pdf