Allied Community-Based Housing Developers
Introduction
The housing crisis continues to disproportionately affect extremely low-income (ELI) households, leaving many vulnerable to eviction and displacement. For decades, the reliance on profit-driven housing development has exacerbated this inequity, marginalizing communities that need affordable housing the most. Community-controlled housing, particularly through Community Land Trusts (CLTs), offers a transformative alternative by combining land ownership with rental, cooperative, or ownership housing models. By prioritizing housing affordability and security, CLTs challenge the market-driven paradigm. This document explores the principles, challenges, and successes of community-controlled housing, providing actionable insights for activists, developers, and policymakers.
The Housing Crisis and the Need for Community-Controlled Solutions
Across the United States, extremely low-income households face severe housing shortages. For every 100 ELI renter households, only 37 affordable and available units exist. This scarcity forces many families to spend over 50% of their income on housing, leaving little for other essentials. Black, Indigenous, and other communities of color are disproportionately affected, further entrenching systemic inequities.
Community-controlled housing, particularly through CLTs, addresses these challenges by keeping housing permanently affordable and ensuring tenant security. Unlike traditional affordable housing models, CLTs govern land democratically and focus on community needs rather than profit. Ground leases, resale restrictions, and the right of first purchase are key mechanisms used by CLTs to maintain affordability.
Overcoming Barriers in Housing Development and Housing Developers
Property Acquisition and Pre-Development
Acquiring property is often the first major hurdle for CLTs. Rising real estate prices, speculative markets, and tax lien complications can make acquisition difficult. Mobilizations like Philadelphia Housing Action and Oakland’s Measure KK program demonstrate how grassroots organizing can secure government support for property acquisition. Additionally, Tenant Opportunity to Purchase Acts (TOPA) and community-focused land banks offer legal and financial pathways for acquisition.
Pre-development involves extensive planning, cost estimation, and securing permits. This phase often requires collaboration with architects, engineers, and legal experts to create viable project proposals that attract public and private financing. Effective planning ensures sustainability over the long term, reducing the risk of unforeseen costs during later stages.
Construction and Rehabilitation
Construction and rehabilitation costs are significant, often requiring a mix of equity and debt. Public equity, such as grants or funding from housing trust funds, helps reduce the reliance on loans, making projects more affordable. For instance, Champlain Housing Trust successfully used public funds to convert a hotel into permanent housing without incurring debt.
Soft debt—loans with favorable terms—is another critical tool for CLTs. Programs like Oakland’s KK Bond fund offer flexible financing options that prioritize deeply affordable housing. However, even with these supports, construction projects must balance costs with affordability, ensuring that rents remain accessible to ELI households.
Operating Costs
Operating costs, including maintenance, utilities, property taxes, and debt repayment, pose ongoing challenges for CLTs. ELI tenants often cannot pay rents high enough to cover these expenses, necessitating subsidies or creative financing solutions. Tenant-based rental assistance, such as Housing Choice Vouchers, is a key federal program that offsets rent costs. However, community-controlled housing models prefer project-based vouchers to ensure long-term affordability tied to the property.
Direct operating subsidies from federal, state, or local programs also provide essential support. For example, Chicago’s Low-Income Housing Trust Fund offers rental assistance targeted to ELI households. Cross-subsidy models, where higher rents or commercial revenue subsidize affordable units, are another effective strategy, particularly in mixed-use developments.
Case Studies of Success of the Housing Developers
Several CLTs across the country illustrate the potential of community-controlled housing to achieve deep affordability:
- Oakland Community Land Trust: Through partnerships with tenant organizations and grassroots mobilizations, Oakland CLT has preserved multiple at-risk properties, converting them into permanently affordable housing.
- Champlain Housing Trust: This Vermont-based CLT has pioneered innovative financing models, such as using federal CARES funds to acquire and renovate properties for ELI tenants.
- East Harlem/El Barrio CLT: By leveraging a New York City program for acquiring tax-lien properties, this CLT converted vacant buildings into community-controlled housing.
Each case demonstrates how CLTs can navigate complex financing and regulatory environments to create sustainable, deeply affordable housing.
Policy Recommendations Regarding Housing Developers
To scale community-controlled housing, policymakers must prioritize funding and regulatory reforms that support CLTs. Key recommendations include:
- Expand Federal Vouchers and Subsidies: Increase tenant- and project-based rental assistance programs, linking them to community-controlled housing models.
- Invest in Public Equity: Allocate more resources to housing trust funds and bond programs that reduce debt burdens for affordable housing developers.
- Promote Land Access: Prioritize CLTs in land disposition policies, ensuring that vacant or tax-lien properties benefit communities rather than speculative developers.
- Encourage Cross-Subsidy Models: Develop incentives for mixed-use projects that integrate commercial and residential spaces to support affordability.
Conclusion
Community-controlled housing represents a bold and necessary step toward addressing the housing crisis for extremely low-income households. By prioritizing resident and community ownership, CLTs ensure permanent affordability and stability. While challenges in financing, development, and operation persist, the successes of existing CLTs offer a roadmap for future projects. With sustained advocacy, innovative policies, and collaborative efforts, community-controlled housing can transform the housing landscape, providing security and dignity for the nation’s most vulnerable populations.
For further reading:
Creating Community Controlled, Deeply Affordable Housing