The crisis has been started in the U.S. mortgage markets in 2007-2008 and it exposes the vulnerabilities of housing markets particularly for low-income households people. The government has efforts to create affordable and mixed-income housing which will minimize poverty traps and governments have also used public-private partnerships (PPPs) to provide leverage the private sector’s financial resources and expertise and resultantly these efforts have succeeded in achieving economies of scale and scope and PPPs will lead to the privatization of government responsibilities.  It has been growing in North America, however, a broader multi-sectoral approach is required and also involved for profit and nonprofit sectors and community to determine jointly goals and decision making these partnerships deliver housing, provide governance, and build the relationships needed for sustainability.

Community land trusts, which began in the state of Georgia in the late 1960s, are locally based nonprofit organizations that acquire and hold land for the benefit of communities. The intention is to provide land that can be perpetually available for affordable housing. By holding the land for community interests, CLTs separate the value of the land (usually the most expensive component) from the buildings developed on the land, effectively removing the land from the real estate market. A typical CLT is registered as a nonprofit organization, formed at the grassroots level and controlled by its members through a board of directors that comprises residents and community representatives. The CLT retains ownership of the land, grants the rights to use that land through long-term leases, and ensures perpetual affordability by setting limits to resale values and/or controlling rents.