Land Trusts and Community Land Trusts (CLTs)

Definition

A land trust is a nonprofit, formed under state law, that holds land or conservation easements to protect it; a community land trust (CLT) keeps land permanently and leases it so the homes or buildings on it stay affordable. Congress defined a CLT for federal housing programs as an organization that holds land in perpetuity for long-term ground leases, transfers the buildings to the lessees, and keeps an option to buy them back at a price that keeps them affordable.^[1]

Federal law

Formed under state law. No Act of Congress creates it; the federal laws below apply to it as described.

1. Housing and Community Development Act of 1992, Pub. L. 102-550, § 213, 106 Stat. 3672, 3757. Added the definition of "community land trust" to § 233 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. § 12773(f)), for housing education and organizational support. Official text: govinfo.gov, U.S. Government Publishing Office.
2. Act to extend certain temporary tax provisions (conservation contributions, 26 U.S.C. § 170(h)), Pub. L. 96-541, § 6, 94 Stat. 3204, 3206. Created the qualified conservation contribution deduction (26 U.S.C. § 170(h)) that governs tax treatment of conservation easements donated to land trusts; does not create land trusts. Official text: govinfo.gov, U.S. Government Publishing Office.