New York State currently has over 25 community land trusts, the third-largest number of CLTs in the country. Organized as a direct response to speculation, displacement, and a scarcity of affordable housing, Community Land Trusts (CLTs) can help empower and stabilize communities by including residents in the decision-making process, and can play an important role in preserving affordable housing and promoting wealth-building in low-income communities.
According to Grounded Solutions Network, CLTs are “nonprofit organizations governed by a board of CLT residents, community residents and public representatives that provide lasting community assets and shared equity homeownership opportunities for families and communities.” However, in New York, CLTs exist in multiple forms and have varying approaches towards providing affordable housing to the community.
Enterprise’s History of CLT Support in New York
Enterprise is committed to equitable and community-driven development and has supported community ownership and shared equity models nationwide to promote affordable home preservation, community stabilization, and wealth building for low-income communities.
In 2017, Enterprise, in partnership with the New York State Office of the Attorney General, provided $3.5 million for capacity-building grants to support the formation and expansion of six CLTs throughout New York State, as well as a CLT Learning Exchange comprising nine community-based organizations (CBOs).
To further this work, in 2019, Enterprise and the New York State Attorney General expanded the support with an additional $8 million Community Land Trust Capacity Building Initiative. Through this initiative, Enterprise supported 11 CLTs across New York State to rehabilitate, revitalize, and acquire 123 properties consisting of 170 units.
Funding was vital to organizations, but their continued growth and sustainability require building organizational capacity.
Obstacles to Achieving the Mission
Robust community organizing is the backbone of many CLTs; however, few CLTs have deep affordable housing expertise. In addition, CLTs often lack the upfront resources and scale needed to navigate development – especially as CLTs typically aim to provide deep levels of affordability and focus on distressed properties, the most complex to adequately finance. As the market becomes increasingly competitive with limited housing supply and rising costs, developing and preserving affordable housing has become challenging for even more experienced affordable housing developers and providers.
Developing a foundational understanding of the housing development and operations process and engaging in strategic partnerships is key to begin tackling these challenges. CLTs familiar with development processes and housing operations are better positioned to enter viable partnerships and steward permanently affordable, resident-controlled housing in a challenging market.
The New York State CLT Training Series
To provide a baseline understanding of affordable housing development, finance, and operations Enterprise launched the New York State CLT Training Series in 2023 with support from the Blue-Sky Fund and M&T Bank. Thirteen CLTs across New York State took part in the year-long training program.
CLTs at various stages of organizational capacity each received 15 hours of technical assistance and 24 hours of training on topics such as joint ventures, property acquisition, and pre-development processes. Sessions were facilitated by experts from Enterprise, Ametrine Group, Burlington Associates, and Strada Ventures.
The training had four main goals:
- Strengthen leadership, volunteer, or staff knowledge on affordable housing finance and development across a spectrum of housing typologies
- Understand the basics of real estate acquisition, including financial modeling, negotiation, physical assessment, and cost estimating
- Strengthen knowledge of ongoing housing operations and how to evaluate joint venture opportunities
- Build relationships with other CLTs across New York State
Real Results
During the well-received program, CLTs achieved multiple milestones, including securing properties, applying for 501(c)3 status, creating an MOU with a developer, and releasing an RFP for a development consultant. The participating CLTs also leveraged the experiences and relationships of peers across geographies and gained expertise and guidance from affordable housing and state agency leaders who served as guest speakers.
“Sessions opened up a window for CLTs that aren’t aware of what they need,” said Pamela Herrera of Western Queens CLT.
Prior to the training, Trillium CLT had been operating as a working group of county residents exploring the idea of a CLT. Over the course of the training, the CLT successfully obtained 501(c)3 status, conducted a feasibility study of potential project sites, and received a $75,000 pre-development grant from the state.
Bronx CLT drew on the training material to develop an MOU with a developer. They said the training was helpful in their day-to-day operations, including staff development. They created a resource guide consisting of all the training material from each session to help onboard new staff.
Partnering is Key for Long-Term Impact
While the training provided participants with knowledge and a network of peers and experts, CLTs need ongoing technical assistance and funding to build organizational capacity and achieve long-term outcomes. On average, it takes CLTs seven years to develop their first unit of rental housing and 13 years to develop a homeownership project from the time of organizational establishment. Furthermore, a CLT’s first housing developments typically do not fund its operations as it must achieve economies of scale to generate sufficient revenue.
For CLTs to reach impact within their communities, they must continue to be supported through deep TA and funding to reach a sustainable level of operations. The level of investment required to support CLTs in the start-up phase is especially significant – and a worthy investment in their long-term success.
For resources on affordable housing preservation for small and medium multifamily properties, please visit our Preservation NEXT Toolkit.