Chicago Community Land Trust

Overview

The Chicago Community Land Trust, now known as the Chicago Housing Trust, is a nonprofit organization established to promote affordable housing in Chicago. It operates as a 501(c)(3) corporation, focusing on providing long-term affordability for housing units by leveraging city programs and policies.

Purpose

The primary goal of the Chicago Community Land Trust is to ensure that affordable housing units remain available at affordable prices, even when they are resold. This is achieved through the use of deed covenants and ground leases, which require any resale to be at a price affordable for low- to moderate-income families.

History

The initiative to establish a citywide community land trust in Chicago began in 2004, with assistance from the U.S. Department of Housing and Urban Development (HUD). The city's Department of Housing led the process, engaging various stakeholders and conducting thorough consultations before launching the program.

Operations

The Chicago Housing Trust, formerly known as the Chicago Community Land Trust, offers several programs to facilitate homeownership among low- to moderate-income individuals while maintaining affordability. It accomplishes this by:

• Providing upfront subsidies to make homes affordable for initial buyers.
• Ensuring homes are resold at affordable prices under deed covenants or ground leases.
• Offering pre-purchase counseling and post-purchase support to homeowners.
• Implementing a monthly administrative fee to support program operations.

Benefits

The trust benefits both homeowners and the community by:

• Allowing homeowners to benefit from a fair return on their investment while ensuring affordability for future buyers.
• Preserving mixed-income neighborhoods and protecting residents from displacement.
• Reducing property taxes by assessing them based on affordable resale prices rather than market values.

Governance

The Chicago Housing Trust is supported by the City of Chicago's Department of Planning and Development, although it is structured as a separate entity. Governance includes oversight from a board of directors appointed by the mayor, subject to approval by the City Council. The entity operates in conjunction with city policies to standardize practices across Chicago.

Impact

As of previous reports, the trust has successfully preserved affordability in numerous units while maintaining a low foreclosure rate. It continues to educate prospective buyers and support existing homeowners through various educational and maintenance programs.