Housing and Redevelopment Authority Meeting Date: April 21, 2026
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
Rice County Community Land Trust Presentation
Body
Action Requested:
No action request. HRA will hear a presentation by the newly established Rice County Community Land Trust.
Summary Report:
Laura Bock and Nort Johnson to present on the newly established Rice County Community Land Trust.
Background
A community land trust (CLT) is a nonprofit organization that acquires and holds land to support long-term community goals, most commonly the creation and preservation of affordable housing. The model is used nationally as a tool to maintain affordability over time in both strong and emerging housing markets.
How the Model Works
A CLT separates ownership of land from ownership of buildings:
• The CLT retains ownership of the land.
• The homeowner owns the structure and enters into a long-term ground lease (typically 99 years).
This structure reduces the initial purchase price by removing land cost from the transaction.
When a home is sold, the resale price is governed by a formula in the ground lease. This allows the homeowner to build limited equity while ensuring the home remains affordable for future buyers.
Key Features
• Permanent Affordability: Homes remain affordable across multiple ownership cycles.
• Stewardship: The CLT provides ongoing oversight, including resale management and homeowner support.
• Community Governance: CLTs are typically governed by a board representing residents, community members, and public interests.
Policy Considerations / Benefits
• Preserves affordability without requiring repeated public subsidy
• Expands access to homeownership for moderate- and lower-income households
• Stabilizes neighborhoods and reduces displacement pressures
• Aligns with long-term housing and equity goals
Tradeoffs
• Resale restrictions limit maximum equity gains for homeowners
• Requires initial investment (e.g., land, subsidy, or startup funding)
• Ongoing administration and stewardship are necessary
• Model may require additional education for buyers and lenders
Role of the City
Local governments commonly support CLTs through:
• Land contributions or discounted land sales
• Gap financing or subsidy for development
• Policy alignment with housing and comprehensive plans
• Support for organizational capacity (startup or operations)
Conclusion
A community land trust is a long-term housing tool designed to preserve affordability and community benefit. It can complement existing programs by ensuring that public investment in housing remains effective over time.
The following attachments are included:
Attachment 1 - Community Land Trusts Explained video
Attachment 2 - What is a Community Land Trust? 5 Things You Need to Know video
Attachment 3 - Rice County Community Land Trust Memo to HRA
Attachment 4 - First Consulting Agreement, September 19, 2025
Attachment 5 - Articles of Incorporation
Attachment 6 - Bylaws
Attachment 7 - Second Consulting Agreement, March 6, 2026
City Plans & Policies Relevance:
A community land trust (CLT) directly advances the City of Northfield’s housing goals by creating permanently affordable homeownership opportunities that align with both the Comprehensive Plan’s emphasis on equity, housing diversity, and wealth-building, and the Strategic Plan’s priority to increase housing availability. The Comprehensive Plan calls for “safe, stable housing in a wide variety of types, sizes, and ownership models” and specifically highlights the need to build pathways to homeownership and generational wealth while addressing affordability gaps and disparities. A CLT model meets these objectives by lowering the cost of entry into homeownership, preserving long-term affordability, and expanding access for households who would otherwise be priced out of the market. At the same time, the Strategic Plan prioritizes expanding both single-family and multi-family housing supply and implementing housing stabilization strategies. A CLT supports these efforts by adding units in a financially sustainable way, preserving affordability over time, and complementing public investments by ensuring long-term community benefit from housing development.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
N/A