How the Community Land Trust Model Works

The community land trust model separates the cost of the land from the cost of the home, which helps reduce the purchase price and protect affordability for future buyers.

In a CLT:

  • You own the home. The house is yours, just like any other home you would purchase with a mortgage.

  • The land is held by a nonprofit trust. The trust owns the land beneath the home to ensure long-term affordability.

  • You lease the land long-term. Homeowners sign a long-term, renewable ground lease that provides security and property rights.

Front Step’s model keeps homes permanently off the speculative market while still allowing homeowners to build equity and gain housing stability.

What Happens When a CLT Home Is Sold?

When a CLT home is resold:

  • The homeowner receives the equity they have built, including mortgage paydown and a portion of market appreciation.

  • The resale price is limited by a clear formula, ensuring the home remains within reach for future income-qualified buyers.

  • The trust helps connect the seller with a new homeowner.

This approach balances individual wealth-building with long-term community benefit.

How can I apply for an income qualified home?

Complete the screening form available through Front Step CLT’s Resources for Homebuyers. Start today to ensure you’re ready when the application period for homes opens in February.

Do CLT homes qualify for financing?

They do! Choose your own lender or check out Front Step’s approved lender list, which includes project partners First Security Bank. Lenders on Front Step’s list are familiar with the community land trust model.

Why purchase a CLT home?

A Community Land Trust makes it possible to buy a home at a lower price, build equity over time, and still ensure that the home stays within reach for the next buyer. It is a long-term solution to affordability.

What a CLT Is — and Is Not

A CLT is:

  • A proven national model for sustainable homeownership

  • Designed for long-term owner-occupancy

  • Compatible with conventional mortgage financing

  • Focused on stability, not speculation

A CLT is not:

  • A rental program

  • A short-term subsidy

  • A loss of homeownership rights

Why Ravara Uses a CLT Model

Ravara includes both market-rate and permanently attainable homes. The CLT model ensures that the attainable homes remain within reach not just for today’s buyers, but for future Missoula residents as well.

By combining private ownership with nonprofit stewardship, the CLT model supports:

  • Long-term housing stability

  • Predictable resale outcomes

  • A sustainable mixed-income neighborhood