Community land trusts expand efforts to address NC housing gap

Summary

North Carolina land trusts formed a coalition to expand affordable housing and seek greater public, private support for the community-owned land model.

Why this matters

As housing costs rise, land trusts offer a model for preserving affordability. This coalition aims to scale the approach across North Carolina communities.

Community land trusts across North Carolina have formed a statewide coalition to expand affordable housing and advocate for more support at public and private levels.

The North Carolina Community Land Trust Coalition was launched by a group of land trusts aiming to share best practices, influence housing policy, and increase public awareness of the model. Community land trusts retain ownership of land while selling homes on that land, removing land costs from purchase prices and placing resale restrictions to maintain long-term affordability.

More than 300 community land trusts operate nationwide, including about a dozen in North Carolina. The state’s trusts have developed 394 homeownership units and 398 affordable rentals, serving households with an average income of 63% of area median income, according to the coalition.

Kimberly Sanchez, executive director of the Chapel Hill-based Community Home Trust, said funding and land acquisition remain significant challenges, especially for new organizations.

“You have to acquire land, which is not cheap, and you have to hold it forever,” Sanchez said. “So you have to have some level of consistent operational funding just to make sure you can keep the inventory.”

The Community Home Trust, created over 30 years ago, is one of the oldest in the state. It followed the 1987 founding of Durham Community Land Trustees, Inc. Sanchez said the Chapel Hill trust now holds nearly 300 properties, many acquired through the town’s inclusionary housing policy encouraging developers to sell units to the trust.

Durham and Chapel Hill, though close geographically, approached the model differently. Durham initially prioritized rentals, while Chapel Hill focused on homeownership. Both now offer a mix of housing types.

The coalition expects to include 12 to 14 trust organizations statewide, with some groups still forming. One new member is the Watauga Community Housing Trust, which recently completed its first home, a refurbished one-bedroom house in Boone. The volunteer-run organization was formed in response to rising home prices in the tourist-heavy region.

Ben Loomis, a member of the Watauga trust, said the group secured the property through a supporter and raised funds to rebuild the home. The need for affordable housing grew after flooding from Tropical Storm Helene damaged or destroyed thousands of homes in western North Carolina, including 140 units condemned in Boone.

“We see the goal as to be able to provide resources to other new community land trusts,” Loomis said, “but also to work on a higher level and do lobbying and large-scale partnerships.”

Sherry Taylor, executive director of Durham Community Land Trustees, said the coalition seeks to ensure that long-term affordable housing is seen as a statewide priority. She said while a state law offers property tax exemptions for affordable housing held by qualifying nonprofits, more support is needed.

“We wanted to first inform lawmakers that this is a model that has worked all over the country and has worked in North Carolina,” Taylor said. “Finding new ways for community land trusts to increase production of affordable housing would be the next step.”

A 2023 study commissioned by NC REALTORS®, the NC Chamber, and the NC Home Builders Association projected that the state will need more than 764,000 new housing units over five years. The NC Housing Coalition reported that 48% of renters in the state are cost-burdened, as are 19% of homeowners.

Sanchez emphasized that while all land trusts follow the same model, they function differently based on local conditions, funding sources, and community priorities.

“We focus on different things, the way that we’re funded is different, the way we interact with our community is different,” she said.

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