Affordable Obtainable Housing – Bondi Community Land Trust
SMH Business Day reports that in Bondi median house prices are are running at well over $1 million, and units at more than $500,000. Housing is not affordable or obtainable for many Australians, BUT…
Schemes in the US similar to the new Waratah Community Land Trust (CLT) Association in Bondi have halved the cost of buying a home.
What IS A Community Land Trust?
A CLT sits mid-way between social housing, rentals and the private property market. It is
“a nonprofit, community-based corporation committed to the permanent stewardship of land and the permanent affordability of any housing located upon its land.
Land acquired by a CLT is never resold. It is retained by the CLT, held in trust for the community.”
The Trust owns the land in perpetuity and members buy only the dwelling on it, dramatically reducing their mortgages. Owners pay a nominal lease for the land and may later sell the dwelling to other trust members so they can get equity back from the investment.
A lease agreement between the occupier and the trust spells out maintenance responsibilities and the value of the property over time.
It appears the biggest obstacle to getting CLTs up and running is acquiring suitable properties.
About Waratah CLT
Private citizens are driving this CLT project and will introduce the new concept to the Sydney market.
A director of the Sydney Credit Union, Mark Swivel, who is featured on the promotional video, says the model lines up well with the values of the mutual sector and could be a partial solution to the housing affordability crisis.
A similar organisation started recently in Castlemaine, Victoria, with membership fees of $20 a year, and has received property bequests in wills.
How To Acquire land In Sydney?
Waratah hopes to receive bequests, unused property on Crown land or other investments from governments and councils, and private finance from philanthropists and corporate foundations.
Trust chairwoman, Liz Page, hopes to get properties under the trust’s stewardship by year’s end. Dr Louise Crabtree, of the Urban Research Centre at the University of Western Sydney, says
”It’s a fiscally conservative and socially progressive model that appeals to everyone..
The model aims to bridge the gap between affordable rentals, community housing and market rate ownership. We’re trying to create more rungs on the housing tenure ladder.”
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PWF first heard of CLTs through Vic Hunter of FISH, who is thinking of using the land trust model for Indigenous communities of the Kimberley.
Thanks for the lead Vic and good luck to all having a go!
6 Comments
The Community Lands Trust model is a smart direction for housing in Sydney, to reduce the amount of community money tied up in mortgages so to reduce vulnerability to market fluctuation. This enables people to put money into other areas of their lives, including the quality of their children’s education and small business development with the security of home ownership.
Is there an example of a CLT model where the members actually rent their accommodation from the Trust which owns everything?
Such an arrangement would benefit many people who are at the time in their life that owning property is not necessary or desirable.
In response to John’s question, yes the CLT model does accommodate rentals. In fact, in circumstances where CLT property owners ran the risk of loan default on mortgages, some CLTs have been able to purchase the property back from the owner, and the owner was then able to revert to a rental model. This provides security to both the home owner and the bank.
Thanks for providing this info Brett
Excellent! Congrats – may Waratah housing community prosper!
Community Land Trusts are more than just affordable housing, although that is their primary and most notable aim. But they have the potential to put community decision-making back into everyday lives. Who knows where that might lead?
Well done to Waratah, and wish I had known of the Maleny meeting – I was there all of June!
In Tasmania, I have had a disappointing response from the Housing Minister ( a Green!), when all that is needed is a minor legislative change to allow community title, as in NSW. But the work goes on, and perhaps Ms O’Connor will see the light. Leo Foley 0427 286486