Long-term housing generally refers to home ownership, whether it be individual homes or subdivisions, or multi-unit properties (e.g., duplexes, condominiums, etc.). Availability of reasonably priced housing can be important to ensuring the affordability in communities citywide. The City of Austin strategically provides resources to help in the construction and preservation of such housing, as outlined below:
Community Land Trust (CLT) (Single Family/Townhomes)
Community Land Trusts allow buyers to purchase a home, but lease the land for a small monthly fee. By taking the cost of the land out of the real estate transaction, land trust homes are more affordable than houses on the open real estate market. The benefit is access to quality housing for low- and moderate-income families and keeping housing affordable for future buyers by controlling the resale price of the houses on CLT land through a ground lease and resale formula. CLT developers are required to enter to an Austin Housing Finance Corporation, pre-approved, ground lease with the affordable buyer.
Long-Term Affordability Restrictions (Condo)
Developers who build a condominium with a long-term affordability requirement, must enter into an Austin Housing Finance Corporation, pre-approved, land use restriction that is recorded against the property. A second land use restriction will be entered into with the affordable buyer of the condo at closing. By restricting the original sales price and restricting the resale value, these homes are more affordable than houses on the open real estate market.
Community Land Trust (CLT) Designations
The purpose of a CLT designation is to make certain properties owned by non-profit organizations eligible for exemption only from City of Austin ad valorem taxes.
The Texas Local Government Code, Chapter 373B, and Section 11.1827 of the Texas Property Tax Code authorizes local governments to designate non-profit organizations as CLTs by ordinance. To qualify as a CLT, an organization must be a 501(c)(3) non-profit, created to acquire and hold land for the benefit of developing and preserving long-term affordable housing within the jurisdiction of the unit of local government. Organizations designated as CLTs must provide a copy of a City Ordinance designating them as a CLT to the Travis Central Appraisal District by July 1 each year in order to receive the exemption.
Applications for CLT Designations are only taken during the month of April.