What is a Community Land Trust?
A community-controlled nonprofit which seeks to to maintain the affordability of land and property in perpetuity by acquiring land and removing it from the speculative real estate market. CLTs steward the buildings or other assets on that land to ensure that they continue to serve the community and support our housing justice movement.A community land trust is usually a private non-profit corporation that intends to be democratically controlled through a tripartite board of directors that is represented of residents and a broader neighborhood. Community land trusts are a tool for organized working class collectives to build power and stabilize their communities.
Bvclt Formation History
After the Rodney King uprisings in 1992 much of this neighborhood was burned to the ground. At that time, a non-profit called CRSP (Cooperative Resources and Services Project) was in the process of forming a plan to construct a brand new eco-village in North East Los Angeles. After seeing the uprisings and disinvestment in the area, CRSP decided to purchase an existing building to invest in this community. CRSP acquired the large 40 unit building in 1996 for $500,000 all cash. It was half vacant at the time of purchase. The second 8 unit building was purchased in 1999 for $315,000, all cash. CRSP purchased the 4-plex (140 Bimini) across the street in 2011 for $650,000 and the former auto body shop at the corner in 2016 for 1,139,000.
These buildings were purchased WITHOUT bank loans. Capital came from a program CRSP created called ELF Loans. (Ecological Revolving Fund.) Friends, family and associates were asked to contribute to a fund which would be invested in cooperative development projects. Investors to the fund were paid back with interest (2%-3%), earned through rental income. Over the next 10 years, CRSP worked to develop an intentional community focused on ecological living. In 2010, residents of the buildings, with involvement from CRSP, formed the Beverly Vermont Community Land Trust (named after the local train station). Residents also created a formal housing cooperative called Urban Soil Tierra Urbana (USTU), registering it as a 501(c)3 affordable housing project. The newly formed housing cooperative, USTU, purchased the buildings from CRSP in 2010. As in traditional land trust style, the separation of land and improvements provides a deep layer of security from the speculative housing market. Any party interested in purchasing the property for financial gain would have to get approval from both the land trust and the housing coop, both of which have to get approval from both the land trust and the housing coop, both of which have affordable housing mandates woven into their legal structure.
The result has been a close-knit community in which people can feel they are able to offer support and receive support openly from their neighbors. The combination of relief provided by affordable rents and the empowerment through self governance allows for more experimentation and collaboration among residents and the greater LA community. Some projects that have come out of the USTU spaces are:
- LA Bicycle Kitchen: Free bike repair & community space
- Cafecito Organico: organic, fair-trade coffee shop
- CicLAvia: Bike advocacy space that shuts down streets regularly to get angelinos on their bikes out into the city
- Re:Ciclos: 501c3 that creates
- BVCLT (housing justice organization that focuses on anti-displacement, power building with organized tenants, taking buildings off the speculative market for permanent affordability, and co-op development)
Beverly-Vermont Community Land Trust is the housing justice wing of our collective ecosystem in Koreatown. BVCLT connects with tenants who are organizing in their buildings, acquires the buildings with public subsidy, and then provides them with guidance and resources to create a housing cooperative and collective governance. BVCLT operates in coalition spaces to ensure that they are part of a regional strategy. BVCLT is a founding member of the Los Angeles Community Land Trust Coalition (LACLT Coalition). BVCLT is also an active member of ACT-LA, CA-CLT Coalition, and Right to the City Alliance.
collective ownership or stewardship on BVclt land
Unlike traditional affordable housing developments, BVCLT is not in the business of maintaining affordable rental housing as the status quo. BVCLT’s mission to acquire tenant organized buildings to move from collective resistance to collective ownership and governance. This provides community members to not see the only way to obtain stability in their lives through individual home or buisiness ownership, which is unattainable for most people. This mission to transition control and ownership of the buildings on BVCLT land to community members provides agency back to working class communities who have little agency or control when it comes to being priced out of their neighborhoods.
Permanently Affordable Rental Housing Units
While BVCLT’s goal is to empower communities by providing them collective access to the pathway to own and govern their buildings, that does not mean BVCLT makes that decision for tenants. Housing cooperative development and governance is a time consuming process that not all tenants are interested in prioritizing.
Traditional affordable housing providers obtain funding that mainly provides affordable rental housing for up to 55 years. At that point, they can transition those units or buildings to market rate. At the minimum, BVCLT maintains permanently affordable housing in perpetuity with no end date. So tenants on BVCLT have the option, of their own choosing, if they want to remain affordable housing rentals.
Limited Equity Housing Cooperatives
Not individually owned by the residents. Residents own a share of the entire project, with the right to occupy their individual unit. Also known as “co-ops”, each cooperative qualifies for a loan, based on the income of the “rents” within the property. One advantage of this arrangement is that people do not have to qualify for a loan to buy into an LEHC, which is one of the biggest stumbling blocks for many very low-income families. Down payments are also typically very low for LEHCs. With training and support from BVCLT, residents will own and manage the property, passing the cost savings on to themselves. Co-op owners will be able to build savings toward individual homeownership or local business development. Typically, people who will become members of BVCLT co-ops are those with incomes between 40% and 65% of the area’s median income.
Community Gardens
Koreatown is known as one the densest neighborhoods in the United States, and also one the most park/ green space poor neighborhood in Los Angeles. Due to this, BVCLT members have organized to take over stewardship of open green spaces that are vacant or owned by LAUSD or city offices. This can be transformed to sites that would serve the broader community, such as: community gardens, affordable business space, community centers, nonprofit offices, or simply wilderness/open space conservation.
