SPRINGFIELD —More people may soon have the opportunity to become homeowners through community land trusts, thanks to a new initiative from State Senator Graciela Guzmán that passed the State Senate on Thursday.

“Community land trusts are a people-first plan driven by communal power that help give everyday folks the opportunity to become homeowners and build generational wealth,” said Guzmán (D-Chicago). “It’s important for us to make this model more commonplace, and continue to build on its ingenuity, and this legislation will help us on that path.”

Community land trusts, or CLTs, are community-based, nonprofit organizations that manage a parcel of land to preserve long-term affordability of homes created through subsidies. CLTs sell homes on the land they manage at affordable prices to a qualifying homebuyer. Oftentimes, they place limits on the incomes of people looking to purchase homes to ensure affordable housing is going to people in the most financial need. Driven by constituents, for constituents, this model aims to keep folks in the community that may otherwise be priced out by corporate rent and mortgage rates. 

Senate Bill 1261 would further incentivize prospective homebuyers to invest in CLTs by making the Illinois Housing Development Authority (IHDA) Access Forgivable, Access Deferred, and Access Repayable mortgage programs available to people seeking property owned by a community land trust. These programs offer more flexibility for buyers to pay their mortgage, which may encourage people to invest in property with CLTs. The measure would also continue the Community Last Trust Task Force to continue to build a pathway for more CLTs across the state. 

“It is extremely difficult for working families to afford to purchase a home with the rising costs of living, leaving many feeling unstable with their living situation,” said Guzmán. “CLTs give folks a chance at the American dream of homeownership, and to invest in their community. I believe housing is a human right, and community land trusts are a great tool to ensure folks have access to stable housing in the long-term.”

“The Here to Stay Community Land Trust is incredibly proud of the work of our initial Community Land Trust Taskforce, which highlighted the effectiveness of CLTs in creating affordable homeownership opportunities and demonstrated the impact additional public funding and resources would have on creating more affordable homes in Illinois,” said Kristen Horne, the Executive Director of Here To Stay CLT. “Here to Stay is grateful to IHDA for facilitating this task force and for amending its regulations to allow CLTs to access its lending products and downpayment assistant grant opportunities for our buyers. This support has helped us  build a portfolio of 20 homes, both single family and multi unit. With the dramatic increases in gentrification and loss of affordability leading to the displacement of long-term residents, now is the time to expand on our successes, and continue our mission to retain low and moderate income households through affordable home ownership and communal ownership of the land.”

Senate Bill 1261 passed the Senate on Thursday. It now goes to the House of Representatives for further consideration.