Community Land Trust

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A Community Land Trust (CLT) is governed by multiple applicable Texas laws. The most applicable law is Texas Local Government Code Chapter 373B: Community Land Trusts. 

As most CLTs are Nonprofits, a CLT is also subject to the Texas Business Organizations Code, Title 2, Chapter 22: Nonprofits.

Under applicable Texas Property Codes, a CLT typically:

• Owns the land
• Leases land for long-term, often 99 years to homeowners
• Impose resale restrictions
• Can create Conveyances, such as Deeds and Restrictive Covenants
• Enforce other rules and limitations

A CLT in Texas is also governed by Texas Property Tax Code 11.182 – Community Housing Development Organizations (CHDO).

In Texas, in order to seek tax credits, a CLT must:

• Be a 501(c)(3)
• Provide “affordable housing”
• Meet income and use restrictions

Some CLTs may also fall under Texas Property Tax Code 11.181 (Charitable Organizations) and 11.1825 (Organizations Constructing or Rehabilitating Low-Income Housing: Property Not Previously Exempt)

Under current Texas law, it may also be possible for a CLT to leverage public (taxpayer) funding sources through Texas Local Government Code such as Chapter 380 – Miscellaneous Provisions Relating to Municipal Planning and Development.

There may be other applicable Texas laws that govern CLTs and there are multiple federal laws that also govern CLTs and CHDOs.