Barry County commissioners hear presentation on community land trust to preserve long-term affordable homeownership

Barry County commissioners on Aug. 26 heard a presentation on community land trusts — nonprofit entities that retain ownership of land while allowing families to buy homes on that land at a reduced price — as a tool to preserve long-term affordable homeownership.

Bonnie Geddes, president and CEO of the Barry Community Foundation, said donors who pay to build or rehabilitate affordable homes want those homes to remain affordable beyond the first sale. "This is one tool in the toolbox for that to happen," Geddes told the board.

Denny Sturdevant, a housing consultant and former CEO of Dwelling Place of Grand Rapids, described the mechanics and policy tradeoffs. "The land is owned by the Land Trust. The home is owned by the buyer," Sturdevant said. He said homes in CLT models are commonly sold at about a 25% discount to remove the land cost and help buyers qualify for conventional mortgages.

Sturdevant said homeowners typically share a portion of future appreciation — commonly about 25% of appreciation under many CLT formulas — so the home can be resold at an affordable price to the next qualified buyer. "In return for this benefit, they agreed to share equity," he said.

Presenters told commissioners CLTs can be funded from philanthropy, tax increment financing (TIF) reimbursement and other sources; they cited examples in Michigan where CLTs and municipal land banks have been paired to lower development costs. Sturdevant noted that recent changes in Michigan law have made some CLT practices easier, including appraisal mechanics and the use of Brownfield/TIF tools.

Commissioners asked about eligibility and tax treatment. Geddes and Sturdevant said income limits vary by CLT but commonly target households around 80% to 120% of area median income; some projects with deeper subsidy can reach 60% of AMI. On taxation, Sturdevant said state law currently treats land and home ad valorem for property tax purposes and the homestead exemption does not automatically apply to the land portion, meaning homeowners generally pay taxes on both the land and the house. He added some CLTs charge a nominal monthly ground-lease fee of $50 to $100 to cover stewardship and to identify households that may need financial counseling.

Speakers warned CLT development requires time, coordination and a mix of funding. Sturdevant said a typical CLT needs sizable scale — he suggested roughly 100 units — to be sustainable, and urged patience and careful planning. Geddes said the Community Foundation would work with experienced partners such as Dwelling Place and local housing groups rather than administering the CLT alone.

The presentation followed earlier county conversation on a Delton development where officials are exploring CLT elements for part of a larger project. Commissioners expressed general interest and asked for follow-up materials and links to state and national CLT resources.

The board did not take formal action on a CLT at the meeting; presenters offered to provide more detailed information and next steps if the board wishes to proceed.