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House OKs community land‑trust pilot for class‑one cities to preserve long‑term affordable ownership
Summary
The House passed HB 404 to enable a city‑organized nonprofit community land trust that would keep land in trust and lease ground to low‑ and moderate‑income families under long ground leases and resale formulas designed to preserve affordability and build equity.
The House approved HB 404 to authorize a municipally organized nonprofit community land trust for class‑one cities. Supporters described the measure as a permanent affordability tool that separates ownership of land from ownership of structures so families can purchase homes at lower cost while the trust retains long‑term stewardship of the land.
Representative Rafferty described how the model works: the nonprofit acquires the land and grants a long‑term ground lease (often 99 years) to families that own the home; a resale formula keeps the home affordable for future buyers while allowing homeowners to capture limited equity. "One investment in affordability with permanent impact," he said on the floor.
The committee substitute and a floor amendment clarified revenue treatment and tightened prohibitions on political activity by trust board members to address constitutional and revenue‑office concerns. The bill requires annual independent audits, public reporting, and limits that no director be a current elected official; appointments are split between the municipal governing body, mayor, and other authorities with specified professional experience.
The House passed the bill as substituted and amended; sponsors emphasized that the trust is intended to leverage private and federal resources, reduce dependence on recurring subsidy, and protect affordability across multiple sales generations of a given home.
