Delray Beach Community Land Trust

What is the Delray Beach Community Land Trust (DBCLT)?

DBCLT is a private not-for-profit organization created to own land for the benefit of the Delray Beach community. DBCLT will provide and preserve permanently affordable housing on this land.

How does the DBCLT benefit the community?

Rising land and housing costs and a loss of affordable units have limited housing options for many people who live or work in Delray Beach. These trends have threatened the City's tradition of inclusiveness. It is difficult for many local businesses to hire and retain employees. In addition, workers making long commutes add to traffic congestion. Escalating land prices have also increased the number of residential tear-downs, changing the character of many city neighborhoods.

By holding land for the benefit of the community, DBCLT counters increasing housing costs that are driven by rapidly appreciating land values. In addition, by focusing on preserving existing housing stock DBCLT helps preserve the character of existing neighborhoods. Finally, through the resale restrictions, DBCLT maximizes the cost-effectiveness of the public and private investment used to make land trust homes affordable to the first buyer, providing a fair return to the homeowner while ensuring continued affordability for succeeding buyers.

How did DBCLT get started?

DBCLT is an outgrowth of the process begun in the late 1990s to create the City of Delray Beach's Downtown Master Plan. The Master Plan housing goals emphasize the City's commitment to cultural and economic diversity, diversity of housing stock and costs, and to providing affordable housing in neighborhoods throughout the community ("development without displacement"). In the many meetings that occurred during the master planning process, residents expressed increasing concern about the lack of affordable housing and the need for new strategies to implement the City's housing goals. In 2000, the City, the CRA and other key community stakeholders commissioned the SW/NW Neighborhood Redevelopment Plan to develop strategies to improve housing, economic development, and general livability conditions in the City's core neighborhoods. Creation of a community land trust was a key recommendation of the SW/NW Neighborhood Redevelopment plan adopted by the City Commission.                                                    

Properties can include a variety of housing, such as single- family homes, duplexes, town homes, condominium units, small multi-unit buildings, as well as undeveloped land. DBCLT's initial focus will be on acquiring build able land and existing attached and detached single-family dwellings. Properties will be located on scattered sites throughout Delray Beach.

How does DBCLT home ownership compare with other home ownership?                             

DBCLT homeowners enjoy most of the benefits of traditional homeownership, but in exchange for buying the home at an affordable price there are some differences:

What is the process for reselling the home?

When a homeowner is ready to sell, the home must be sold to DBCLT or an income qualified buyer at a formula price that gives owners a fair return on their investment, while keeping the homes affordable for future buyers.

Under the formula, the owner will receive a portion of the appreciation in the market value of the property (the home and the land) during the period of ownership. The resale price is based on the cumulative appreciation of median incomes in Palm Beach County, during the period that the owner has owned the home.

How do property taxes work on CLT properties?

DBCLT homeowners pay all the taxes associated with their property, based on the resell value of the property. As it is for all homeowners, the interest portion of mortgage payments is tax deductible from federal income tax. For homeowners who itemize federal income taxes, property taxes are also tax deductible.

Who will live in DBCLT homes?

DBCLT will give priority to low- and moderate-income individuals and families who live or work in Delray Beach:

How can you help?

As an individual, a business, or an organization, you can choose to help DBCLT by:
• Making a financial contribution

• Donating office equipment and supplies

• Contributing professional services

• Donating property or sell for below appraised value

• Volunteering