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July 23, 2001
ICE Preserves Affordable Housing
by Anne Moore Odell
The Institute for Community Economics (ICE) works with groups around the country to create and
support community land trusts, organizations that ensure a long-term supply of affordable housing.
SocialFunds.com --
When escalating real estate markets start driving low-income people away from purchasing homes,
where can concerned community members go for help? One option is the Institute for Community Economics (ICE), a non-profit that is
working to support and expand a national network of community land trusts (CLTs). A CLT is a
private non-profit organization that holds land for the long term good of the community, giving
people at lower income levels access to affordable housing.
 ICE supports CLTs with technical assistance, a
revolving loan fund and advocacy. Started in 1967, Springfield, Massachusetts-based ICE now
empowers more than 110 CLT organizations across the country.
"Conservation or
agricultural land trusts are created to protect bio-diversity," explained Sarah Page, Executive
Director of ICE. "Community land trusts are created to protect economic and cultural diversity by
providing affordable housing so that people are not excluded from gentrified communities."
Because the needs in rural and urban communities are different, CLTs are tailored site-to-site
to best fit the community's needs. CLTs may focus on single family houses, rental property, and
spaces for community organizations.
"A CLT removes land from the speculative market to
create permanently affordable housing," said Page. CLTs can acquire land with housing already on it
or vacant land to be developed. The land is owned by the land trust, buildings on the land are
owned by others. The land is leased to the building owners in long-term agreements.
The
lease fees are usually monthly. Building owners, who tend to be financially vulnerable, can
sometimes derive benefits from the fee in the form of mortgage payment support.
When the
owners of the buildings are ready to move on, the home can be sold back to the CLT or to another
low-income family using a resale formula the CLT creates to keep the homes affordable. Owners are
required to live on-site, helping address the problems of dis-investment and absentee ownership so
typical of low-income neighborhoods. Homeowners are able to build equity and gain the tax breaks of
home ownership, and more importantly, gain pride and help create positive neighborhoods.
Residents, people who use CLT land and other interested community members can serve on the
boards that govern CLTs. This diversity works to balance the needs of the residents with the needs
of the larger community.
From the beginning steps of creating a new CLT to continued
support and national advocacy, ICE provides valuable assistance.
"Our staff and
consultants travel all over offering support," said Page. "We have a team that is spread all over
the country." ICE also offers publications, videos and other supporting materials to CLTs as well
as legal and financial advice.
"With our new office in Washington D.C., we are able to
talk with members of Congress and give CLTs a presence there," continued Page. "We have also
testified in front of the Millennium Housing Commission, talking about the role CLTs can play and
what policies ICE supports."
ICE's revolving loan fund (RLF), created in 1979, has to date
loaned more than $38 million to CLTs and other non-profits that create affordable housing. These
monies go toward land purchase and the construction and renovation of housing and other capital
needs.
ICE has been a frontrunner in promoting community investing. Within guidelines,
investors in the fund set the term and rate of interest for their investments. The RLF today is
more than $13 million and to date has had zero loss of capital to investors.
"We
encourage people to have low returns because then we can offer lower rates of interest on our
loans," said Page. "Our investors have been very mindful and generous to advance the causes of
CLTs."
ICE has pioneered the CLT
movement, making connections between local groups and state and federal governments. For many
low-income people with dreams of home ownership, ICE helps provide a solution.
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