Key strategy to fix housing #4
Work with Councils to establish and support Community Land Trusts
There are a huge array of benefits from establishing and resourcing Community Land Trusts (CLTs) across Aotearoa, New Zealand. CLTs are a proven and successful model for retaining housing affordability in the various places where they exist internationally. In many ways they are similar to Aotearoa’s home grown Papakāinga.
How do they work?
Land is collectively held and operated by a community-operated, not-for-profit entity. Representatives in CLT management are usually community organisations, residents, investors, and local officials. This form of ownership offers a key yet untapped solution to our nation’s housing catastrophe.
Community Land Trusts keep land, and therefore housing affordable. Here in Aotearoa NZ we consider CLTs as a form of collective housing. CLT’s combined with housing cooperatives make up the Forever Affordable Homes method.
Collective housing which includes CLT’s and Papakāinga involve occupants in decision making, are intentionally designed to create community and share some amenities/resources. For more on collective housing and this emerging sector check out housing fix #1 in this series.
For a brief overview of how CLT’s work when used as a stand alone model check out this short video. Source: National CLT Network United Kingdom
CLTs work by:
Offering secure affordable housing, contrasting with private renting
Operating as an entity that securely holds land off the speculative market forever
Preventing capital price rises of land which contribute to housing unaffordability
Using a governance approach which involves the residents and surrounding community
Allowing for a variety of ways that buildings can be owned and managed including that the CLT owns the buildings and rents them
Reflecting a number of existing ‘housing trusts’ already operating in Aotearoa, with the exception being the governance structure
Having the ability to recycle subsidies/investment to enable scale
Leveraging an array of funding including from philanthropic sources and impact investors. It can include grants from community funders for establishment and operation
CLTs in Auckland
Some representatives of The Housing Innovation Society (THIS) presented to Auckland Councillors in late 2020, advocating for a Tāmaki Makaurau based CLT. Auckland City Council states it is taking an “intervene and lead” approach to housing. Through the Auckland Plan 2050, direction 3, Council intends to “shift to a housing system that ensures a secure and affordable home for all.”
It does not appear that Auckland Council is considering establishing a Community Land Trust. There is much Auckland Council could learn from the CLT established for the Waikato region by Hamilton City Council. Housing affordability some have stated has hit catastrophic levels in Tāmaki Makaurau.
Auckland City Council, like many Councils, sells ‘surplus to requirements’ land for a one time payment. Aucklander’s lack a representative entity which holds land for the public good, protecting it forever. Surplus Council owned land is most commonly sold off to private developers to make a minimum of 20% private profit. This issue was highlighted in the Council controlled organisational review instigated following the most recent Council elections. The review concluded that a clearer mandate was needed which provided clarity on financial compared to social returns. A property strategy is presumed to be underway to provide some direction.
Gentrification prevention
When urban regeneration occurs through investment to upgrade facilities and amenities, land prices nearby increase too. Following on from that, house prices and rents also rise. By keeping land ownership in the community and removing it from the speculative property market, CLTs can act as an effective anti-gentrification tool.
CLT facts
There are over 540 worldwide
They were born out of the Civil rights movement in the United States
In some cities where they have operated for some time, they are the largest land owner
Aotearoa NZ has one CLT, in the Waikato
Key things the CLT needs to be successful
Community leadership and representation
A pipeline of land on which it can continue to build affordable housing (we have written extensively about why Aotearoa needs to introduce a proven policy lever to enable this)
Operational funding to allow it to conduct due diligence into potential developments, initially from government
A structure which enables it to leverage private funding (like we are seeing in the growing build to rent sector)
If you also want to see a CLT established in Tāmaki Makaurau:
Ask Chloe Swarbrick as the elected representative of Central Auckland what she is doing to progress this successful and proven way of delivering affordable housing
Approach Auckland Council mayoral candidates about what they will do if elected to genuinely take an intervene and lead approach to affordable housing. Will they back and appropriately finance a CLT for Auckland? There are currently 6 candidates for the October Council election
Ask Nicola Willis MP as the Shadow housing minister what she would do on this issue if elected next year
