How It Works

How Does UCLT Provide Permanent Affordability?

UCLT balances the opportunity to achieve homeownership for working families that otherwise are priced out of the Utah real estate market with resale controls that ensure permanent affordability for subsequent homeowners.

Photo of smiling family
  1. UCLT acquires the land and maintains ownership of it permanently with prospective homeowners entering into a ninety-nine-year renewable lease of the land.
  2. UCLT provides below market opportunities for moderate income buyers and supports the new homeowner to maintain long-term homeownership. In return, the homeowner agrees to sell the home at a resale-restricted price according to the ground lease so another moderate income homebuyer will become a homeowner. Consequently, the homeowner is able to successfully own a home and build wealth from the investment, while UCLT is able to preserve the public/private investment in the affordable home permanently to help family after family.
  3. When the homeowner decides to sell the resale formula is used to determine the resale value. UCLT’s resale formula permits homeowners to realize 1.5% per year up to 25% of the appreciated value of the home.

How does the ground lease work?

UCLT retains ownership of the land via a ninety–nine year ground lease and transfers ownership of the home and other improvements to income–eligible working families. The ground lease is inheritable and renewable for an additional ninety–nine years and contains provisions that ensure that the home and other improvements are properly maintained and remain owner occupied. The ground lease also contains resale provisions that give UCLT a first right of refusal to buy the property and controls the resale price.

Utah Community Land Trust Will:

  • Provide long-term affordable home ownership opportunities
  • Enable the homeowner to realize a portion of the appreciation
  • Ensure affordability of workforce housing for future moderate income families
  • Guide and assist current residents to make sure they remain in their homes