Best Practice

Housing Trust Fund or Real Estate Investment Trust

Local jurisdictions can create a housing trust fund or real estate investment trust with funds from nonprofit organizations, community foundations, and local governments. These trusts provide alternative funding streams to be used in support of homeowners by dividing the ownership of the structure, land, and lease. This frees up some specific financial resources that can be used for maintenance and for ensuring long-term affordability.

Cost

Local jurisdictions implement the ordinance; nonprofit organizations, community foundations and local governments usually pool funds to create the trust. The cost of setting up the trust will depend on the size and needs of each community.

Timeframe

Implementation requires going through the local processes to change the ordinance, usually 6-12 months, plus an additional 18-24 months to create the fund.

Code

Collaboration / Partnerships, Government, Maintenance, New Development, Ownership

Challenge

Affordable Housing, Increase Homeownership

Practice Tool

Financing

Population

Homeowners

Setting

Urban and Rural