Property Ownership

A Mississippi property owner wants to establish a 'community land trust' (CLT). A CLT creates affordable housing by:

ADonating all properties to the government
BA nonprofit owning the land and leasing it long-term to homeowners who own only the structure, keeping housing costs low through perpetual affordability covenants✓ Correct
CLimiting property taxes for low-income owners
DRequiring banks to provide below-market mortgages

Explanation

Community land trusts separate land ownership (held by the nonprofit CLT in perpetuity) from structure ownership (held by homebuyers). Long-term ground leases (99 years) allow homebuyers to purchase at below-market prices with resale restrictions that maintain affordability for future buyers. CLTs create permanent affordable homeownership opportunities.

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