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Writer's pictureRyan Meagher

Are Community Land Trusts the Solution to Canada's Affordable Housing Crisis?

Affordable housing is a pressing issue in many Canadian cities, especially large cities like Toronto. With rising costs everywhere you look it is making it increasingly difficult for many residents to find suitable and affordable homes. In response to this challenge, innovative solutions like Community Land Trusts (CLTs) are emerging as vital tools for fostering affordable housing and community resilience. In this blog article we are going explore what CLTs are, why they matter, and how they are making a difference in a large, unaffordable city like Toronto.

The Positive Benefits of Community Land Trusts

What Are Community Land Trusts?


Community Land Trusts are not a new concept, having been around since the 1990's in Canada when funding for social housing was sparse and communities had to step up to keep housing affordable in their neighbourhoods. Fast forward to today, there are over 40 CLTs operating in Canada from coast-to-coast, many of which have come into operation within the last decade.


At their core, Community Land Trusts are non-profit organizations that own and manage land on behalf of a community. The primary goal of a CLT is to ensure that land remains affordable and accessible for community needs, rather than being subject to market pressures. This is achieved through a model where the land is held in trust, while the buildings or developments on the land may be owned or managed by various entities, including non-profits, cooperatives, or individuals.


The CLT model separates land ownership from property ownership. This means that while individuals or organizations can own and develop buildings on the land, the land itself is owned and protected by the CLT. This separation helps to stabilize property values and ensure long-term affordability, as the land is not subject to speculative market forces.


CLT's are not just squarely focused on affordability though, but also are actively advocating for community development to prevent larger and potentially more devastating trends from emerging like gentrification.


Why Are CLTs Important for Affordable Housing?


  1. Preserving Affordability


    By owning the land, CLTs can prevent it from being sold to the highest bidder, which helps keep housing prices more stable and affordable. This is particularly crucial in high-demand urban areas where property values can rapidly escalate.


  2. Community Control


    CLTs are governed by community members, which means they reflect and serve the needs and desires of local residents. This community control ensures that development projects align with the community’s values and priorities, rather than being driven solely by profit.


  3. Long-Term Stability 


    CLTs provide a mechanism for long-term stability by protecting land from market volatility. This helps ensure that affordable housing and community spaces are preserved for future generations.


  4. Supporting Local Economies 


    By fostering affordable housing and community spaces, CLTs can contribute to the local economy, helping to support small businesses and create vibrant, sustainable neighborhoods.


Examples of Community Land Trusts in Toronto


Toronto has seen several successful Community Land Trusts emerge and flourish that are making a tangible difference in addressing the city’s housing crisis. Here are a few notable examples:


1. Kensington Market Community Land Trust


The Kensington Market Community Land Trust (KMCLT) is a non-profit organization dedicated to preserving the cultural and historical character of Toronto’s iconic Kensington Market neighborhood. By acquiring and holding land in trust, KMCLT aims to ensure that the area remains accessible and affordable to the diverse, creative communities that have historically defined it. The trust focuses on fostering local ownership and decision-making, providing a counterbalance to the pressures of gentrification and commercial development. Through collaborative efforts with residents, businesses, and stakeholders, KMCLT seeks to sustain Kensington Market’s vibrant, eclectic atmosphere and support its long-term social and cultural vitality.


The Future of Housing Alliance (FHA) is actively collaborating with KMCLT to evaluate one of their existing buildings to add additional affordable housing. Learn more about this collaboration by reaching out to us!


2. Circle Community LandTrust


Circle Community LandTrust was founded in 2017 to protect and invest in over 560 single-family homes scattered across east Toronto, East York, central Scarborough, Malvern, and more. These homes were transferred to Circle from their previous owner Toronto Community Housing Corporation in 2022 with the agreement that these homes – some of the last affordable family-sized rental homes in Toronto – would remain affordable for today’s Tenants and future generations.


3. The Parkdale Neighbourhood Land Trust


Parkdale, known for its diverse community and vibrant culture, has a strong advocate in the Parkdale Neighbourhood Land Trust (PNLT). The PNLT works to acquire and steward land for affordable housing, community facilities, and local businesses. By focusing on preserving and enhancing Parkdale’s unique character, the PNLT helps ensure that the neighborhood remains accessible and inclusive for all residents.


4. Toronto Chinatown Land Trust


The Toronto Chinatown Land Trust is an initiative aimed at preserving and empowering the Chinatown community in Toronto by addressing issues related to land ownership and development. Established to combat the pressures of gentrification and rising property values that threaten the neighborhood's cultural and economic vitality, the Trust focuses on acquiring and managing key properties within Chinatown. Its goal is to ensure that these spaces remain accessible and affordable for local businesses, cultural institutions, and residents. By securing land and providing long-term stability, the Toronto Chinatown Land Trust helps maintain the community's unique identity and supports its continued growth and resilience in the face of urban development challenges.


The Future of CLTs in Canada


Community Land Trusts represent a promising approach to tackling the affordable housing crisis by prioritizing community needs and long-term stability over short-term gains. As Canadian cities continue to grapple with rising housing costs and growing populations, CLTs offer a scalable model for creating sustainable, equitable, and vibrant communities at the grassroot level with local stakeholders. By supporting your local CLT and exploring similar models, cities and communities across Canada can work towards a future where affordable housing is not just an ideal, but a reality for all residents.


As we look ahead, it’s crucial for policymakers, community leaders, and residents to continue advocating for and investing in Community Land Trusts. Through collective effort and innovation, we can build communities that are not only affordable but also resilient, inclusive, and vibrant for generations to come.


How to Learn More about Community Land Trusts in Canada and Beyond


The below resources are a great starting point to learn about Community Land Trusts and how they are helping make an impact into the housing affordability discussion.



Want to Become Part of The Solution?


If you want to learn more about how to get involved with your local CLT, start your own, or learn more about how you can help accelerate the creation of affordable housing please reach out to us! We would be happy to have a conversation and guide you in the right direction.



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