Some moderate-income home buyers could get boost in James City
Goal of proposed Community Land Trust is to help residents making at or below 80% of Area Median Income to buy a home
James City County is likely to establish a Community Land Trust (CLT) meant to create permanent affordable housing, with efforts focused on households earning up to 80% of area median income (AMI), or about $80,000 per year for a family of four. A presentation recently given to the Board of Supervisors outlined key aspects of the income guidelines as well as steps that have been taken to create the CLT. Last year, board members approved continuing work on the CLT after reviewing feasibility study which concluded the model would be “highly feasible” and well suited to preserve long-term housing affordability, while allowing homeowners to build equity.
The county’s planned development on Clarks Lane, called The Moores, will likely be the primary initial asset for the trust, as preliminary plans call for transferring 47 already-approved affordable units into the CLT. The community’s development will be structured in two stages, starting with 8 units slated for construction by the spring of 2026, with the remaining 37 units coming online thereafter. Additionally, staff have identified the Moses Lane Area as another potential site for the land trust model, as the county is currently focused on road improvements and home rehabilitations in the neighborhood and sees potential to create further residential lots for the trust.
How the CLT might work
A Community Land Trust is a nonprofit organization designed to ensure long-term housing affordability. The basic mechanism is by separating the ownership of the house from the ownership of the land it sits on. Based on an example provided in the feasibility study, the process may work like this:
Making initial purchase affordable
Example: A qualified buyer wants to purchase a home that has a market value of $350,000. This price is out of reach for them.
CLT Solution: The Community Land Trust steps in. The buyer purchases only the house itself for a subsidized price of $200,000. The CLT retains ownership of the land underneath the house and leases it to the homeowner through a long-term, inheritable ground lease (often for 99 years).
Result: Because the buyer isn’t paying for the land, the purchase price is significantly lower, making homeownership accessible.
Building wealth through ownership
Over the next 10 years, the homeowner makes monthly mortgage payments. A portion of each payment goes toward paying down the principal loan amount.
Principal Paid Down: Over this decade, the homeowner pays down roughly $30,000 of their mortgage principal. This is equity they have earned through their payments.
Sharing the proceeds from resale
Perhaps after 10 years, the homeowner decides to sell and the home’s unrestricted market value has risen from $350,000 to $550,000—a total increase in value of $200,000.
The “Shared Equity” Formula: Unlike a traditional sale where the owner keeps 100% of the profit, a CLT ground lease has a resale formula. This formula dictates how the increased value is shared between the seller and the trust.
Calculating the Seller’s Share: In this example, the seller is entitled to keep 25% of that appreciation = $50,000
Equity for the Seller: When selling, the homeowner walks away with the equity they built through payments plus their share of the home’s increased value — $30,000 (Principal Paid) + $50,000 (Share of Appreciation) = $80,000 Total Equity
Ensuring lasting affordability
The example CLT model stipulates that the remaining 75% of the market appreciation ($150,000) stays with the house, effectively acting as a permanent subsidy.
The New Sale Price: Because the majority of the increased market value stays in the trust, the home is not sold for its full market value of $550,000. Instead, it resells for a restricted price of $250,000.
Affordable Outcome: The home remains affordable for the next income-qualified buyer without requiring any new public funding or subsidies. The initial investment continues to serve the community, creating a permanent stock of affordable housing.
CLT timeframe
The county has stated a goal of establishing the CLT before the planned development on Clark Lane is built. The Board of Supervisors was presented with the following timeline:
January - April 2026 • Draft application for CLT board members, launch website and outreach, open and close application portal
May - June 2026 • Forward applications to officials, notify selected candidates
July 2026 • File Articles of Incorporation • First Board of Directors meeting and adopt bylaws
July - December 2026 • File for 501(c)(3) status • Train board, design home ownership program, draft ground lease and policies • Build partnerships and pursue grants
Should the CLT move forward, the income thresholds would be embedded in the organization’s governing documents, requiring formal amendments for any future changes. The proposal also calls for pursuing Community Housing Development Organization (CHDO) designation through the Virginia Department of Housing and Community Development. CHDO status provides access to federal HUD set-aside funds and carries its own income and compliance requirements.
The writer used AI tools and these sources:
Video - James City County Board of Supervisors Meeting, September 23, 2025
Agenda - James City County Board of Supervisors Meeting, September 23, 2025
Agenda - James City County Board of Supervisors Retreat, February 12, 2026
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That's a great idea, particularly as the area is quite expensive in which to buy a house.