SPRINGFIELD —More people will soon have the opportunity to become homeowners through community land trusts, thanks to an initiative led by State Senator Graciela Guzmán that was signed into law on Friday.

“As the American dream of homeownership seems farther and farther away for many working Illinoisans, community land trusts have proven to be an effective solution for folks to purchase their first home and build generational wealth,” said Guzmán (D-Chicago). “I am strongly in favor of this people-first model to become more common throughout Illinois and our country, and believe this law will help them become more common.”

Community land trusts, or CLTs, are community-based, nonprofit organizations that manage a parcel of land to preserve long-term affordability of homes created through subsidies. CLTs sell homes on the land they manage at affordable prices to a qualifying homebuyer. Oftentimes, they place limits on the incomes of people looking to purchase homes to ensure affordable housing is going to people in the most financial need. Driven by constituents, for constituents, this model aims to keep folks in the community that may otherwise be priced out by corporate rent and mortgage rates.

Senate Bill 1261 further incentivizes prospective homebuyers to invest in CLTs by making the Illinois Housing Development Authority (IHDA) Access Forgivable, Access Deferred, and Access Repayable mortgage programs available to people seeking property owned by a community land trust. These programs offer more flexibility for buyers to pay their mortgage, which may encourage people to invest in property with CLTs. The measure also continues the Community Last Trust Task Force to continue to build a pathway for more CLTs across the state.

“My husband and I love being homeowners. We love having a home that we can pass down to our son

and daughters,” said Here to Stay CLT homeowner, Ludivina Resendiz. “We love the sense of security and stability! We love being able to walk to Mexican-owned stores, restaurants including La Michoacana, and I love rolling my carrito to Cermak Foods.”

“Community land trusts have the capability to offer affordable housing to folks who have been part of our neighborhoods for generations—we just need to make the method of purchasing property through them more accessible,” said Guzmán. “With this initiative, more people will be able to become homeowners through CLTs, creating generational wealth and stability that will aid them for years to come.”

Senate Bill 1261 was signed into law on Friday. It is effective immediately.