Are evictions or foreclosures from CLT houses possible?
While evictions and foreclosures are still possible with CLT houses, the process looks a bit different than a non-CLT eviction or foreclosure. The CLT’s mission is to house low and moderate income people, and without a profit motive the CLT is far more willing to figure out a solution when tenants and homeowners are facing difficult times. For instance, during the Covid-19 pandemic the CLT was able to offer rent forgiveness when folks were finding it hard to make ends meet. Even without a global crisis, the CLT always puts people before money.
CLT’s like ours have an excellent track record for having far fewer foreclosed properties than the national average. In addition to this, many CLTs are implementing stewardship activities such as pre-purchase education, prevention of high-risk loans, early detection of and intervention in delinquencies and foreclosure filings, and ongoing support for homeowners after purchase.
The CLT essentially acts as a safety net for renters and homeowners by providing help every step of the way to avoid evictions/foreclosures.