The city of Lexington has reached a critical shortage of affordable housing available to families earning 80% - 50% of area median income (AMI). This study focuses on how to grow the Lexington CLT into self-sustainability while also narrowing the affordable housing gaps in Fayette County. Current research offers support for the city’s affordable housing program to adopt the community land trust model (CLT). The research recommends using tools such as the Lexington CLT, the Lexington-Fayette Urban County Landbank Authority (LFUCLA), and Lexington’s Affordable Housing Trust Fund, along with new development incentives, to develop a housing strategy that is cost effective and grows rather than shrinks its portfolio of units. The CLT model performs better than other traditional affordable housing models in a variety of achievement measures, including keeping units affordable for future buyers after the initial buyer received a subsidy to purchase the home. CLTs move modest income families into successful homeownership, and unlike traditional models of delivering affordable housing, the ability to retain affordability for subsequent sales requires no additional public or private subsidy.

CLTs are known for their commitment to stewardship, which extends to looking out for the homeowner and family after the home is purchased. Most importantly, CLTs keep neighborhoods stable and family wealth safe by preventing foreclosure. When a city delivers housing through a CLT, they collect critical data that aids governments and the public in determining the effectiveness of affordable housing programs across locally and the nation.

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