Community land trust and lease in Belgium: model, legal framework and impact
The Community Land Trust model in Belgium. How the emphyteutic lease works, legal framework, concrete examples in Brussels and Wallonia, and impact on housing affordability.
The Community Land Trust: an alternative model
The Community Land Trust (CLT) is a housing access model born in the United States in the 1960s, now present in several European countries. Its fundamental principle: separating land ownership from building ownership to durably reduce housing costs.
In practice, a non-profit foundation or association buys land and retains it indefinitely. The homes built on this land are sold or let to low-income households at a price 30 to 50% below market value. In return, anti-speculative clauses prevent resale at full market price.
In Belgium, the CLT model emerged in Brussels in 2012 with the creation of the Community Land Trust Brussels (CLTB), recognised by the Brussels-Capital Region. Wallonia and Flanders are also exploring the concept.
The CLT does not give away the land — it makes it accessible. The land remains the trust’s property in perpetuity, removing the most expensive speculative component of property prices.
The legal framework in Belgium
The emphyteutic lease
The central legal mechanism of the CLT is the emphyteutic lease (or right of emphyteusis), reformed by Book 3 of the Civil Code in 2021. This real right grants the leaseholder (the home buyer) a right to use the land for a period of 27 to 99 years.
| Feature | CLT emphyteutic lease |
|---|---|
| Duration | 27 to 99 years (usually 99 years) |
| Annual ground rent | Symbolic (often 1 EUR) |
| Leaseholder rights | Use, construction, modification (subject to conditions) |
| Transferability | Yes (subject to CLT conditions) |
| Reversion at end of lease | Land returns to CLT with buildings |
Legal recognition
In Brussels, the CLT is recognised by the ordinance of 23 July 2014, which grants it a specific status and regional funding. In Wallonia, the concept is integrated into housing policy through pilot projects. In Flanders, the community land trust is recognised by Flemish social housing legislation.
Anti-speculative clauses
The sale deed between the CLT and the buyer contains specific clauses:
- Capped resale price according to a pre-defined formula
- Right of first refusal for the CLT on resale
- Personal occupation obligation (no letting by the buyer)
- Income conditions for successive buyers
The Brussels CLT: a concrete example
Achievements
The CLTB has completed several projects since its creation:
- L’Espoir (Molenbeek): 32 family homes delivered in 2019
- Calico (Forest): mixed housing/retail project with 35 homes
- Several projects under way in various Brussels municipalities
Household profiles
CLT homes target low-income households who cannot access traditional homeownership but whose income is too high for social housing:
| Criterion | CLTB condition |
|---|---|
| Annual income | 20,000 - 60,000 EUR (depending on household composition) |
| Property assets | No property owned |
| Commitment | Mandatory personal occupation |
| Average purchase price | 120,000 - 180,000 EUR (vs 250,000 - 350,000 open market) |
Financing
The buyer pays for the building and takes out a standard mortgage. Since the land is not purchased, the deposit required is significantly reduced. Property tax is also reduced since it applies only to the building.
For tenants in a CLT stock, the lease is a standard primary residence lease at moderate rent.
Leases in a CLT
For owner-occupiers
The 99-year emphyteutic lease confers a quasi-ownership right over the land. The leaseholder can:
- Live in the property as their primary residence
- Pass on the right to their heirs (subject to conditions)
- Resell the building (at the capped price)
For tenants
Some CLT homes are let directly. In this case, the lease is a primary residence lease subject to the usual regional rules:
- 9-year duration (or short term)
- Rental guarantee (2 months maximum)
- Mandatory registration
- Annual rent indexation
The difference lies in the rent amount, set below market price to match the income of target households.
For landlords
The CLT model is primarily intended for owner-occupiers. Letting by a CLT buyer is generally prohibited by the contract clauses. Rental homes in a CLT stock are managed directly by the trust or by a social partner.
Advantages and limitations of the CLT model
Advantages
- Lasting affordability: the price remains affordable from generation to generation
- Social mix: CLT homes integrate into existing neighbourhoods
- Collective ownership: residents participate in the trust’s governance
- Anti-speculative impact: the land is permanently removed from speculation
Limitations
- Very limited supply: a few dozen homes in Brussels, virtually non-existent elsewhere
- Constrained capital gains: the buyer does not benefit from property market increases
- Legal complexity: the emphyteutic lease/sale/anti-speculative clause structure is complex
- Public funding required: the model depends on regional subsidies for land acquisition
The CLT model is not a silver bullet for the housing crisis, but it is a valuable complementary tool for middle-income households. For conventional landlords, understanding this model helps better position their offering in an evolving market. To learn more about your landlord obligations, see our rental management guide.
Frequently asked questions
-
A Community Land Trust (CLT) is a non-profit organisation that acquires and retains ownership of the land, while the homes built on it are sold or let to low-income households. In Belgium, the Brussels CLT is the most advanced, with over 30 homes delivered and dozens more planned. The mechanism reduces the purchase price by 30 to 50% by separating the cost of the land from the cost of the building.
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No. CLT homes are subject to anti-speculative clauses. On resale, the price is capped according to a formula that accounts for inflation and works carried out, but prevents speculative gain. The aim is to maintain housing affordability for future generations. The CLT generally holds a right of first refusal.
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The CLT primarily uses the emphyteutic lease (long-term real right, 27 to 99 years) for the land, combined with a standard sale deed for the building. For the rental part of the stock, a standard primary residence lease is concluded between the CLT and the tenant, on usual terms but at social or moderate rent.
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