Every CLT determines its own priorities for who will be served – i.e., who will be the principal beneficiaries of the CLT’s activities. Many CLTs target households with incomes below 80% of Area Median Income because of the urgency of need experienced by lower-income households and because of requirements set by federal affordable housing programs such as HOME. In communities where housing is already very expensive (and escalating rapidly) and where even moderate-income households may be excluded from the homeownership market, however, CLTs have often targeted a higher range of household incomes, including households with incomes up to 100% or 120% of Area Median Income. CLTs typically establish secondary selection criteria as well. They may give preference, for example, to larger families or to persons displaced from housing or to households currently residing or working in the CLT’s service area.

Although homes for sale through a CLT are nearly always more affordable than market-rate housing, very few low-income or moderate-income households will be able to buy a CLT home out of their own savings. They will need mortgage financing. Consequently, CLTs work with local lenders to secure mortgages for their homeowners. Many private lenders across the country, many state housing finance agencies, and national agencies like Rural Development and Fannie Mae are making mortgage financing available for homes located on land that is leased from a CLT.