Model CLT Lease - Chapter 11-A - The 2011 CLT Network Ground Lease

Sep 15, 2026

Uploaded by Adam

Model CLT Lease Chapter 11-A defines the 2011 CLT Network Ground Lease framework for homeowner occupancy under a long-term land lease. It sets core rules on what rights are leased (land rights while mineral rights are excluded), lease duration for 99 years with an option to renew for another 99 years, and consequences of sale of the leased land. The chapter details permitted residential use, inspection rights, fee calculation and adjustments, tax responsibility and contest rights, repair reserve requirements, ownership and financing limits, liability/insurance obligations, and treatment of damage, destruction, or public taking. It also outlines transfer processes and multiple resale versions.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages47

Reading Time1 h 58 min

AccessFree to download

RECITALS

DEFINITIONS

ARTICLE 1: Letter of Agreement and Attorney’s Letter

ARTICLE 2: Leasing of Rights to the Land

ARTICLE 3: Term of Lease, Change of Land Owner

ARTICLE 4: Use of Leased Land

ARTICLE 5: Lease Fee

ARTICLE 6: Taxes and Assessments

ARTICLE 7: The Home

ARTICLE 8: Financing

ARTICLE 9: Liability, Insurance, Damage and Destruction, Eminent Domain

ARTICLE 10: Transfer of the Home

Model CLT Lease 01/2011 Chapter 11-A THE 2011 CLT NETWORK MODEL GROUND LEASE TABLE OF CONTENTS RECITALS DEFINITIONS ARTICLE 1: Homeowner’s Letter of Agreement and Attorney’s Letter of Acknowledgment are Attached as Exhibits. ARTICLE 2: Leasing of Rights to the Land 2.1 CLT LEASES THE LAND TO HOMEOWNER: 2.2 MINERAL RIGHTS NOT LEASED TO HOMEOWNER ARTICLE 3: Term of Lease, Change of Land Owner 3.1 TERM OF LEASE IS 99 YEARS 3.2 HOMEOWNER CAN RENEW LEASE FOR ANOTHER 99 YEARS 3.3 WHAT HAPPENS IF CLT DECIDES TO SELL THE LEASED LAND ARTICLE 4: Use of Leased Land 4.1 HOMEOWNER MAY USE THE HOME ONLY FOR RESIDENTIAL AND RELATED PURPOSES 4.2 HOMEOWNER MUST USE THE HOME AND LEASED LAND RESPONSIBILYAND IN COMPLIANCE WITH THE LAW 4.3 HOMEOWNER IS RESPONSIBLE FOR USE BY OTHERS 4.4 HOMEOWNER MUST OCCUPY THE HOME FOR AT LEAST MONTHS EACH YEAR 4.5 LEASED LAND MAY NOT BE SUBLEASED WITHOUT CLT’S PERMISSION 4.6 CLT HAS A RIGHT TO INSPECT THE LEASED LAND 4.7 HOMEOWNER HAS A RIGHT TO QUIET ENJOYMENT ARTICLE 5: Lease Fee 5.1 AMOUNT OF LEASE FEE 5.2 WHEN THE LEASE FEE IS TO BE PAID 5.3 HOW THE AMOUNT OF THE LAND USE FEE HAS BEEN DETERMINED 5.4 CLT MAY REDUCE OR SUSPEND THE LEASE FEE TO IMPROVE AFFORDABILITY 5.5 FEES MAY BE INCREASED FROM TIME TO TIME 5.6 LAND USE FEE WILL BE INCREASED IF RESTRICTIONS ARE REMOVED 5.7 IF PAYMENT IS LATE, INTEREST CAN BE CHARGED 5.8 CLT CAN COLLECT UNPAID FEES WHEN HOME IS SOLD ARTICLE 6: Taxes and Assessments 6.1 HOMEOWNER IS RESPONSIBLE FOR PAYING ALL TAXES AND ASSESSMENTS 6.2 CLT WILL PASS ON ANY TAX BILLS IT RECEIVES TO HOMEOWNER 6.3 HOMEOWNER HAS A RIGHT TO CONTEST TAXES 6.4 IF HOMEOWNER FAILS TO PAY TAXES, CLT MAY INCREASE LEASE FEE Model CLT Lease 01/2011 6.5 PARTY THAT PAYS TAXES MUST SHOW PROOF ARTICLE 7: The Home 7.1 HOMEOWNER OWNS THE HOUSE AND ALL OTHER IMPROVEMENTS ON THE LEASED LAND 7.2 HOMEOWNER PURCHASES HOME WHEN SIGNING LEASE 7.3 CONSTRUCTION CARRIED OUT BY HOMEOWNER MUST COMPLY WITH CERTAIN REQUIREMENTS 7.4 HOMEOWNER MAY NOT ALLOW STATUTORY LIENS TO REMAIN AGAINST LEASED LAND OR HOME 7.5 HOMEOWNER IS RESPONSIBLE FOR SERVICES, MAINTENANCE AND REPAIRS 7.6 A REPAIR RESERVE FUND IS ESTABISHED TO SUPPORT FUTURE REPAIRS [This section must either be completed in accordance with the CLT’s repair reserve policy, or omitted entirely. See Commentary on this Section 7.6.] 7.7 WHEN LEASE ENDS, OWNERSHIP REVERTS TO CLT, WHICH SHALL REIMBURSE HOMEOWNER ARTICLE 8: Financing 8.1 HOMEOWNER CANNOT MORTGAGE THE HOME WITHOUT CLT’s PERMISSION 8.2 BY SIGNING LEASE, CLT GIVES PERMISSION FOR ORIGINAL MORTGAGE 8.3 HOMEOWNER MUST GET SPECIFIC PERMISSION FOR REFINANCING OR OTHER SUBSEQUENT MORTGAGES. 8.4 CLT IS REQUIRED TO PERMIT A“STANDARD PERMITTED MORTGAGE” 8.5 A PERMITTED MORTGAGEE HAS CERTAIN OBLIGATIONS UNDER THE LEASE 8.6 A PERMITTED MORTGAGEE HAS CERTAIN RIGHTS UNDER THE LEASE 8.7 IN THE EVENT OF FORECLOSURE, ANY PROCEEDS IN EXCESS OF THE PURCHASE OPTION PRICE WILL GO TO CLT ARTICLE 9: Liability, Insurance, Damage and Destruction, Eminent Domain 9.1 HOMEOWNER ASSUMES ALL LIABILITY 9.2 HOMEOWNER MUST DEFEND CLT AGAINST ALL CLAIMS OF LIABILITY 9.3 HOMEOWNER MUST REIMBURSE CLT 9.4 HOMEOWNER MUST INSURE THE HOME AGAINST LOSS AND MUST MAINTAIN LIABILITY INSURANCE ON HOME AND LEASED LAND 9.5 WHAT HAPPENS IF HOME IS DAMAGED OR DESTROYED 9.6 WHAT HAPPENS IF SOME OR ALL OF THE LAND IS TAKEN FOR PUBLIC USE 9.7 IF PART OF THE LAND IS TAKEN, THE LEASE FEE MAY BE REDUCED 9.8 IF LEASE IS TERMINATED BY DAMAGE, DESTRUCTION OR TAKING, CLTWILL TRY TO HELP HOMEOWNER BUY ANOTHER CLT HOME ARTICLE 10: Transfer of the Home [Four possible versions of Article 10 arepresented in the Appendix at the end of this chapter. These versions differ with regard to three important variables: (1) whether the homeowner is given an absolute right to select an income-qualified Model CLT Lease 01/2011 buyer,(2) the type of re

FAQs

How long is the lease term and is there an option to renew?

The lease term is 99 years. The homeowner can renew the lease for another 99 years.

What types of rights are leased, and are mineral rights included?

CLT leases the land to the homeowner for permitted uses, while mineral rights are not leased to the homeowner.

What happens to lease fees and responsibilities if taxes are not paid by the homeowner?

The homeowner is responsible for paying all taxes and assessments. If the homeowner fails to pay taxes, CLT may increase the lease fee, and the party that pays taxes must show proof.

Sep 15, 2026

Uploaded by Adam