Renting housing or commercial space from a CLT

Tenants who live in a unit of CLT rental housing have these rights:

    • Below-market rents
    • Rents are calculated based on the cost of maintaining the building you live in. That means that rent can only be increased to match increased costs of responsible building maintenance, or temporarily┬áto cover large maintenance expenses
    • Your lease lasts forever
      • You can move out whenever you want, as long as you give three months notice
      • Forever means forever. You can transfer your lease to your lease to your children and grandchildren.
      • Ordinarily, most leases from landlords are for one year. That means that every year, a landlord can choose not to renew your lease, even if you were never a day late or penny short on rent. But since your lease never comes up for renewal, the CLT can never end your lease.
        • Your lease can only be ended by the CLT if you fall too far behind on rent or engage in disruptive or destructive behavior
    • After several years, you have the right to purchase your home for less than its market value
      • How many years? This depends on the market value, condition of the building itself, and other factors.
    • Anyone 18 years or older in the household is automatically member of the CLT, entitled to vote for the Board of Directors. The Board of Directors makes most of the big picture decisions of the CLT.
      • One third of seats on the Board of Directors are reserved for people living in a CLT home, and at least one must be a tenant
      • This ensures that people are always looking out for the interests of CLT tenants.

 

Businesses that rent commercial space from a CLT have these rights:

    • Below-market rents
    • Rents are calculated based on the cost of maintaining the building. That means that rent can only be increased to match increased costs of responsible building maintenance, or temporarily┬áto cover large maintenance expenses
    • A lease that lasts forever
      • A tenant can end a lease at any time with three months notice
      • A lease can only be ended by the CLT if a tenant falls too far behind on rent, engages in disruptive or destructive behavior, or fails to meet performance requirements
    • Formal grievance procedure
    • Businesses must agree to performance requirements. These are designed to ensure prosperity for all of Milwaukee
      • In exchange for low rents and secure tenancy, businesses must help to promote the economic improvement of Milwaukee.
        • This could be accomplished by hiring a set percentage of employees from economically disadvantaged Milwaukee neighborhoods, sourcing a specific percentage of inputs from Milwaukee businesses, etc.