Finding the Perfect Fit: How to Align Community Goals with Ownership Models

In today’s world, community development isn't just about building structures—it's about building power. Empowering residents to be part of the solution, to own and invest in their neighborhoods, transforms not only the buildings they live in, but also the opportunities they have. One of the most innovative ways to do this is through community ownership models like those offered by Capital Region Community Investment Trust (CRCIT). These models offer a way for local residents to invest in real estate within their own neighborhoods, create businesses that serve their unique needs, and grow generational wealth that benefits the whole community. But how do we ensure these models truly fit the goals and needs of the community? Let’s dive in.

Understanding the Need for Diverse Ownership Models

Community ownership models are not one-size-fits-all. While some neighborhoods may thrive with a particular kind of ownership structure, others may need a different approach to meet their goals. What’s important is that these models are tailored to the specific needs of the community they serve.

In essence, a community ownership model is any system where local people individually and collectively own or invest in assets—whether it’s land, property, or even businesses—allowing them to have a say in how those assets are used, managed, and developed.

Community ownership can fuel economic growth, give residents a stake in their future, and help ensure that development serves the local community's needs. But finding the right model to meet those needs takes careful thought and understanding.

That’s where different community ownership models come into play. Let’s look at some of the most common structures, each of which is suited to different goals and needs.

Different Types of Community Ownership Models

Limited Equity Cooperatives (LECs)

One well-established model is the Limited Equity Cooperative (LEC), where residents come together to purchase and manage their homes or businesses. The key characteristic of LECs is that the residents have ownership, but their equity is limited to ensure long-term affordability. These are particularly effective in preserving affordable housing in urban areas where gentrification might otherwise drive out local residents.

For example, in cities across the U.S., LECs have been used to preserve affordable housing in neighborhoods undergoing redevelopment. By pooling their resources, residents collectively own the property and control how it’s used, ensuring that it remains affordable for generations to come.

Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are another powerful model, especially when it comes to purchasing and managing commercial properties. By pooling funds from many small investors, a community can collectively purchase buildings or land, enabling them to leverage their combined resources for larger-scale projects.

These co-ops are an excellent option for neighborhoods looking to revitalize vacant properties or invest in local infrastructure. Community members in a REIT can decide what types of businesses or developments are needed, ensuring that investment goes into projects that directly benefit the community. CRCIT’s approach is very much in line with this model, where small monthly investments from residents go toward purchasing and renovating properties, creating a collaborative ownership structure that benefits everyone.

Community Land Trusts (CLTs)

A Community Land Trust (CLT) involves non-profit organizations owning and managing land on behalf of a community. The focus is on providing affordable housing and preventing displacement due to rising property values. CLTs often own the land while individuals or families own the homes or buildings on it, which allows for long-term affordability.

CLTs are perfect for areas facing rapid gentrification or housing shortages. For example, cities like Burlington, Vermont, have used CLTs to maintain affordable housing options even as real estate prices surge. In urban and suburban areas, CLTs help ensure that local residents can continue to live in the area and aren’t priced out by outside investors.

Aligning Community Goals with the Right Model

How do you know which ownership model fits your community’s needs? The first step is to understand the community’s goals. Does your neighborhood need affordable housing? Do you need more locally owned businesses? Is there a specific service—like a daycare, a grocery store, or a fitness studio—that’s missing? These are the kinds of questions you need to ask.

Let’s take a closer look at how CRCIT aligns its investment models with the goals of its community. CRCIT’s mission is to empower local residents to purchase real estate in their own neighborhoods. Through its Owing to Owning curriculum, CRCIT enables community members to invest in properties and shape the future of their neighborhoods.

For example, residents in a designated zip code can invest anywhere from $10 to $100 per month to become shareholders in local real estate projects. This model doesn’t just put ownership in the hands of big developers—it puts it directly in the hands of the people who live there. The investors can then decide what the neighborhood needs—whether that’s affordable housing, small retail businesses, or community-focused spaces like daycares or afterschool programs. This direct involvement is one of the most powerful aspects of CRCIT’s approach: the community shapes its own future.

How the CRCIT Model Works

One of the key selling points of CRCIT’s model is how accessible and transparent it is. Residents can start investing in a property for as little as $10 per month. Over time, as the property is developed and becomes more profitable, investors begin to see a return on their investment, with dividends starting at a minimum of 2%. The best part? This is a loss-protected investment. Community members can withdraw their money at any time, giving them the freedom and flexibility to decide how they want to engage.

The properties CRCIT targets are carefully chosen based on community needs. The Pommer, for example, is a building that’s being renovated to accommodate CRCIT’s headquarters along with several small retail businesses. This project will provide local entrepreneurs with affordable retail space, while also creating an anchor point for the neighborhood.

This type of investment fosters community pride. It ensures that community members aren’t just living in their neighborhood, but also investing in it—turning their monthly contributions into real buying power that can shape the local economy. Over time, as properties are paid off and the value of the community increases, so does the potential for greater dividends, creating an ongoing cycle of wealth-building.

The Key Benefits of Community Investment Models

Economic Empowerment

One of the most significant benefits of community investment is economic empowerment. Local residents can take part in investments that were previously out of reach for many. As they invest in local real estate, they also invest in their future and the future of their community.

Building Community

When a neighborhood is empowered to invest in its own future, it strengthens the community bond. People who live in the same area share an investment in its prosperity. This leads to increased collaboration, pride, and a sense of ownership that helps to drive community cohesion.

Sustainability

Unlike traditional development models that might focus solely on short-term profits, community investment models are focused on long-term growth and sustainability. The collective ownership structure helps ensure that decisions are made with the community’s best interests in mind, with a focus on maintaining affordability and accessibility over time.

Why Business Executives Should Care About Innovative Investment Models

The future of investment isn’t just about making a quick profit—it’s about creating lasting value. CRCIT’s model is a prime example of how businesses can be part of a socially-conscious investment landscape. By focusing on community-driven projects, businesses can foster goodwill, tap into new local markets, and support long-term growth in neighborhoods that need it the most.

Moreover, these models present an opportunity for businesses to invest in local real estate in a way that is mutually beneficial. Rather than seeing community development as a zero-sum game, these models offer businesses and investors the chance to engage in projects that support both financial returns and social impact.

Align With the Right Ownership Model

Community ownership models, like those offered by CRCIT, are changing the way we think about investing in neighborhoods. By aligning the right ownership model with the community's goals, we can build not only strong businesses but strong, vibrant, and sustainable communities. These models are adaptable, scalable, and most importantly, they empower residents to create the change they want to see. So, whether you're a business executive looking to invest in a neighborhood’s future or a resident hoping to get involved, community ownership offers a unique and powerful way forward.

If you're interested in learning more about how you can get involved, whether through investment or collaboration, CRCIT’s Owing to Owning curriculum is a great starting point. Together, we can make lasting change, one property at a time.