New Models Emerge to Facilitate Community Land Ownership and Local Control in Real Estate Development
New community ownership models are gaining prominence, aiming to empower residents to invest directly in local real estate and shape development. These models, such as diversified community investment funds (DCIFs) and community investment trusts (CITs), prioritize local control and wealth-building. Brent Fosberg in Lansing, Michigan, is developing the Lansing Growth Fund, a DCIF, to allow residents to finance local development. Similarly, Local Return in Rhode Island launched a DCIF in 2024, raising capital from community investors. In Portland, Oregon, the Community Investment Trust (CIT) enables residents to invest small amounts in commercial properties like Plaza 122, a retail mall. These initiatives aim to counter the concentration of commercial real estate ownership and provide pathways for low-income residents to build wealth and influence neighborhood development, often by structuring investments to comply with federal regulations like Regulation Crowdfunding.
