Listen to the full episode below to discover how James Watson bought his first home at 64 through an innovative housing model most people have never heard of.
How a 64-Year-Old Army Veteran Bought His First Home for $850/Month
James Watson is a 64-year-old Army veteran and maintenance supervisor who spent years living in public housing at Walnut Terrace in Raleigh, North Carolina. In 2024, he became a first-time homeowner through a housing model that allowed him to purchase a three-bedroom ranch home in Southeast Raleigh for significantly below market value.
What is a Community Land Trust?
A Community Land Trust (CLT) is a nonprofit organization that owns land on behalf of a community while selling the houses built on that land at affordable prices. The Raleigh Area Land Trust (RALT) uses this model to serve families with limited ability to compete in the conventional housing market.
How Community Land Trusts Work:
- The nonprofit trust purchases and retains ownership of the land permanently
- Homebuyers purchase only the house structure, not the land underneath
- Buyers lease the land through a long-term (typically 99-year) renewable lease
- Homes remain permanently affordable for future buyers through resale restrictions
- Homeowners can pass the property to their children under the same terms
James Watson’s Housing Success Story
James Watson purchased his Southeast Raleigh home for $199,000 through the Raleigh Area Land Trust. The house and land together appraised at $255,000, representing a 22% savings below market value. His monthly mortgage payment is $850.
Financial Details:
- Purchase price: $199,000
- Total appraisal value: $255,000
- Down payment assistance: $80,000 (through local program)
- Personal down payment: $1,200
- Resulting mortgage: $117,800
- Monthly mortgage payment: $850
Kevin Campbell, Executive Director of the Raleigh Area Land Trust, explains that the model ensures homes function as wealth-building tools for families rather than investment vehicles for outside speculators.
Who is James Watson?
James Watson is an Army veteran who has worked in maintenance and property management throughout his career. He previously served as maintenance supervisor for Pendant Management/DHIC and lived at Walnut Terrace public housing for 21 years before purchasing his home through RALT.
James Watson completed extensive training at Wake Tech Community College, earning approximately 20 certifications in areas including:
- Building inspection
- Plumbing
- Heating systems
- General maintenance
Watson married in spring 2025 and considers his Southeast Raleigh home his “forever home.” He built a custom deck and maintains his neighbor’s lawn as part of his community involvement.
The Civil Rights Origins of Community Land Trusts
Who Founded the First Community Land Trust?
The first Community Land Trust in the United States was New Communities Inc., founded in 1969 in Albany, Georgia by Civil Rights leaders including:
- Charles Sherrod – Student Nonviolent Coordinating Committee (SNCC) field secretary
- Shirley Sherrod – Civil Rights organizer and former USDA Georgia State Director
- Slater King – President of the Albany Movement and cousin of Martin Luther King Jr.
- Bob Swann – Peace activist and land reform advocate
What was New Communities Inc.?
New Communities Inc. was established as “a nonprofit organization to hold land in perpetual trust for the permanent use of rural communities.” The organization purchased 5,700 acres near Albany, Georgia in 1970, making it the largest tract of land owned by African Americans in the United States at that time.
New Communities Inc. Operations:
- Grew peanuts, corn, soybeans, and vegetables on 1,800+ acres
- Operated farmers’ market and greenhouse facilities
- Raised pigs and operated smokehouse for cured meats
- Pioneered Muscadine grape cultivation in Southwest Georgia
- Provided housing for approximately 10 families through long-term renewable leases
The Israeli Kibbutz Connection
In 1968, Charles Sherrod, Slater King, and other Civil Rights leaders traveled to Israel to study the kibbutz system and learn how Israel was using community land ownership for resettlement. They adapted concepts from the Jewish National Fund’s 99-year ground lease model for their Georgia community land trust.
USDA Discrimination and the Pigford Settlement
New Communities Inc. faced systematic discrimination from the United States Department of Agriculture (USDA) and Farmers Home Administration. Governor Lester Maddox blocked federal funding, and discriminatory lending practices contributed to the organization losing its land to foreclosure in 1985.
In 2009, New Communities Inc. received the largest individual settlement in the Pigford v. Glickman class-action discrimination lawsuit against the USDA: $12.8 million. Charles Sherrod and Shirley Sherrod received additional compensation for mental anguish.
Resora: New Communities’ Revival
Using proceeds from the Pigford settlement, New Communities Inc. purchased 1,600 acres in Georgia known as Resora. The property was formerly Cypress Pond Plantation, owned by one of Georgia’s largest slaveholders.
Resora now serves as:
- Working farm growing pecans and other crops
- Educational retreat and training center
- Base for racial healing and social justice programs
- Community development initiatives
Community Land Trusts Across America
Burlington Community Land Trust and Bernie Sanders
The Burlington Community Land Trust (now Champlain Housing Trust) was founded in 1984 in Burlington, Vermont under Mayor Bernie Sanders. The Champlain Housing Trust is currently the largest community land trust in the United States, managing over 2,000 units of affordable housing across a three-county area in northwestern Vermont.
Champlain Housing Trust units comprise 7.6% of total housing in Burlington, Vermont, demonstrating the scalability of the community land trust model in addressing affordable housing shortages.
Current Community Land Trust Statistics
According to the Lincoln Institute of Land Policy and Grounded Solutions Network, there are currently over 280 Community Land Trusts operating across the United States. These organizations serve communities in urban, suburban, and rural areas across 38 states and the District of Columbia.
Community Land Trust Growth:
- 1970s: Approximately 12 rural community land trusts
- 1980s: Over 100 community land trusts in 23 states
- 2025: 280+ community land trusts nationwide
How Community Land Trusts Address Housing Affordability
Income Requirements for Community Land Trusts
The Raleigh Area Land Trust serves households earning up to 80% of the Area Median Income (AMI) for Wake County, North Carolina. For a family of four, this represents approximately $100,000 annually in 2025.
RALT follows the principle that housing costs should not exceed 30% of a household’s income, working with applicants to determine affordable mortgage levels and providing down payment assistance to make homeownership achievable.
Permanent Affordability Mechanism
Unlike traditional affordable housing programs that may have expiring affordability covenants, Community Land Trusts maintain permanent affordability through:
- Nonprofit land ownership in perpetuity
- Resale price restrictions that preserve affordability for future buyers
- Long-term renewable ground leases (typically 99 years)
- Community-controlled governance structure
The National Low Income Housing Coalition estimates that nearly 500,000 Low Income Housing Tax Credit (LIHTC) financed units will reach the end of their 30-year affordability requirements by 2030, potentially displacing residents as units convert to market-rate housing.
Wealth Building Through Community Land Trusts
Community Land Trusts balance affordability preservation with homeowner wealth building. Homeowners can:
- Build equity through mortgage principal payments
- Benefit from home improvements and appreciation within resale restrictions
- Pass property ownership to children under the same affordable terms
- Access homeownership benefits without competing in the speculative market
Kevin Campbell of RALT emphasizes that community land trust homes function as wealth-building tools rather than speculative investments, ensuring benefits serve local families rather than outside investors.
Community Land Trusts in North Carolina
Raleigh Area Land Trust (RALT) Programs
The Raleigh Area Land Trust serves Raleigh and Wake County, North Carolina with a mission to increase affordable housing opportunities for families with low to moderate incomes. RALT uses the shared equity homeownership model to balance wealth building for families with preservation of community investment.
RALT Current Projects:
- Initial homes on South Gate Drive in Southeast Raleigh
- 18 units under construction in the Idlewild community (2025)
- Scattered site units planned for Cary, North Carolina
- Ongoing acquisition of properties for conversion to community land trust homes
Funding and Support for RALT
The Raleigh Regional Association of Realtors provides financial support to RALT through their foundation, demonstrating real estate industry recognition of community land trusts as a viable affordable housing solution.
RALT leverages multiple funding sources including:
- Public subsidies and down payment assistance programs
- Private donations from individuals and organizations
- Bargain sale purchases from property owners
- Partnerships with local government entities
Wake County Housing Market Context
Wake County, North Carolina has experienced significant housing cost increases, particularly since COVID-19. The Raleigh-Durham metropolitan area’s growing economy and population have created affordability challenges for working families, including teachers, first responders, and service workers.
James Watson’s $850 monthly mortgage payment contrasts sharply with average rental costs in Raleigh and Wake County, demonstrating how community land trusts can provide stability for residents who might otherwise face displacement due to rising housing costs.
Community Land Trust Impact on Racial Equity
Addressing Historical Housing Discrimination
Community Land Trusts emerged from the Civil Rights Movement as a direct response to housing discrimination and displacement faced by African American communities. The model addresses historical inequities by:
- Providing pathways to homeownership for traditionally excluded communities
- Preventing displacement through permanently affordable housing
- Building community wealth that remains in local hands
- Creating community-controlled development without gentrification
Generational Wealth Building
Kevin Campbell notes that many RALT participants are the first in their families to explore homeownership. The community land trust model enables generational wealth transfer through:
- Heritable property rights under affordable terms
- Equity building through mortgage payments and improvements
- Stability that allows families to invest in education and other opportunities
- Protection from speculative displacement
Contemporary Racial Healing
New Communities Inc. continues its mission of promoting racial justice through Resora, their 1,600-acre farm and education center. Programs address contemporary issues including:
- African American land loss and agricultural preservation
- Food justice and environmental equity
- Economic development in rural communities
- Historical education and racial healing initiatives
Frequently Asked Questions About Community Land Trusts
How Do Community Land Trusts Work?
Community Land Trusts separate land ownership from building ownership. A nonprofit organization purchases and holds land permanently, while selling houses to income-qualified buyers. Homeowners lease the land through long-term renewable agreements and can sell their homes within affordability restrictions.
Can You Pass a Community Land Trust Home to Your Children?
Yes. Community Land Trust homeowners can bequeath their property to children, who inherit both the house ownership and the land lease under the same affordable terms. This enables generational wealth building while maintaining community affordability.
What Happens When You Sell a Community Land Trust Home?
When selling a Community Land Trust home, the CLT typically has the right of first refusal and sets the resale price using a formula that balances seller equity building with buyer affordability. The next purchaser must meet income eligibility requirements.
Do Community Land Trust Homeowners Pay Property Taxes?
Yes. Community Land Trust homeowners pay property taxes on their homes, and the CLT pays property taxes on the land. Some jurisdictions provide property tax benefits for community land trust properties due to their affordable housing mission.
How Do You Qualify for a Community Land Trust Home?
Qualification requirements vary by Community Land Trust but typically include:
- Income limits (often 50-80% of Area Median Income)
- First-time homebuyer or previous homeowner eligibility
- Ability to obtain mortgage financing
- Completion of homeownership education programs
- Commitment to use property as primary residence
Contact Information and Resources
Raleigh Area Land Trust
Kevin Campbell, Executive Director
Raleigh Area Land Trust (RALT)
Serving Raleigh and Wake County, North Carolina
For information about Community Land Trust opportunities in Wake County, contact RALT directly or visit their website for current available properties and application processes.
National Community Land Trust Resources
- Grounded Solutions Network: National organization supporting community land trusts
- Lincoln Institute of Land Policy: Research and policy analysis on community land trusts
- Center for Community Land Trust Innovation: Technical assistance and training
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Conclusion
James Watson’s journey from Walnut Terrace public housing to homeownership through the Raleigh Area Land Trust demonstrates how Community Land Trusts provide practical solutions to housing affordability challenges. The model’s origins in the Civil Rights Movement show how community-controlled development can address both immediate housing needs and long-term equity building.
With over 280 Community Land Trusts operating nationwide and growing recognition from policymakers, real estate professionals, and community advocates, this 50-year-old housing model offers proven strategies for maintaining affordability while building community wealth.
For Wake County residents and others facing housing affordability challenges, Community Land Trusts represent an opportunity to access homeownership, build equity, and contribute to community stability without competing in speculative markets that increasingly exclude working families.
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