Housing is affordable when the monthly cost does not exceed 30% to 35% of of a homeowner’s gross income. CLTs have several avenues available to help keep home prices within the community affordable. One of the most important is the resale formula. The resale formula allows the CLT to place a cap on the resale price of any home in the community. Homeowners still build some equity, but prices do not escalate so much that they are out of financial range for people whom the community hopes to support. As a result, resale values are almost always lower than the actual market value of the home. CLTs also facilitate long-term affordability by keeping the community property out of the general housing market. Even when a CLT decides to cease operation and dissolve, it cannot just put its property out for sale. Instead, it must transfer the property to another charitable organization, often one with a similar purpose. If there is no acceptable recipient for the land, then ownership typically reverts to the state.