LVC's are a simple contract similar to a mortgage. An LVC is an agreement made between the government and the taxpayer to collect the rental value of a home in exchange for mortgage debt, and eventually tax liability. They are designed to give homeowners an alternative to a mortgage, with cheaper monthly payments, do not create problems for the nations financial infrastructure and reduce the inflationary effects of money issuance. A neat side effect is the revenue from LVC's can be used for public purposes rather than as an unearned income for a bank. Compared to similar policies such as Land Value Taxation they operate on the homeowners consent, not lawful confiscation. Its a free choice for every single homeowner to enter into an LVC, which will largely depend on if doing so will be cheaper for them. If not they can proceed with the traditional way of financing a hone with a mortgage.