When the first owner sells their home, the CLT buys it back for a modest increase that is fixed by a resale formula in their lease. The seller realizes a fair rate of return on his or her investment, and the home remains affordable for the next buyer. In this way, CLTs protect the affordability for future residents.
This works especially well in places like Bainbridge Island, where the value of land is the major factor driving home prices upward. Affordable housing can be built, and kept affordable, if the land is not part of the equation.