What is land readjustment?

Land readjustment is a physical redevelopment of property, where original property owners retain their property rights in a new, more valuable physical format in the future development.

 

It is an urban tool used widely around the world from agricultural and peri-urban settings to densely populated urban centers. Land readjustment applied to a suburban context can have many different applications and ownership structures. Described below is a land readjustment process that allows homeowners to ground lease their land to an investor for redevelopment. 

[1] - EXISTING CONDITION

An area of geographically connected properties is identified for redevelopment. Typically, each property is individually owned.

[2] - LAND COOPERATIVE FORMED

Property owners assemble their properties, creating a jointly owned land cooperative. Ownership percentage is based on property equity. 

[3] - LAND REZONED

The land cooperative is rezoned into a mixed development. Land that will remain for the owners' residential use is delineated from commercial land, which will be ground leased to an investor. 

[4] - CONDOMINIUM BUILT

Property owners engage an investor to finance and build a multi-family condominium for their personal use, in exchange for a "no fee"ground lease on the commercial land for a number of years.  

[5] - GROUND LEASE BEGINS

The investor builds new commercial buildings on the land which are owned 100% by the investor. Once the "no fee" ground lease ends, the investor pays a ground lease to the original property owners. Once the ground lease expires, all improvements to the land, including the commercial buildings, belong to the original property owners.  

CONTACT

Changing Ground Project

c/o FJC

520 Eighth Avenue, 20th Floor

New York, NY 10018

United States

Email: info@changingground.org

Tel: +212-710-5617

Fax: +212 714-0303

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Changing Ground Project is fiscally sponsored by FJC, a 501c3 public charity. As such, all donations are tax deductible to the extent allowed by law. 

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