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In pursuit of affordable housing, the Sustainable Urban Development Act of 2021 contains regulations for community land trusts (CLTs) in Peru. This study aims to assess whether the CLT model can be an effective tool for low-income housing generation in the Peruvian context.

This study draws upon information collected from qualitative research and official statistical data to identify the main problems in the Peruvian housing sector. The authors gathered evidence from specialised literature to examine the benefits and drawbacks of CLT implementation and functionality as experienced in the USA, England and Canada in contrast to Puerto Rico and Brazil. To assess the potential effectiveness of the CLT model in Peru, the results from the examination of both groups of countries are analysed and contrasted with the evidence from the Peruvian experience.

Through micro-scale interventions in places with a consolidated sense of community, the CLT model can be an effective tool for affordable housing generation. However, no robust evidence suggests that the CLT model could be an effective tool for large-scale intervention in cities with disorganised and accelerated growth. Moreover, the level of housing affordability defined by the CLT model may be insufficient for people from the lowest-income percentiles.

Peruvian CLT adaptation will require a shift in individual property mind-sets. Furthermore, the model should be enhanced by governmental support through public subsidies and backed by mortgage loans and land grant programmes.