Devolution refers to shifting responsibility of forest management to community organizations, in contrast to public decentralization to local state institutions. Research on community forestry policies can aid in determining how property rights affect local governance structures. The objective of this paper is to analyze the influence of property rights on the application of devolution policies related to community-based forestry. The study included four sites in non-indigenous Honduras where forestry cooperatives were operating. Common property theory was used to interpret data gathered via value chain and sustainable livelihoods approaches. Results show that historical policy changes regarding land tenure recognition have affected community-based forestry initiatives. Recent policies have focused on the promotion of community-based forestry, which has resulted in an expansion in the area of devolved land. Nonetheless, de facto land tenure arrangements continue despite formal assignment of land. It was also found that these initiatives have been developed in areas where agricultural activities are less important. Strategies for inclusion of communities in forest management should not be based solely on the recognition of formal property rights. De facto ownership should also be considered when it is respected among local residents, as part of a local governance approach to forest management.