Community Land Trust (CLT) Program
New - Chandler Community Land Trust Program
- Affordable CLT homes are now available in Chandler. Qualified buyers help select the house they want to purchase. After Newtown completes extensive renovation the buyer purchases the house through the CLT.
- The target area for this program has been expanded
click here for a map
- Income limits - household income cannot exceed 120% AMI (see table below).
- This program is made possible by support from the City of Chandler and funding through the Neighborhood Stabilization Program (NSP).
Tempe Community Land Trust Program
- Newtown currently has funding for 8 CLT homes in Tempe.
- Qualified buyers help select the house they want to purchase. After Newtown completes extensive renovation the buyer purchases the house through the CLT.
- The target area is anywhere in Tempe.
- Income limits - household income cannot exceed 80% AMI (see chart below).
- This program is made possible by support from the City of Tempe and funding from the Maricopa HOME Consortium and the Arizona Department of Housing.
Attend a CLT Orientation to learn more about affordable CLT home-ownership opportunities. Orientations for both programs are held in Chandler and Tempe (attend either location for both programs).
CLT Orientation Schedule and Locations:
| Location | Date | Time |
|---|---|---|
Tempe / Newtown office |
Jan. 26, 2010 |
6:00 - 7:30 PM |
Chandler / TBD |
Feb. 4, 2010 |
6:30 - 7:30 PM |
Tempe / Newtown office |
Feb. 18, 2010 |
6:00 - 7:30 PM
|
Chandler / TBD |
Feb. 25, 2010 |
6:00 - 7:30 PM |
Chandler / TBD |
March 11, 2010 |
6:30 - 7:30 PM |
Tempe / Newtown office |
March 18, 2010 |
6:00 - 7:30 PM |
Chandler / TBD |
April 1, 2010 |
6:00 - 7:30 PM |
Call to register - space is limited
Phone: (480) 517-1589
TTY: 711
Income Limits:
| Family Size | 1 Person | 2 Persons | 3 Persons | 4 Persons | 5 Persons | 6 Persons |
| 80% AMI | $36,900 | $42,150 | $47,450 | $52,700 | $56,900 | $61,150 |
| 120% AMI | $55,320 | $63,240 | $71,160 | $79,080 | $85,440 | $91,680 |
Potential buyers must meet income criteria and complete homebuyer education, pre-purchase counseling, and a CLT orientation through Newtown.
What is a community land trust?
- Newtown’s Community Land Trust (CLT) program provides access to homeownership for people who are otherwise priced out of the housing market.
- CLT homes are sold for a price well below the prevailing market.
- CLT homes provide greater security than renting.
- CLT owners benefit from stable monthly payments, security from eviction, and have an opportunity to build equity through homeownership.
At the time of sale, the CLT buyer purchases the improvements only (the house) and enters into a 99-year renewable ground lease for the land. Newtown holds the land in perpetuity. The ground lease contains resale restrictions that require if the home is sold it must be sold to another income eligible buyer.
Permanent affordability is maintained through a shared equity provision that limits the amount of appreciation the seller may take and establishes an affordable sales price. The ground lease also requires owner-occupancy and gives Newtown a right of first refusal.
Newtown’s CLT program is designed to balance the interests of individuals and the larger community. CLT homeowners have an opportunity to build wealth through homeownership. At the same time, the community’s investment (subsidy) is protected; it is retained in the property and a long term a community asset is developed.
Through the CLT program, a stock of permanently affordable homes is created and the homes stay affordable for future generations.
In addition to meeting income eligibility requirements, all CLT homebuyers must successfully complete Newtown’s Homebuyer Assistance and Individual Development Account Programs and attend a CLT Orientation. To date, no Newtown CLT homeowners have defaulted on their mortgages.
Newtown's Community Land Trust program benefits both homebuyers and the community:
- Provides qualified buyers an opportunity to have a safe, decent and affordable place to call home.
- Security – advantages over renting, fixed monthly payment.
- A chance to build substantial assets through affordable monthly payments.
- Community stability is enhanced - homeownership is expanded, owner-occupancy is protected.
CLT homes must be owner-occupied.
- The community's investment is protected - initial subsidies are retained in the properties and are likely to increase in value.
CLT Works in Tempe...
Demonstrating the Community Land Trust (CLT) model works, Newtown completed its first resale in 2007. The original owners received a decent return on their investment and the home was affordable for the next family.
The original CLT owners earned approximately $30,000 in equity and appreciation which they used to buy a larger market-rate home. Their original investment was $3,000. They expressed their appreciation and gratitude to all of Newtown's staff for the opportunity provided by CLT homeownership.
The new owners were able to buy a $225,000 home near downtown Tempe for $145,000.
Newtown maintains a list of qualified applicants for CLT homes. Please contact Newtown for an application or for more information.
Newtown CLT Program
(480) 517-1589
Subsidy Retention versus Subsidy Recapture. Home prices are increasing faster than household incomes. The subsidy amount required to make a home affordable in five years will be significantly more than the amount of subsidy required to make a home affordable today.
If the subsidy is recaptured (paid back by the buyer at time of resale), a significant additional subsidy would be required to create another affordable homeownership opportunity. The Community Land Trust Program allows the subsidy to be retained for future income qualified buyers.
Newtown provides accessibility, participation, services and employment for all eligible persons regardless of race, color, religion, sex, handicap, familial status or national origin. Reasonable accommodations will be made upon request.
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