Newtown Community Land Trust (CLT)
A Community Land Trust (CLT) is a non-profit organization that creates permanently affordable housing by purchasing or developing homes which are then sold to low- and moderate-income households. Newtown's CLT was founded in 2001 and is the largest in Arizona, with more than 150 homes across Maricopa County and more added every year.
Affordable housing helps create more prosperous families and stable neighborhoods. Homeownership not only leads to increased family wealth but also higher educational attainment, better health, and reduced reliance on government assistance, and CLT homeowners are less likely to default on a mortgage or lose their homes in a foreclosure.
How a CLT Works
Newtown uses grant funds from local cities or counties to buy or build houses, then sells each house to a qualified family or individual at below-market value. To keep the price low, buyers pay only for the house, while the CLT retains ownership of the land, which Newtown leases to the homeowners through a low-cost, 99-year renewable lease. This allows families to enjoy all the benefits of homeownership, while the CLT preserves the initial public investment and keeps the resale price low for future homebuyers.
If a CLT homeowner ever wants to sell, Newtown will repurchase their house at a price that allows the seller to gain equity while keeping the property affordable for the next buyer. We keep paying it forward!
Benefits of a CLT Home
- Affordable: Newtown sets the sales price based on a monthly payment that you can afford.
- Quality: Newtown refurbishes each home before reselling it, making sure it's move-in ready.
- Support: Newtown provides homebuyer education, financial coaching, purchase assistance, and ongoing support including zero-interest loans and a tool library for home repair to help ensure your success as a homeowner.
Newtown's CLT program is designed for prospective homebuyers who meet the following qualifications:
1. You are a first-time homebuyer or have not owned a home in the past 3 years, or a) You are a single parent who has only owned a home with a former spouse while married; or b) You are a displaced homemaker and you have only owned a home with a spouse.
2. Your gross household income is less than 80% of the HUD Area Median Income (AMI) adjusted by family size. Current income limits are listed here.
3. You qualify for a conventional mortgage through a participating lender. Newtown will help you find out if you qualify and, if you don't, we can help you create an action plan so you can meet the requirements in the future.
4. You must contribute at least $2,500 toward down payment and closing costs, but you may be able to apply down-payment assistance funds toward these costs. Newtown will help you determine if you are eligible for down-payment assistance.
While you must meet all of these qualifications at the time of closing, there is no penalty if your income or household size changes after closing.
To Apply for Newtown's CLT Program
If you think you may qualify for the CLT Program, please complete an application form. You may submit the form electronically or you may print it and submit it by mail.
We will contact you within a few days to schedule a meeting with a Newtown Housing Counselor.