What We Do

Community Land Trust

Newtown Community Land Trust (CLT)

Created in 2001, Newtown’s Community Land Trust is the largest in Arizona and includes over 140 homes in Chandler, Glendale, Scottsdale, and Tempe. 

Newtown’s Community Land Trust (CLT) works like this:

  • A family or individual purchases a completely renovated house (not the land) for below market value.
     
  • The homeowners lease the land from Newtown in a long-term (99-year), renewable lease that requires owner occupancy and contains resale restrictions and other provisions that ensure the homes are affordable to future eligible buyers.
     
  • Newtown holds the land in trust, monitors the condition of the properties and the resale restrictions that help ensure the homes remain affordable for future buyers.
     
  • The public investment used to make the homes affordable stays with the land and is protected.
     
  • The homeowners agree to pay it forward - to sell the home at a restricted price to keep it affordable for future buyers, and they also have an opportunity to build wealth through homeownership.

Stewardship

Stewardship is one of the keys to success for CLTs.  Newtown provides ongoing support to its CLT owners to help ensure their success as homeowners which includes:

  • Advice / referrals for home maintenance or renovation projects.
  • A tool library - basic tools for landscaping, home maintenance and repairs.
  • Zero interest loans for home repairs - over $50,000 in loans provide.
  • Housing counseling / financial coaching - includes help with refinancing and foreclosure prevention - no CLT homes have been lost to foreclosure.
  • Resale management.

Newtown has re-purchased over 20 homes from CLT owners, completed repairs / renovations as needed, and resold to eligible buyers.  The average net proceeds to the sellers were around $30,000 and at the same time the homes remained affordable to the new buyers.

Why Buy a CLT Home

  • Affordable – sales price is based on a monthly payment that is affordable for you.
  • Quality – extensive professional rehabilitation is completed before you buy the house.
  • Support – help with initial purchase & on-going support to help ensure your success as a homeowner.

How to get started:

First review the eligibility and program requirements listed below.  If it looks like you meet the requirements, the next step is to submit your application.

  1. You must be a first-time homebuyer* (haven’t owned a home in the past 3 years). You may also qualify if:

    a) You are single parent who has only owned with a former spouse while married; or 

    b) You are an individual who is a displaced homemaker and has only owned with a spouse.

    * Note: this may not be a requirement if we are reselling an existing CLT home. 
     
  2. Your gross household income must be less than 80% of the HUD Area Median Income (AMI) adjusted by family size. For example, the annual gross income (before taxes) for a family of four must be less than $58,300.  See table below.
     
  3. You must be able to qualify for a conventional mortgage through a participating lender. Typically, this requires a steady income, satisfactory credit, and a modest amount of consumer debt. Newtown will help you find out if you qualify.  Even if you don’t qualify now, we can help you create an individualized action plan so you can qualify.
     
  4. You must contribute at least $2,500 toward down payment and closing costs.
     
  5. You may use Individual Development Account (IDA) funds to help buy a Community Land Trust home.

Income limits: FY 2019 Maricopa County – Phoenix-Mesa-Scottsdale MSA – effective 4/24/19.

Family Size 1 Person 2 Persons 3 Persons 4 Persons 5 Person 6 Persons
80% AMI $40,850 $46,650 $52,500 $58,300 $63,000 $67,650

Qualifications are determined at closing when you buy your house. After closing you are free to increase your income or change household size.

Application Process

Complete an application form and submit it to Newtown.  Please answer all of the questions and provide all of the information requested.  We will review your application and contact you if we have questions and to schedule a meeting with a Newtown Housing Counselor.  You can complete and submit the form electronically.  Important - before you fill out the form, you must download it and save it first. 

If you are applying for a specific CLT home that is listed for sale, do not pay the application fee until we review your application and tell you to pay the fee.  If it looks like you do not meet eligibility requirements, we will let you know. You can pay the online application fee online.

Application Form - click here

Pay Application Fee - click here