Newtown Community Land Trust (CLT)
Newtown’s Community Land Trust (CLT) is the largest in Arizona and includes homes across Maricopa County, with more added every year.
- Newtown uses public funds to either build a new house or to purchase and renovate an existing house.
- A family or individual purchases the house, not including the land, for below market value.
- Homeowners are free to decorate their homes as they wish, and may even rent individual rooms as long as the homeowners still live there as well.
- The homeowners lease the land from Newtown in a low-cost 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 all CLT land in trust, monitors the condition of CLT properties, and enforces the resale restrictions that 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 can build wealth through ownership and equity, but agree that if they decide to move, they will sell the home back to Newtown at a restricted price to keep it affordable for future buyers.
- Newtown repurchases any CLT homes that the owners wish to sell, repairs or renovates them as needed, then resells them to other eligible buyers.
Newtown provides ongoing support to CLT participants to help ensure their success as homeowners. We offer:
Advice and referrals for home maintenance or renovation projects
A tool library with basic tools for landscaping, home maintenance, and repairs.
Zero-interest loans for home repairs.
Housing counseling and financial coaching, which includes help with refinancing and foreclosure prevention. No CLT homes have been lost to foreclosure!
Resale management to help when CLT homeowners decide to sell their homes.
Since 2001, Newtown has sold more than 140 individual CLT homes. We have re-purchased over 20 of those homes back from CLT owners and resold those homes to new eligible buyers. The net proceeds to the sellers has averaged $30,000, and 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: Homebuyer education, assistance with initial purchase, and on-going support helps 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.
- You must either be a first-time homebuyer or have not owned a home in the past 3 years. You may also qualify if:
a) You are a single parent who has only owned a home with a former spouse while married; or
b) You are an individual who is a displaced homemaker and you have only owned a home with a spouse.
- Your gross household income must be less than 80% of the HUD Area Median Income (AMI) adjusted by family size. See table below.
- You must be able to qualify for a conventional mortgage through a participating lender. Typically, this requires a steady income, satisfactory credit, and no more than 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.
- You must contribute at least $2,500 toward down payment and closing costs.
- You may use Individual Development Account (IDA) or WISH 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|
Qualifications are determined at closing when you buy your house. After closing you are free to increase your income or change household size.
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 to schedule a meeting with a Newtown Housing Counselor. You can complete and submit the form electronically or you may print it and submit it by mail. Important: You must download and save the form before you fill it out.
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 contact you to confirm that you meet the eligibility requirements.
Learn more about Newtown's Community Land Trust.