Community Land Trust Program

Crestview by Capstone HomeThe Community Land Trust Program offers affordable ownership for low to moderate income households through a shared equity homeownership model. In exchange for an affordable purchase price, homeowners agree to limit their equity so that the next qualified buyer can benefit from an affordable sales price. This agreement is secured in a ground lease between the City and the homeowner. Interested buyers must meet certain requirements to qualify for purchase.

Eligibility requirements:

  • At least 18 years old
  • US citizen or registered alien
  • Current resident or employment commitments within the Flagstaff metro area.
  • Gross household income under 100% AMI for new construction, 125% AMI for resale units
  • Sufficient income and creditworthiness to qualify for a mortgage.

Program details:

  • Homeowner obtains a mortgage for the home, and the land underneath is leased from the City to the homeowner through a 99-year renewable ground lease with a $30 - $50 monthly fee. 
  • The ground lease establishes a homeowner's rights of use and allows for the home to be passed on to heirs.
  • The resale price of the home is restricted to maintain permanent affordability, making the home affordable for the next buyer.
  • Sellers are limited to 25% equity upon sale of a land trust home; the remaining equity stays within the home as a public investment in a permanently affordable housing.

To learn more about the land trust program review the Land Trust Brochure (PDF). The Resale Formula (PDF) explains the equity restriction with an example sale scenario. All interested homebuyers must complete the Homebuyer Application (PDF). The City of Flagstaff partners with Housing Solutions of Northern Arizona (HSNA), a local non-profit, to review applicant eligibility. Although applicants must qualify for their own mortgage, down payment assistance is allowed to help defray costs. More information about Down Payment Assistance is available through HSNA, who administers down payment assistance to eligible buyers.  

New Affordable Homes Available 

New construction homes are currently available for sale in Flagstaff. Eligibility requirements described above apply. For more information about new affordable developments contact jmikelson@flagstaffaz.gov.