TEMPE, AZ — In an effort to provide affordable housing units, Tempe-based Newtown Community Development Corp. teamed up with Phoenix-based 180 Degrees Design + Build to develop a community of micro homes in Tempe.
These 600-square-foot homes were designed to afford first-time homebuyers the dream of home ownership. Those low-wage earners who qualify for subsidies could pay as little as $170,000 to own a home.
The homes are offered at a time when Phoenix home price growth continues to top the nation.
The community of 13 homes is under construction and is expected to be completed by October, said Stephanie Brewer, executive director of Newtown CDC.
As a Community Land Trust, Newtown CDC is able to keep the land while selling the structure to a homeowner.
"We would never be able to produce affordable housing if you had to pay for the land," she said. "The cost of the land is too high."
When a homeowner is ready to sell the house back to Newtown CDC, the homeowner gets 25% of appreciation in addition to the price of the home sold, Brewer said.
"They're building wealth," she said.