Clark County land trust aims to house ‘first-time homebuyers’

A community land trust will soon open applications for more than 200 homes for sale at below-market prices.

Clark County officials are launching a new housing initiative to help lower- and middle-income first-time homebuyers purchase houses at below-market rates. More than 240 homes will be made available through the program across two distinct regions.

During a recent weekly informational presentation, county staff outlined how the program will operate under a community land trust model, in which the trust owns the land while buyers purchase homes through a traditional mortgage. By removing the cost of land from the purchase price, officials say home prices will be significantly lower, including for future resales.

“It’s a 99-year ground lease with that community land trust,” said Margoth Tello, program director for the Clark County Community Land Trust. “The main thing it does is set resource restrictions, meaning, when it’s time to sell that home, you will be selling it to someone who qualifies for the program equally to how you qualify for the program.”

Slated as the first development, Rebecca Place in the northwest is expected to deliver 30 homes, while Cactus in the southwest is slated for 210 homes.

The program is for first-time homebuyers living or working in Clark County who haven’t owned a home or had a foreclosure in the past five years, have a steady income, savings for a down payment, and a minimum credit score of 640. Applicants must meet federal Area Median Income (AMI) guidelines, earning no more than 100% of AMI or $94,900 a year. Households must also earn at least 60% of the area median income, or $56,940 annually, to ensure mortgage affordability. 

The cost of homes, as outlined in the presentation, will be determined using a 30-year mortgage calculation. This pricing strategy is designed to limit buyers’ total monthly housing expenses—including taxes, insurance, and the Clark County ground lease fee—to roughly one-third of their income. The ground lease fee will cover the costs of community maintenance, including upkeep of dog parks and trails. 

The agreement also requires homeowners to live in the property. Other restrictions include limits on certain capital improvements, such as building a pool.

Applications for the first 11 Rebecca Place homes are expected to open around May. The application process includes attending a Community Land Trust orientation, completing a first-time homebuyer class offered through Clark County, and an online pre-application to determine eligibility. Next, prospects need to get pre-qualified by a lender. 

“We do have a list of preferred lenders,” Tello said. “There’s a lot of things that these particular lenders have agreed [on].”

The county has secured three lenders who have partnered on the project, agreeing to “favorable terms” for clients, she added. County staff will guide the applicants through the lender process. 

Once that’s finished, prospective buyers can submit applications for a home when the lottery window opens.

According to Tello, another trade-off is resale price restrictions, though homeowners still build equity that they can use for expenses such as college funds. 

“We do set who can qualify to buy your home and what the maximum resale price is,” she said.