Carol Sparks never believed she could afford to buy a home in Tempe.
But the groundbreaking of a city-subsidized home Friday near downtown will finally allow Sparks, 57, to make her dream a reality, she said.
Sparks will own one of three permanently-affordable houses being built by Tempe and a local non-profit organization.
A permanently-affordable home is a house kept far below the market price for low- and moderate-income people.
"Until we actually put those shovels in the ground this morning, you know it's happening, but it doesn't feel real," Sparks said. "It's just a whole different feeling today."
Each 1,500-square-foot home sells for $155,000, a price that could be affordable for many low- and moderate-income workers, said Allen Carlson, executive director of NewTowN CDC, the nonprofit community development corporation that headed the development of the homes.
If the city can't provide reasonably-priced housing, many people might have to move to communities with cheaper homes, Carlson said.
This could negatively impact business, as employers considering a move to the Valley often analyze the availability of affordable places for employees to live, Carlson added.
Tempe purchased the land for NewTowN corporation, and the land's cost is subtracted from the price of the home. The city pays for the land using federal grants designed to help communities develop low- and moderate-income housing.
This immediately knocks about $95,000 off the $250,000 average price of a Tempe home, Carlson said.
"It remains far below the market price of this house," he said.
The Community Land Trust concept could provide a model for affordable housing in Tempe, said City Councilman Ben Arredondo.
In this model, as a property is sold and its value appreciates over time, only a small portion of this increase is added to the home's future price, he added.
NewTowN plans to renovate five existing homes in Tempe this year and construct one more new house, Carlson said.
The project's scope is restricted by low funds, the price of land and the lack of available lots due to Tempe's land-locked nature, he added.
NewTowN hopes to roll out a similar pilot program for condominiums and town homes next year, Carlson said. These properties are generally less expensive to acquire and more cost-effective to renovate than single-family homes.
Sparks said without this project, constantly rising house prices would have made it impossible for her to become a homeowner. She said she hopes to move into her new house in May.
"I am glad God led me in this direction," she said. "Everything's falling right into place."
Reach the reporter at grayson.steinberg@asu.edu.
