CITY OF TUCSON SUCCESSFULLY COMPETES FOR $2.5M IN LATEST ROUND OF LOW-INCOME HOUSING TAX CREDITS TO CREATE MORE AFFORDABLE HOUSING
This latest award brings the total number of affordable housing units supported by state LIHTC in Tucson to 188.
On Monday, June 2, the Arizona Department of Housing (ADOH) announced that the City of Tucson successfully competed to receive $2.5 million in LIHTC credits that will result in approximately $20 million in private investment to build 59 new apartments in the second phase of Amazon Flats on West Miracle Mile. This LIHTC is the third tax credit granted to the City’s Housing and Community Development Department (HCD) in four years to build affordable housing as part of the City’s Housing Affordable Strategy for Tucson (HAST).
Low-Income Housing Tax Credit (LIHTC) allocations provide critical support for affordable housing development.
“The $2.5 million dollars in low-income housing tax credits will create 59 additional units of permanent supportive housing to bring stability to people and prevent homelessness,” said Tucson Mayor Regina Romero. “This will offer families a place to live and access to the resources they need to thrive. Thank you to Arizona Governor Katie Hobbs for investing in solutions that are helping cities like Tucson address the root causes of unsheltered homelessness. This investment will be a positive catalyst for people’s lives and will be a beautiful addition to the Thrive in the 05. Delivering results like these is why we created our Housing Affordability Strategy for Tucson,” said the Mayor.
Once Amazon Flats is completed, there will be 89 total living units, some of which will be used to house Tucson House residents while the Tucson House undergoes complete renovation as part of the CNI plan. Amazon Flats will also house people who have previously experienced homelessness.
Amazon Flats, at 1135 W. Miracle Mile on the site of the former Amazon Motel, is part of the City’s Choice Neighborhoods Implementation (CNI) plan. In July 2023, the City of Tucson was selected to receive a $50 million CNI grant from the U.S. Department of Housing and Urban Development (HUD) for the Thrive in the 05 Reinvestment Initiative.
El Pueblo Housing Development, the City of Tucson’s non-profit, is the affordable housing developer of Amazon Flats and is partnering with Gorman & Company. The new construction is the second phase of Amazon Flats; the first phase is currently under construction which includes renovating the existing Amazon Motel.
HCD Director Ann Chanecka said this new LIHTC award is a testament to the vision and energy of City leadership and HCD staff.
“This latest state tax credit is a credit to the City of Tucson’s efforts to create viable and much needed affordable housing for Tucson residents. HCD staff has been diligent and focused on creating competitive grant applications and housing proposals and the LIHTC awards in the past three years demonstrated that we are moving forward. In addition, this award is made possible by ADOH’s commitment to the Choice Neighborhoods program, and for that I am very grateful to the leadership of ADOH Interim Director Ruby Dhillon-Williams and Deputy Director Joan Serviss. The Choice program is estimated to bring in over $334 million in public, private, and non-profit investment in the Thrive in the 05 and continued support from the State of Arizona is critical to the success of the initiative,” Chanecka said.
Last year the state awarded the City of Tucson a LIHTC allocation to build 66 affordable housing units on North Stone Avenue. Sugar Hill on Stone affordable housing development is expected to begin construction next week.
In 2022, HCD received a LIHTC allocation to build Milagro on Oracle, a 63-unit housing project for older adults. Milagro on Oracle, built on the site of the former No-Tel Motel, is the City of Tucson’s first project by El Pueblo Housing Development.
In addition to the City’s LIHTC award, three other housing projects in Pima County received tax credits. COPE Community Services will construct Shasta Apartments, 100 studio units at 855 West Prince Rd. The apartments will serve seniors 62 and older. And the Tohono O'odham Nation received awards for two projects for a total of 44 units.
Housing Affordability Strategy for Tucson
Amazon Flats, Sugar Hill on Stone, Milagro on Oracle, and the renovation of the 17-story Tucson House, are part of the City’s Housing Affordability Strategy for Tucson adopted by Tucson Mayor and Council in December 2021. The 10-point roadmap lays out a comprehensive strategy to increase investment in housing affordability that aligns with other important priority areas such as climate resiliency and advancing social equity.
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