Tempe Invests To Expand Affordable Housing Options

Press release from the City of Tempe:

April 1, 2021

Tempe is making a $1.2 million investment to significantly expand affordable housing in the city through its Hometown for All initiative, focused on bringing as many as 325 rental units and 50 homeownership opportunities to city-owned lots.

Hometown for All, introduced by Mayor Corey Woods in December 2020, seeks to accelerate the growth of affordable and workforce housing in the city. That growth will happen in different ways, including working with partners to develop city property, acquiring new land for future development, and purchasing and rehabilitating individual properties.

The new investment, approved last week by the City Council, supports the first phase of site preparation work on five lots for projects along Apache Boulevard. The city is currently working with development partners to create affordable housing on four of the lots and will be seeking a partner for the fifth.

“This investment is a really critical step toward taking these vacant lots and turning them into hundreds of affordable rentals and homes for people who want to live here,” Woods said. “I couldn’t be more excited about the progress we have seen with Hometown for All. This is the first of many examples that prove what can be accomplished with a dedicated funding stream and a strong vision from the Council.”

For every development project built in Tempe, an amount equivalent to 50% of building permit fees paid to the city will be directed from the city’s General Fund to the nonprofit Tempe Coalition for Affordable Housing, which is affiliated with the City of Tempe Public Housing Authority. Through the initiative, the city is also providing guidelines for charitable contributions from developers and other entities to support affordable housing.

To date, the initiative has resulted in approximately $1.5 million for affordable housing, based on funds received and projections.

Hometown for All provides dedicated funding to expand affordable and workforce housing options and reflects the desire by Woods and Councilmembers to ensure that Tempe has a variety of housing types.

As part of the Hometown for All initiative, Tempe is prioritizing development of city-owned lots. The planned site preparation, which includes environmental, archeological, historic preservation and utility work, begins the process for getting the lots shovel ready for development.

This work also aligns with the Native American land acknowledgment statement recently approved by the Tempe City Council. This resolution commemorates the historical and cultural significance of the O’Odham and Piipaash and recognizes the historical significance in decisions made by the City of Tempe about land use. Read the city’s resolution.

The five lots vary in size and sit along Apache Boulevard, between approximately Rural Road and the Price Freeway.

A partnership with developer Artspace seeks to create approximately 200 affordable and workforce units on two lots. The focus will be on developing the first lot near Dorsey Lane and Lemon Street, with plans for nearly 70 affordable units. The second lot, near Dorey Lane and Apache Boulevard, will be developed with up to 140 workforce units.

Last week, the Council approved the development agreement with Artspace. The first phase of the project, at Dorsey Lane and Lemon Street, is dependent on the developer receiving federal funds through the Low-Income Housing Tax Credit program.

Tempe is working with developer Gorman & Company to build as many as 100 affordable and workforce units near Apache Boulevard and Lebanon Lane. That project includes two lots, one of which is the city lot.

The fifth lot, near Apache Boulevard and the Price Freeway, could include a mix of 150 affordable and workforce units along with 50 townhomes that provide affordable homeownership opportunities. The concept is still being reviewed and potential partners have not yet been identified.

Learn more about Hometown for All: tempe.gov/HometownforAll. Learn more about the city’s affordable housing efforts: tempe.gov/AffordableHousing.

This press release was produced by the City of Tempe. The views expressed here are the author's own.