$2.5M Boost Pushes Tucson Mixed-Income Housing Project Forward

TUCSON, AZ — A long-vacant lot at one of central Tucson's busiest intersections is about to transform into a major mixed-income housing development, thanks to $2.5 million in state tax credits awarded this month.

The Stone and Speedway development, planned for the southwest corner of Stone Avenue and Speedway Boulevard, was awarded Low-Income Housing Tax Credits by the Arizona Department of Housing on June 5.

The funding will support Phase I of the project, which calls for 44 affordable units and 12 market-rate units on a city-owned parcel across from Pima Community College's Downtown Campus.

For neighbors and community advocates who have watched the site sit empty for years, the award marks a turning point.

"Transforming this long-vacant property has been a priority since my time as Council Member representing Ward 1," said Mayor Regina Romero, who called the tax credit award a major win for Tucson residents.

Vice Mayor Lane Santa Cruz, who has championed the project more recently, echoed that sentiment. "This award is the result of years of work by residents, neighborhood leaders, community partners, development partners and city staff," Santa Cruz said.

What's Being Built

The full two-phase development will bring 119 residential units to the site, with roughly 80 percent designated as affordable housing and 20 percent at market rate. Affordable units will be available to households earning up to 50 percent of the Area Median Income.

The three-building project, designed by Tucson-based architecture firm Poster Mirto McDonald, will include a five-story building along North Stone Avenue, a four-story building along West Speedway Boulevard and a two-story transition building along North 9th Avenue near the Dunbar Spring neighborhood.

Planned amenities include in-unit washers and dryers, community and mixed-use space, bicycle parking, landscaped gathering areas, public art, solar panels and 95 on-site parking spaces across both phases.

Part of a Larger Transformation

Stone and Speedway is the fifth City of Tucson-associated project in the Thrive in the 05 Redevelopment Target Area to receive Low-Income Housing Tax Credit funding in the last five years.

The development also represents the final two phases of the Choice Neighborhoods Implementation Housing Strategy, an effort backed in part by a $50 million federal HUD grant awarded in 2023.

The site sits along Tucson's planned Bus Rapid Transit corridor, making it a key piece of the city's broader vision for the neighborhood.

Gorman & Company served as the principal applicant for the tax credit award. Construction on Phase I is expected to begin in summer 2027 and wrap up in winter 2028. Phase II is anticipated to start in spring 2028 and be completed by fall 2029.

Total development cost is estimated at $63 million, according to city officials.