By Roland Murphy for AZBEX
Eight new multifamily developments totaling 611 units were recommended for Phoenix City Council funding approval under the federal HOME Investment Partnerships Program by the Council’s Economic Development and Equity Subcommittee in its meeting Wednesday morning.
The $7.75M in requests were part of the Subcommittee’s consent agenda. Council has discretion to loan and disburse up to $8M from the U.S. Department of Housing and Urban Development under the program. Each of the eight projects has at least a portion of its unit count designated as affordable.
Only two of the projects are sufficiently far along in the planning and submittal process to be included in the DATABEX project database. We have established a watch list and will add projects as they progress through their design and approval processes.
The first project is The Reserve at Thunderbird, a 242-unit development proposed for 9.5 acres at 30th Avenue and Thunderbird. The $1M request covers funding for Phase II of the development, which will consist of 134 units, 78 of which are income-restricted, leaving 56 at market rate. Phase I is planned for 98 income-restricted and 10 market rate units.
The plan review request submitted for the project last November lists 13 buildings in total for the 242-unit development, indicating the two phases may be developed concurrently. According to the Subcommittee agenda, “Other proposed funding for this project includes permanent debt financing, 9% LIHTC equity, solar credits, additional gap funding, and a deferred developer fee.”
The second database project is Pueblo Apartments, a 161-unit development planned near 3rd Avenue and Broadway Road. Developer Chicanos Por La Causa requested $1M from the program. All the units will serve households earning 60% of the Area Median Income or less, and 11 units will be designated for residents earning less than 40% of AMI.
Six Other Projects Recommended
Six other projects were recommended for funding approval.
Garfield II, 1510 East Portland Street., a 60-unit proposal targeting 60% of AMI and featuring 11 units dedicated for “frail elderly and disabled” tenants, requested $1M.
Osborn Pointe, a 48-unit development planned at 3406 North 3rd Street., also requested $1M. According to the project description, “All units will be designated to provide shelter to homeless individuals and families with incomes at or below 40% of AMI with 11 units reserved as HOME restricted units serving the homeless population.”
The 68-unit Acacia Heights III, proposed for 4747 North 7th Avenue, requested $1M and will serve residents with household incomes at or below 60% of AMI. Eleven units will go to households earning less than 40% of AMI.
The 20-unit Trellis @ Cholla proposal, 1723 West Cholla Street., also requested $1M in development assistance and will target households earning below 60% of AMI, with 11 units targeted for residents earning less than 40%.
Also requesting $1M is Bret Tarver Terrace, planned for 3101 West McDowell Road. The 60-unit development will target 60% of AMI households, with six units dedicated to 40% or less.
Lastly, the 60-unit Highbridge Apartments development, 3248 West Indian School Road requested $750K for a 60-unit project targeting households earning less than 60% of AMI and featuring four units dedicated to Veteran households earning less than 40%.
All of the projects will provide some type of supportive services (financial planning, independent living services, counseling, etc.), and each also seeks a percentage of equity through Low-Income Housing Tax Credits.
According to the Subcommittee agenda, “Project awards are contingent on full underwriting, environmental release of funds, commitments of other financing, availability of federal funds and City Council approval. The overall loan structure will be consistent with the Housing Department’s Underwriting Guidelines for affordable rental housing projects.”
The requests will go before the full Phoenix City Council for consideration and approval April 20th.
