In a move intended to spur affordable housing construction, the Glendale City Council has unanimously voted to approve waiving community development fees on projects that receive Arizona Department of Housing tax credits.
Fees can range from approximately $300K to $1M. City officials say the goal is to help developers cover funding gaps in financing and building their projects.
Fees for projects not receiving ADoH credits may also be waived if they meet affordability requirements and enter into an approved development agreement.
Glendale will monitor the impact of the waivers on City finances, since development fees go into the general fund, and may reassess the program if there is a marked difference in revenue. However, given the small percentage of affordable developments as part of the overall construction mix, the waivers are not expected to have a major impact.
Affordability designations generally have a 30-year lifespan, and many properties in Glendale are approaching their deadline, after which leases will revert to market rates. Officials hope the program will incentivize new developments to enter the pipeline to offset those that are aging out.
There are currently seven affordable housing projects in the Glendale development pipeline. (Source)