The Tempe Coalition for Affordable Housing has paid $2.77M for a vacant 1.27-acre parcel on East Apache Blvd. near McClintock Drive.
The group plans to eventually develop a multi-story multifamily development on the site for low-to-moderate-income residents.
While there are no drawings or specific plans for the eventual development, officials expect 40-50 units will ultimately be built.
The Coalition currently has approximately 60 properties under management. The Apache location was its first vacant lot buy, since it typically purchases existing housing, improves it, and rents it out as a permanently affordable property.
Funding for the purchase was provided through Tempe’s Hometown for All program.
No developer has been chosen, and no construction funds have been appropriated. Coalition representatives said the group is currently working on a request for proposals to solicit ideas from developers.
The development will probably be built with Low-Income Housing Tax Credits, and representatives anticipate the final costs to be between $80M and $100M. The most likely scenario would involve the future developer procuring the tax credits and building the units while executing a ground lease for the land. (Source)