The Arizona Department of Housing has $24.5M for projects using Low Income Housing Tax Credits.
Funding is provided by the State and through the federal Housing Trust Fund. Qualifying projects can earn up to $2M each, according to ADH Director Tom Simplot. Funding had previously been restricted to nonprofits, but the program has been altered to allow applications from for-profit developers.
Residents must earn less than 80% of the Area Median Income and cannot be charged more than 30% of their total income in rent.
There are approximately 200 units coming online in Tucson as a result of the program. The recently completed Alborada Apartments on Grant Road filled all 63 of its units within 10 days of opening for lease, according to officials with developer La Frontera.
La Frontera is also building Gateway Apartments, a 120-unit senior-target development on Oracle Road.
The group is working in partnership with private developer Jason Hisley of The Hisley Group. Hisley acquires land for the developments, handles the funding paperwork, procures the permits and entitlements, builds the developments and then acts as property manager.