By Roland Murphy for AZBEX
On March 11, the Payson Town Council approved a motion to enter into a development agreement with Woda Cooper Companies for the creation of Union Park Lofts, a 74-unit affordable housing community planned for 2.08 acres at 409 N. Beeline Hwy.
The motion was approved on a 5-0 vote with two members absent.
The four-story apartment building will be comprised of 15 one-bedroom, 43 two-bedroom and 16 three-bedroom units, according to the submitted site plan. A total of 116 parking spaces will be provided, including four ADA-accessible spots.
The property will also have an on-site clubhouse, property management and outdoor amenity space, according to Town materials.
The developer plans to pursue Low-Income Housing Tax Credits from the Arizona Department of Housing. According to the staff report outlining the project requests, “Up to only one project is funded per county from the Arizona Department of Housing for the Balance of the State (rural) which includes 13 Counties. Balance of State funding is considered for any county in Arizona, excluding Pima and Maricopa counties. ADOH only has to award up to 3 projects in the Balance of the State. Developers apply directly to ADOH.”
Woda Cooper Companies made requests of the Town to improve the projects’ chances of successfully applying for LIHTC funding. Those requests in support of the project consisted of:
- A $100K below-market loan,
- $50K in local fee waivers and
- A construction sales tax rebate of up to $1K/unit.
In comments after the presentation, Councilmembers noted there was precedent for granting the items, as similar project requests had been approved previously.
The loan would have a 15-year term at 3% interest. According to the Town’s explanation letter, “Repayment would be 25% of cash flow with a balloon payment at the maturity of the loan.”
The Town letter also explained, “This commitment is conditioned upon the receipt of a 2026 reservation of Section 42 9% Low Income Housing Tax Credits from The Arizona Department of Housing. Underwriting will continue to determinate the cost reasonableness of the development and to complete due diligence documentation. The development would be funded as a 2027 commitment. The Town’s participation is contingent upon completion of all necessary documentation to the satisfaction of the Town, compliance with all Federal and Town regulations and policies, and completion of a (U.S. Department of Housing and Urban Development) environmental review.”
Woda Cooper has an extensive history and has developed more than 365 communities in 18 different states. More than 120 of those developments have achieved Green Certifications under the National Green Building Standard. Union Park Lofts is planned as an NGBS Silver community.
Presentation materials reported Payson needs a total of 392 new housing units, split between 285 for-sale and 107 rental units by 2029. Union Park Lofts would contribute to achieving roughly 70% of the relevant goal. Average rent in Payson is reportedly $1,900, with 36% of local families earning “well below” the $55K annual income to comfortably afford average rent.
Woda Cooper Companies is the project owner. The design firm is HDJ (Hooker DeJong Architects).
