Phoenix/ Real Estate & Development
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Published on June 11, 2024
Tucson Secures $2.5 Million in Tax Credits for New Affordable Housing Units in the Thrive in the 05 InitiativeSource: Unsplash/Acton Crawford

The city of Tucson has been granted a significant financial boost aimed at tackling the persistent issue of housing affordability. In an official press release, it was announced that $2.5 million in LIHTC funding will be earmarked for the development of 66 new affordable housing units on North Stone Avenue, a move that aligns with the City's Housing Affordable Strategy for Tucson (HAST). The Low-Income Housing Tax Credit (LIHTC) recently secured by the Tucson Housing and Community Development Department (HCD) represents the second such infusion in two years to facilitate residential projects under the city's affordability strategy.

The forthcoming project dubbed Sugar Hill on Stone is poised as a pivotal component of the Thrive in the 05 initiative, entailing a comprehensive approach to amplify both public and private investment within a 2.3 square mile area circumscribing Oracle Road and Miracle Mile—this project stands as a symbolic gesture of commitment by city officials to honor promises made to residents. "This is what we promised people we would do, and we are delivering. My priority has been to aggressively pursue LIHTC funds and create more housing opportunities that people can afford," said Tucson Mayor Regina Romero, as per the City of Tucson's official news release.

The Sugar Hill on Stone complex will include a mix of one, two, and three-bedroom units across multi-level structures and aims to cater specifically to families with amenities such as a playground, multipurpose rooms, and proximity to parks and educational facilities. "HCD is very excited for this tax-sourced allocation, Sugar Hill on Stone is an essential asset embedded within our Choice Neighborhoods Housing Strategy," Ann Chanecka, Director of HCD, shared the sentiment in her remarks conveyed through the same news release.

Historically resonant, the project draws its name from Tucson's Sugar Hill, a neighborhood once a haven for African-American families post-World War II, the namesake speaks to the city's broader commitment to remembrance and social equity, together with the location itself once known as the site of the former Bum Steer Nightclub, community members were those who suggested the name to pay homage to their city's heritage. Commending the recent tax credit allocation, Ward 3 Council Member and Vice Mayor Kevin Dahl addressed the urgency and aptitude of the decision by stating, "This allocation of tax credits will allow the city to move forward, working with a private partner, to build much needed affordable housing at an ideal location, where the need is great," as stated by the City of Tucson.

Phoenix-Real Estate & Development