Arizona Department of Housing Suspends Workforce Housing Funds, Leaving Developers and Applicants in Uncertainty

The Arizona Department of Housing has unexpectedly stopped a major funding program for workforce housing. This program, which provided 4% Low-Income Housing Tax Credits (LIHTC) for Workforce Housing Units, was first announced on January 11, and had several updates, with the latest on August 5, before being abruptly canceled.

The cause of the suspension isn't clear, and department officials haven't explained why it happened. According to the Arizona Department of Housing, the Notice of Funding Availability (NOFA) for this program is suspended "indefinitely." This sudden freeze has left developers and potential applicants uncertain, as many were relying on these funds for housing projects aimed at Arizona's middle-income workers.

All application fees that have been collected in relation to the NOFA will be returned to the applicants, assuring that no financial foothold will be lost due to the suspension. In a direct quote from the department's notice, "All application fees received under the NOFA will be returned," the statement obtained by the Arizona Department of Housing. It's unclear when or if the program will be reactivated, or what impact the lack of funds will have on the state's housing market.

Melanie Brewer, the Rental Programs Administrator at the Arizona Department of Housing, will be the point of contact for those seeking further information. Those with concerns or queries are directed to reach out via either email at [email protected] or by calling 602.771.1031.