Phoenix is setting up to tackle its affordable housing shortage with a new endeavor, joining forces with local school districts to acquire land for the development of low-cost housing units. The city council approved two purchase and sale agreements (PSAs) with Isaac and Alhambra School Districts to quickly transform ten acres of underused school land into housing that will remain budget-friendly for at least 40 years, according to a statement made by Phoenix's official newsroom.
The strategy involves the city purchasing 4.56 acres from the Isaac School District for $3.1 million and 5.54 acres from the Alhambra School District for $2.3 million. The city aims to immediately resell the properties so they can be developed into affordable, multi-family residences. In order to permanently ensure affordability, Phoenix will instantly impose a Land Use Restrictive Agreement (LURA) that mandates the land to be used specifically for affordable housing for a minimum of four decades.
This maneuver sidesteps potential legal snags under Arizona law, which restricts the sale or lease of school property unless it's for a public purpose and doesn't disturb regular school operations. "A recent housing needs assessment determined that Phoenix is short about 59,000 affordable and available units for low- and very-low income households at or below 50% of the area median income," Housing Director Titus Mathew said, as reported by the city's official newsroom. These purchases are fiscal alchemy, converting dormant assets into much-needed homes without any financial impact on the City's balance sheets.
The completed projects, dubbed Wild Rose Flats and Salamanca Square, will follow the U.S. Department of Housing and Urban Development's definition of 'affordable housing' — which is, housing that doesn't cost a household more than 30% of its gross income. The planned developments are to specifically target those making 80% or less than the area median income, to truly serve those most in need of financial relief. They’re set to offer 72 affordable units at Wild Rose Flats and 192 units at Salamanca Square, with construction expected to commence in 2026.
