As housing costs continue to climb, the City of Phoenix has made significant strides in addressing the demand for affordable housing across its communities.
Recently, the Phoenix Housing Department presented a comprehensive update on ongoing projects and future plans, underscoring the city’s commitment to enhancing housing availability for residents at all income levels.
From expanding housing stock to easing zoning restrictions and incentivizing public-private partnerships, Phoenix is focused on creating a city where everyone can find a place to call home.
The Housing Phoenix Plan
Phoenix introduced the Housing Phoenix Plan in June 2020, aiming to create or preserve 50,000 housing units by 2030. Significantly, by September 2024, Phoenix had achieved 96% of this target, delivering over 48,000 housing units, with 22% designated affordable.
Milestones of the Housing Phoenix Plan:
- Affordable Units Created: Over 10,000 units created or preserved, addressing the needs of low-income families.
- Workforce and Market-Rate Units: A combined total of 37,746 units created to meet the needs of various income levels.
The Housing Phoenix Plan has focused on key initiatives to make a long-term impact on housing availability, including zoning changes, public land development, and private-sector partnerships.
Enhancing Housing Through Strategic Zoning
Phoenix’s zoning updates have been pivotal in expanding housing options throughout the city. In 2023, the city approved a significant text amendment allowing Accessory Dwelling Units (ADUs) across Phoenix, granting homeowners more flexibility to add rental units to their properties.
Additionally, the city adjusted its parking standards for multifamily developments, reducing costs for developers and increasing the feasibility of constructing affordable units.
Since these zoning changes took effect:
- 233 ADU Permits Issued: Homeowners are utilizing ADUs to create additional housing, a new trend in affordable rentals.
- Walkable Urban Code Expansion: Expanded in 2022, this initiative promotes high-density housing near public transit, reducing reliance on cars and increasing access to affordable options.
These zoning amendments play a critical role in creating a more adaptable housing infrastructure in a growing metropolitan area.
Leveraging Public-Private Partnerships for Housing
The city’s dedication to public-private partnerships has brought much-needed investment into the affordable housing sector.
By collaborating with private developers, Phoenix has tapped into additional funding and development expertise to build quality affordable units at a faster rate.
Notable Partnership Outcomes:
- 500 New Affordable Units: Through a $6 million allocation from the American Rescue Plan Act (ARPA), Phoenix has provided gap funding to private developers, resulting in the creation of over 500 new affordable units across the city.
- Affordable Homeownership Opportunities: In 2023, Phoenix awarded $5 million to a local development corporation to launch a Community Land Trust, an initiative expected to provide affordable homeownership to at least 25 families while reinvesting future sale proceeds.
These initiatives underscore the impact of collaboration in creating housing solutions that benefit all Phoenix residents.
Preserving Affordable Housing for Long-Term Stability
Phoenix’s preservation efforts extend beyond creating new units; the city also focuses on maintaining existing affordable housing.
By supporting rehabilitation and protecting units through long-term affordability agreements, Phoenix ensures these residences remain accessible to low-income residents for years to come.
The Gap Financing Program, which has operated since 1993, is one of Phoenix’s most effective tools for preserving affordable housing. This program offers financial support to developers, with a requirement to maintain affordability for 40 years. To date:
- 8,700 Units Preserved: More than 140 projects have been funded through this initiative, with a total investment of $119 million.
Innovative Projects on City-Owned Land
With a goal to maximize available resources, Phoenix is developing affordable housing on city-owned land. Multiple high-density projects are either underway or planned, each designed to provide affordable housing for seniors, families, and low-income individuals.
Upcoming Projects:
- Helen Drake Village: An 80-unit affordable housing project for seniors.
- Central and Columbus Project: A mixed-use, 250-unit development combining residential space with local business opportunities.
- Marcos de Niza Redevelopment: The transformation of public housing into a high-density, mixed-income neighborhood.
These projects illustrate Phoenix’s commitment to using its resources effectively to provide accessible housing options in areas of high demand.
Incentives for Landlords and Homeownership Programs
Phoenix is also tackling the housing shortage by incentivizing landlords to accept Housing Choice Vouchers (HCV). The Landlord Incentive Program has effectively expanded rental options for voucher holders, offering financial rewards to landlords who participate in the HCV program.
Landlord Incentive Program Results:
- 4,700 Incentive Payments: With $7.8 million in funding, this program added over 900 landlords to the HCV network, significantly increasing housing opportunities for voucher holders.
Additionally, the Open Doors Down Payment Assistance Program offers first-time homebuyers support to cover down payments. Since its inception in 2013, the program has enabled over 90 families to purchase homes, and current funding is set to help an additional 50 households secure their first home.
Bridging the Digital Divide in Affordable Housing Communities
Acknowledging the importance of connectivity in today’s world, Phoenix is addressing the digital divide in affordable housing areas.
Through a $3 million ARPA-funded program, the city has installed Wi-Fi infrastructure and offers digital skills training in over 35 housing communities, providing essential internet access to underserved populations.
Digital Connectivity Initiative Highlights:
- 3 Years of Free Internet Access: Residents in these communities will have complimentary Wi-Fi, helping bridge digital inequities.
- Expansion Possibilities: Phoenix is actively pursuing grants to make this initiative sustainable in the long term.
Addressing Future Housing Needs
The city’s recent Housing Needs Assessment provided critical insights into the housing market, highlighting an urgent need for affordable units.
additionally, with rising rents and a significant gap in affordable housing for low-income households, Phoenix is prioritizing policies that address these challenges.
The assessment revealed:
- 59,000 Unit Shortfall: A need for affordable units for households earning less than 50% of the area median income.
- Steady Population Growth: Rapid population increases during the pandemic added pressure on housing supplies.
From zoning reforms to targeted programs, the city’s multipronged approach aims to ensure that future housing needs are met while fostering a vibrant, inclusive community.
For additional facts and information you can read the full report.
Final Thoughts
Building a Brighter Future for All Phoenix Residents
Phoenix pioneers affordable housing solutions, providing a viable blueprint for cities facing comparable challenges. Consequently, through strategic planning, collaborative partnerships and innovative solutions, Phoenix lays groundwork for an inclusive community where diverse residents can flourish.
By addressing both immediate needs and long-term sustainability, Phoenix’s housing initiatives are bringing real solutions to the city’s housing crisis and shaping a future where housing is a right, not a privilege.
Sources: THX News & City of Phoenix.
