New additions to Phoenix’s affordable housing loan program received unanimous support at the Neighborhoods, Housing and Development subcommittee meeting Tuesday in Phoenix City Hall.
“In this (housing) market are low-income residents who are having a very, very difficult time finding safe, sanitary and decent housing that they can afford,” said Cindy Stotler, the city’s acting housing director.
The program will begin prioritizing the funding of affordable housing projects submitted by community housing development organizations in its 2015-16 competitive funding round, if approved by City Council.
Community priorities that were approved in 2013 will continue to be determinants for selecting projects to be funded. These priorities include assisting low- and moderate-income families with down payments and closing costs, as well as rehabilitating current nonprofit-owned and previously funded affordable properties.
“These priorities are designed to be narrowly focused, targeting supportive housing projects that cater to the most vulnerable and frail populations, like homeless and special needs,” Stotler said.
The subcommittee will also recommend approval of updates to the loan program’s annual call for interest process. Stotler said an objective, department-appointed selection committee, including various city departments and community members, would recommend awards based on the community priorities, as well as “developer experience, project merits and financial feasibility.” This would directly follow an application period from November to January.
With $6.5 million in total funding from HOME Investment Partnerships Program funds ($4 million) and community development block grants ($2.5 million), the affordable housing loan program will provide loans for approximately four to five projects. Of this total, $1.2 million is reserved for partnership with nonprofit organizations dedicated to community development, such as UMOM New Day Center and Native American Connections, Stotler said.
District 6 Councilman Sal DiCiccio suggested that affordable housing projects be passed on to as many of these nonprofits as possible.
“They’re mission-driven and they’re the ones that would be better equipped to handle this,” DiCiccio said. “We can’t solve everything here, but we have individuals in our community that literally are driven to fix those types of things.”
Though supportive of the program and its additions, DiCiccio also expressed concern that new developments would raise rent values, driving out people in need of transportation services.
“I think that’s going to be a debate that’s going to occur,” DiCiccio said. “As you have these main lines where people want to live, that’s also the place that you’re going to see the people needing to get on the transit. I don’t know how you solve that.”
In addition, District 8 Councilwoman Kate Gallego, chair of the subcommittee, spoke of a need to increase affordable housing outside of the main transit areas in the future.
“Certainly, (affordable housing) is important along the light rail, but people need good housing throughout our city,” Gallego said. “We also want to make sure that we can support our school system with diverse school districts as well, so we want to benefit as many people as possible throughout our Valley and our community.”
With 67,000 families in need of affordable housing, as well as a significant special-needs population, the continuation of and additions to the affordable housing loan program are necessary for Phoenix’s current needs, Stotler said.
“By continuing to support this program, you will be making a real difference in the lives of many of our residents, who deserve safe, sanitary and decent affordable housing,” Stotler said.
Contact the reporter at Emily.Liu@asu.edu.
