PHOENIX — The City of Phoenix plans to build affordable housing units after entering purchase and sale agreements with two school districts, the city announced Wednesday.
Approximately 10 acres will be purchased from Isaac and Alhambra school districts. Isaac School District will receive $3.1 million for 4.56 acres near 43rd Avenue and Thomas Road and Alhambra School District will receive $2.3 million for 5.54 acres near 37th and Grand avenues.
After the purchases, the land will be sold and developed into affordable multi-family housing. 72 affordable units will be built on the Isaac School District land and 192 affordable units will be built on the Alhambra School District land. Construction on both sites is expected to begin in 2026.
To meet U.S. Department of Housing and Urban Development's definition of affordable housing, the housing developed will be priced at 80% or less of the area median income.
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According to a release from the city, a Land Use Restrictive Agreement will be placed on both properties to ensure that each will be used for affordable housing for a minimum of 40 years.
“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,” said Titus Mathew, Housing Director for the City. “These public-private partnerships secure land to help bridge that gap, and to create more housing options for residents at all income levels and family sizes.”
The City of Phoenix set a goal to create or preserve 50,000 affordable housing units by 2030 to address the housing shortage in the city. In November, Mayor Kate Gallego said the city is at 96% of its goal.
In January, the city put some of its own property on sale — eight lots in Sunnyslope to be sold in two packages. ABC15 reported that the properties are appraised at $625,000 and $470,000 and is part of a broader strategy to incentivize private contractors to help tackle the need for affordable housing.
The purchase of Isaac School District's land comes after the district's recent financial crisis, resulting in a financial agreement with the Tolleson Union High School District.
