GLENDALE, Ariz. — The demand for affordable housing is ramping up in the Valley. State experts say Arizona is short hundreds of thousands of units and the struggle is intensifying.
One year ago, Arizona housing director Tom Simplot, said Arizona was 250,000 units short of the needs across the state.
“We now know with the influx of new residents and the escalating number grown to 270,000 units that we need across Arizona,” Simplot said. Most of the demand is in Maricopa County.
The new state housing tax credit program is being used to support developers in financing part of their project costs. It was signed into law by Gov. Doug Ducey in 2021. The legislation opens up $4 million every year for four years, which could be used to leverage up to $160 million to build affordable homes.
Gorman and Company is the first developer to receive state housing tax credits from the Arizona department of housing. They’re using it to turn an empty 13-acre lot near 67th Ave. and Glendale, into hundreds of new affordable housing units, said company president & CEO, Brian Swanton.
“It’s going to be a very high quality affordable housing development here in Glendale," Swanton said. The development will be called Centerline on Glendale, and will house more than 350 affordable units. Total development will cost more than $90 million. The company received $2 million state housing tax credit dollars for part of the project.
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“It incentives private corporations who have tax liability in the state to reinvest their tax liability into affordable housing production," Swanton said. "It’s a great way to get private activity involved in solving a very complex issue which is the lack of affordable housing.”
This new workforce housing will be open to households earning at or below 60-percent of the county-wide median income. Swanton said it will target families earning less than $50,000 per year.
Swanton estimates it'll take about two years for the project to be finished because of labor and supply chain shortages. It also includes plans for a special commercial kitchen on site for up to 100 entrepreneurs and aspiring chefs to prepare and serve food out in the community.
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