Tempe proposes affordable housing program for low-income residents

In a recent joint meeting of the Tempe City Council and Development Review, discussions centered on the pressing issue of affordable housing in Tempe. The meeting highlighted the city's median household income and the implications for housing affordability, particularly for low- and moderate-income residents.

The presentation revealed that Tempe's median household income stands at $77,643 annually. For residents earning up to 80% of the area median income (AMI), which is approximately $62,114, the expectation is that they should spend no more than 30% of their income on housing. This translates to a feasible rent for a one-bedroom apartment, making it crucial for developers to consider affordable housing options in their projects.

The meeting showcased a scenario involving a small infill development of about 20 units. It illustrated the financial dynamics between market-rate rents and the reduced rents necessary to accommodate lower-income tenants. By providing affordable housing options, developers would see a decrease in their annual income from these units, but the trade-off is significant: it enables individuals in essential job sectors, such as education and healthcare, to secure housing in Tempe.

Further discussions explored additional scenarios, including one for residents earning 65% of AMI, or $50,467 annually. This group would be able to afford a one- or two-bedroom unit at a rent of approximately $15,000 per year. The most challenging scenario addressed those in entry-level positions, such as customer service and labor jobs, who might only afford $11,647 annually for a two-bedroom apartment.

The proposed development bonus program aims to provide affordable housing for up to 30 years, addressing the critical need for accessible housing in Tempe. The council's commitment to these initiatives reflects a growing recognition of the importance of affordable housing in fostering a diverse and sustainable community.

As the city moves forward, the discussions from this meeting underscore the need for continued collaboration between city officials and developers to create housing solutions that meet the needs of all residents. The outcomes of these discussions will play a vital role in shaping Tempe's housing landscape in the coming years.