Tempe City Council proposes development bonus program to boost affordable housing

In the heart of Tempe, city officials gathered under the bright lights of the council chamber to discuss pivotal developments shaping the community's future. The recent joint meeting of the Tempe City Council and the Development Review Committee on May 19, 2025, focused heavily on strategies to enhance affordable housing and streamline development processes.

One of the key topics was the Apache Redevelopment area, which has been in effect for nearly two decades. This initiative aims to revitalize land along Apache Boulevard by offering developers significant incentives, including up to 50% in development fee rebates for projects that incorporate 10 to 15% workforce housing units. This approach not only encourages growth but also addresses the pressing need for affordable housing in the area.

The council also highlighted the success of the accessory dwelling unit ordinance, approved the previous year, which has seen a positive response from residents eager to take advantage of new housing opportunities. This ordinance allows homeowners to create additional living spaces, thereby increasing the availability of affordable housing options.

Another significant discussion point was the proposed development bonus program, designed to incentivize developers to include affordable housing in their projects. This voluntary program would allow developers to gain additional residential density, building height, and reduced parking requirements in exchange for dedicating a portion of their projects to affordable housing. The program aims to simplify the process for developers while ensuring that the community benefits from increased housing options.

The meeting also featured a detailed analysis of housing costs across the city, revealing that a substantial percentage of renter households are spending over 30% of their income on housing. This statistic underscores the urgency of the council's efforts to address housing affordability.

As the meeting concluded, city officials expressed optimism about the proposed initiatives, emphasizing their commitment to creating a more inclusive and affordable housing landscape in Tempe. With these strategies in place, the city aims to not only meet the immediate needs of its residents but also to foster sustainable growth for years to come.