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Tucson presents third annual housing affordability update, highlights 1,200 units in development and programs to speed projects

3176317 · January 8, 2025
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Summary

City officials told mayor and council the Housing Affordability Strategy is advancing across the housing continuum, with about 1,200 units in development, new staff capacity, a fast‑track permitting pilot made permanent, and an approved impact‑fee subsidy for 18 Habitat for Humanity homes.

Mayor and council received the Housing Affordability Strategy annual update from Anne Chineka, director of Housing and Community Development, and Corin Manning, interim director of Planning and Development Services. Chineka said the city is focusing on both preservation and creation across the housing continuum, from emergency shelters to market‑rate housing, and described progress since the plan was adopted in 2021.

Chineka said the city administers public housing and the Housing Choice Voucher Program, “We currently offer over 7,000 households housing assistance, over 17,000 residents,” and flagged a federal funding shortfall for operation of city‑owned housing. She identified three near‑term priorities for the housing authority’s financial stability plan: the Tucson House rehabilitation, a strategy for the city’s scattered single‑family public housing units, and progress on Craycroft Tower apartments.

The presentation described new staff capacity added in 2024, including a deputy director for development, a community development manager, a management coordinator (Antonio Carranza) focused on financial transactions, and a lead planner (Evelyn Somez). Planning and Development Services added a project manager to shepherd affordable projects through permitting.

Manning described a pilot affordable housing fast‑track permitting program that gave projects an assigned project manager and compressed review timelines; she said Rincon Manor, an 84‑unit senior affordable development, received site plan approval in roughly 2.5 months under the pilot. Manning said the city is launching an affordable housing fast‑track permitting option available to projects using low‑income housing tax credits, with 15‑day review time frames for eligible reviews.

Manning also discussed a proposed “community corridors” zoning tool intended to enable transit‑oriented mixed‑use redevelopment by allowing additional height and density, reduced parking and setback requirements, and design elements such as wide sidewalks and shade. She said the tool is under Planning Commission review and expected before mayor and council in spring.

Chineka reviewed other recent code changes including ADU updates adopted last year allowing two ADUs per site (and a third on sites of an acre or more in specific circumstances), a casita model plan library launched in 2024 with seven preapproved designs, and adaptive reuse code amendments enacted in December that add a tool for converting commercial buildings and include an affordable‑housing requirement for projects using that new pathway.

Chineka reported development outcomes and pipeline: “2024 was a good year around affordable housing development for the city,” she said, and described roughly 1,200 units currently in development. She highlighted completed and in‑progress projects including Milagro on Oracle (near completion), Amazon Flats (conversion of a motel to 30 studio permanent supportive housing units with Old Pueblo Community Services providing on‑site supportive services), and Sugar Hill on Stone (a 66‑unit family project). She described milestone progress on five shelter or transitional shelter projects brought online in recent years and said a sixth is underway.

The presentation included data from a housing needs assessment firm, Echo Northwest, that the consultants said Tucson needs about 13,000 units across the housing continuum now and projected 35,000 units when regional growth over the next decade is included. “That is a prediction that could change,” Chineka said, “but I think what's clear is that we can't slow down.”

During the consent portion of the meeting council voted separately to approve an impact‑fee subsidy request for Habitat for Humanity for the Rodeo Subdivision: the project will convert a 1.93‑acre Sunnyside site into 18 three‑ and four‑bedroom owner‑occupied homes. Chineka read a statement from Habitat CEO Charlie Buchanan noting the site’s modular shared‑wall design and thanking mayor and council; the item passed. Mayor Romero noted the subsidy was about $51,000 in waived impact fees and said the waivers were part of the city’s “safe and vibrant city” initiative to create predictable funding for impact‑fee waivers.

Councilmembers asked for follow up on several topics in the presentation: data on the 2024 unit production and projected private‑market impacts of the zoning changes (Manning said the city was compiling 2024 production data and would provide it), whether adaptive reuse projects can use LIHTC rehabilitation credits (staff said rehabilitation credits exist but adaptive reuse must qualify as rehab), and what the city is doing on eviction prevention (Chineka pointed to the People, Communities and Homes investment plan, county partnerships and specific funding in a manufactured/mobile home grant for eviction prevention).

Chineka and Manning emphasized continued work in 2025 to implement the middle‑housing state legislation, finalizing community corridors zoning, expanding the fast‑track program and advancing the Tucson House rehabilitation. They told council the city is continuing to pursue additional funding streams including a referral to a ballot proposition (Prop 4‑14) that would allocate funds for housing if passed and described a pending HUD grant application that could increase development capacity.

The update closed with staff noting both progress and remaining gaps: city staff described production and pipeline progress while noting that funding uncertainty at the state and federal level could affect future programs.

Ending: Councilmembers thanked staff for the update; the mayor invited the public to a Milagro housewarming event later in the week and noted the city would return with further details on Tucson House and other projects at future meetings.