Show Low hears feasibility study for workforce housing; council raises procurement and risk questions

Jim Hammond of the White Mountain Advisory Group presented the results of a workforce housing feasibility study to the Show Low City Council, outlining market demand, financing scenarios and next steps. Hammond said the study used a market analysis by Concord Group, engineering by Ironside Engineering, a financial analysis by the Pinion Group and underwriting by Sustainability Partners.

Hammond told the council the consultants found high local demand and constrained supply. He said the market study estimates a need of roughly 940 workforce units for households “between the 60 and 120% of area median income,” and that expanding the model to 150% AMI would add “another 20 units.” He also cited an average annual rental growth of about 9% over the last five years.

The study compared three financing approaches: private equity, municipal bonds and a model offered by Sustainability Partners. Hammond summarized the…