Developer seeks tax credits and city support to convert Hotel Montezuma into seniors— affordable housing
Loading...
Summary
Allied Argenta told the Nogales council it plans a 50–55-unit affordable renovation of the historic Hotel Montezuma, seeking $19.3M in LIHTC and $100k-equivalent local support plus 13–14 project-based vouchers; the city discussed parking, floodplain and preservation issues.
Yvonne Galgo of Allied Argenta presented a plan on Dec. 3 to convert the historic Hotel Montezuma in downtown Nogales into about 50–55 affordable housing units, primarily one-bedroom apartments targeted to seniors and to adults with intellectual and developmental disabilities, with a preference for veterans.
Galgo said the team expects total project costs around $24,300,000 and plans to apply to the Arizona Department of Housing for 9% Low-Income Housing Tax Credits. "We are looking at requesting about 19,300,000.0 in low income housing tax credits," she told council, and said the developers would also pursue historic tax credits (approximately $600,000) and other funding sources.
To be competitive under the state—s Qualified Allocation Plan, Galgo asked the city to consider fee waivers or other local contributions that count toward the QAP—s local-government-support threshold (the developer cited a roughly $100,000 minimum local contribution category). She also requested 13–14 project-based vouchers from the housing authority to support affordability and make the application more competitive. Galgo said Santa Cruz County staff had indicated a tentative $50,000 commitment toward the project.
Galgo described constraints the team is studying: a portion of the property lies in a floodplain that prevents residential use on some lower-floor retail space, structural issues in a portion of the building damaged by fire, and uncertainties about how much of the original fabric can be preserved. She said architects and structural engineers are completing assessments and that application materials, including third-party studies, are being prepared for an April 1 application deadline; awards are typically announced in June or July.
Council members asked about parking and voucher timing. Galgo said preliminary concepts include on-site parking (potentially a podium arrangement) and that the application would include a letter of support or interest from the housing authority by April 1; final legal commitments would be completed at closing if the tax-credit application succeeds. Several councilmembers and the city manager expressed general support and noted prior experience with similar downtown housing projects.
Next steps described by the developer: complete engineering and floodplain studies, hold a community design charrette before the April 1 deadline, submit the LIHTC application and seek the city—s fee-waiver/voucher support to strengthen competitiveness.
