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Peoria authorizes up to $300,000 to stabilize New Hope Apartments after repeated fires
Summary
After repeated fires and the property insurer’s cancellation left dozens of units uninhabitable, Peoria authorized the city manager to spend up to $300,000 in repurposed ARPA funds for 24/7 fire watch, temporary sheltering and relocation assistance for tenants at New Hope Apartments.
Peoria City Council unanimously authorized the city manager to use up to $300,000 to stabilize New Hope Apartments at 301 Northeast Jefferson after repeated deliberately set fires and sprinkler damage left roughly 34 units unfit for habitation.
Community Development Director Joe Doolin told the council that New Hope — a permanent supportive housing site jointly owned by Peoria Opportunities Foundation and Phoenix Community Development Services — has suffered multiple incidents, including an October sprinkler tampering event and a later intentionally set fire that damaged 20 units and building systems. After multiple claims, the property’s insurer dropped coverage and the building no longer has property insurance, staff said.
Doolin recommended using up to $300,000 from remaining ARPA-derived homelessness funds to cover 24/7 professional fire watch through Feb. 28 (estimated about $225,000) and to provide relocation and support assistance for displaced tenants (roughly $75,000). He told council the American Red Cross has provided temporary shelter and meals for residents in the short term and that Pathway Ministries and Dream Center have capacity to house some displaced residents. The Peoria Housing Authority is working with the city and the continuum of care on voucher options.
Council members pressed staff on whether other partners had been asked for money, whether Phoenix has insurance coverage for other properties, and on the long-term viability of the building. Doolin said the city has contacted state emergency-management and human-services officials and is exploring grant and brownfield options for remediation if needed. Police and Phoenix staff described arrests and case outcomes: one person arrested in October was released and charges dismissed by the state's attorney; another unrelated arson suspect in a different building remains in custody.
Councilmembers and the manager framed the authorization as a stopgap to avoid displacing many vulnerable residents during winter months and approved the request unanimously. Staff said they will continue coordination with Phoenix, PHA and other partners and pursue reimbursement options where eligible.
