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El Pueblo outlines pipeline of more than 1,200 affordable units; Tucson House rehab flagged as largest project
Summary
Housing staff briefed council on El Pueblo Housing Development’s pipeline: two completed projects and ten upcoming projects totaling roughly 1,285 units (2,026 bedrooms), financed through a mix of federal grants, LIHTC, county gap funding and city framework dollars; Tucson House rehab is the largest, with a $193M funding mix and a 30‑month construction schedule.
Housing and Community Development Director Anne Chineka and development lead Johanna Hernandez presented El Pueblo Housing Development’s current pipeline and funding strategy.
Hernandez said the El Pueblo nonprofit arm currently has two completed projects (Milagro on Oracle and the Amazon Motel rehab) and ten additional projects across predevelopment and construction stages. The pipeline totals approximately 1,285 units and 2,026 bedrooms and includes family‑targeted projects such as Sugar Hill on Stone and large rehabilitation efforts like Tucson House.
Hernandez described the funding stack: one‑time federal grants (including a $50,000,000 Choice Neighborhoods implementation grant), $15,000,000 in mayoral framework dollars (derived from ARPA), LIHTC and historic tax credits, Pima County gap funding and other federal and state subsidy sources. She said those one‑time funds have leveraged an estimated $334,000,000 in broader community investment for the pipeline.
The Tucson House rehabilitation — the largest project in the pipeline — will convert a 408‑unit high‑rise into approximately 358 voucher‑supported units for older adults (55+), modernize building systems and is expected to close financing in the fall with construction starting by year‑end and a 30‑month schedule. Staff noted contingency challenges including failing infrastructure, relocation logistics for in‑place rehab and ongoing federal funding uncertainty.
Council members asked about long‑term funding once framework dollars are expended; staff said HOME formula funds are expected to continue but long‑term gap funding will be necessary and discussions with Pima County (which has committed $250M over 10 years) are ongoing.
What’s next: staff will proceed with scheduled closings and continue to pursue gap funding and LIHTC rounds, while bringing regular updates to council on project timelines and funding status.
