Mesa staff outline plan for 62‑unit senior affordable housing on city parcel near senior center

Mesa city staff on March 23 described a proposed public‑private partnership to develop the Helix Apartments, a 62‑unit senior affordable housing project on a 0.92‑acre city‑owned parcel near the senior center.

Candace, a city staff member presenting the proposal, said the city purchased the site with federal Neighborhood Stabilization Program funds and plans to enter an option to lease and an option to purchase with Commonwealth Development Company if the developer secures state Low‑Income Housing Tax Credits (LITC). "This is a senior affordable housing public‑private partnership," Candace said.

Why it matters: staff framed the ground‑lease as a way to secure long‑term affordability without the city funding construction. Under the terms staff described, the city would hold a 50‑year affordability requirement on the 62 units through the ground lease; an option to extend the lease 25 years would increase that affordability period to 75 years. "They would stay affordable for the full 50 years," Candace said, adding that a 25‑year extension would extend the restriction further.

Details and conditions: staff said the parcel was acquired using federal neighborhood stabilization funds and that federal environmental requirements delayed closing until 2025. The developer needs controlling rights to the property to compete effectively for state LITC points; staff said the project would score about 180 of 185 possible points in the state scoring process, leaving it well placed for funding in the 2026 application cycle (the state deadline staff cited is April 1, 2026). Staff estimated construction at roughly $18 million and said the developer — not the city — would finance and maintain the building under the lease. "We have unfortunately a very, very high demand for this type of product and a very low supply," Candace said when asked whether the units would be filled.

Affordability and eligibility: council asked how the city would define ‘‘senior’’ and how income eligibility would be determined. Staff said units would be age‑restricted to 55 and older and that HUD rules (as applied through HOME and LITC programs) would determine income thresholds and rent calculations. Staff said tenants generally pay about 30 percent of income in rent under those federal rules.

Council response and next steps: several council members expressed concern about concentrating senior housing in the downtown area but otherwise signaled support; during the study session council indicated approval in principle but no formal roll‑call vote on the lease terms was recorded at this meeting. Staff said the ground‑lease option would apply only if the developer is awarded LITC in 2026 or 2027; if the developer does not receive credits, staff said the option would be dismissed and the city would seek another developer or alternative use.

What remains unclear: staff cited the parcel address as "1731 and 37 West University Drive" in presentation materials; council asked for clarifying documents in the formal meeting packet. The council will consider the item at an upcoming council meeting where formal action would be recorded.

Ending: staff reiterated that the lease structure was intended to lock in long‑term affordability without using local general‑fund dollars for construction, and that tenant support services would be required through nonprofit partners over the affordability term.