| Top Five Accomplishments of the City of Phoenix Housing Department in 2024 | https://www.phoenix.gov/newsroom/housing/3310 | Housing | | 12/23/2024 11:30:00 PM | https://www.phoenix.gov/newssite/Lists/NewsArticle/Attachments/3310/Newsroom_Housing_007.png | | Top Five Accomplishments of the City of Phoenix Housing Department in 2024 | <div class="ExternalClass6F15DA79D7034785A2069D91E7B080EC"><html>
<span lang="EN-US" data-contrast="auto">In 2024, the City of Phoenix Housing Department achieved significant progress in addressing the City’s housing needs, guided by a mission to ensure that all residents have access to safe, affordable, quality housing options. With a focus on innovative programs and ensuring a diverse range of housing options, the department worked to address housing challenges and help build stronger communities. Here are the top five accomplishments for 2024:</span><span data-ccp-props="{}"> </span><br><br><div><div>
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<strong>1. Housing Phoenix Plan Goal Nearly Reached
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<span lang="EN-US" data-contrast="auto">More than 48,000 housing units have been created or preserved throughout the </span>
<a rel="noreferrer noopener" target="_blank" href="/housing/plan">
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<span data-ccp-charstyle="Hyperlink">Housing Phoenix Plan</span>
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<span lang="EN-US" data-contrast="auto">, which is more than 96% of the Plan’s goal of creating or preserving 50,000 units by 2030. Through innovative strategies and partnerships with private and non-profit developers, the Housing Phoenix Plan ensures increased housing options for residents at all income levels and family sizes. This milestone underscores the City’s dedication to addressing housing shortages and ensuring long-term housing stability for its residents. As of September 2024, 48,391 units have been created or preserved in Phoenix, including 22% affordable units.</span><span data-ccp-props="{}"> </span>
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<span lang="EN-US" data-contrast="auto">Affordable | 4,625 created & 6,020 preserved</span>
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<span lang="EN-US" data-contrast="auto">Workforce | 11,228 created</span>
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<span lang="EN-US" data-contrast="auto">Market Rate | 26,518 created </span>
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<span lang="EN-US" data-contrast="auto">View the current </span>
<a rel="noreferrer noopener" target="_blank" href="/housingsite/Documents/HPP_Qrtly_Report.pdf">
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<span data-ccp-charstyle="Hyperlink">Housing Phoenix Plan Quarterly Report</span>
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<strong>2. Securing and Implementing Federal Choice Neighborhoods Grants
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<span lang="EN-US" data-contrast="auto">The Housing Department achieved significant progress in revitalization efforts in the Edison Eastlake and Marcos de Niza neighborhoods through the U.S. Department of Housing and Urban Development’s (HUD) Choice Neighborhoods program.</span>
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<span lang="EN-US" data-contrast="auto">Edison-Eastlake transformation: The City received a supplemental implementation grant that, combined with $21 million in voter-approved general obligation bonds, will help transform 577 outdated public housing units into more than 1,000 mixed-income housing units. This comprehensive initiative also includes neighborhood improvements, supportive services, and community resource enhancements.</span>
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<span lang="EN-US" data-contrast="auto">Marcos de Niza Planning Grant: A planning grant was secured to develop a comprehensive neighborhood transformation plan for the Marcos de Niza-Grant Park area, laying the groundwork for future revitalization efforts that will benefit residents and the broader community.</span>
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<strong>3. Family Self-Sufficiency Program Success
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<span lang="EN-US" data-contrast="auto">In 2024, the Family Self-Sufficiency (FSS) Program celebrated the </span>
<span lang="EN-US" data-contrast="auto">graduation of 44 families. This program </span>
<span lang="EN-US" data-contrast="auto">provides individuals and families the tools and resources they need to achieve financial independence, including job training and preparation, budgeting and money management, and homeownership preparation. </span>
<span lang="EN-US" data-contrast="none">Collectively, these families started with a combined income of approximately $560,000 and graduated with a combined income of more than $1.96 million. They collectively received approximately $585,000 in escrow checks. <span id="ms-rterangepaste-end"></span>Five of these participants moved to homeownership and one is currently pending purchasing a home. </span><span lang="EN-US" data-contrast="auto">These </span>
<span lang="EN-US" data-contrast="auto">44 families exemplify</span>
<span lang="EN-US" data-contrast="auto"> how the program empowers residents, enabling them to transition from subsidized housing to self-reliance and homeownership.</span>
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<strong>4. Leveraging COVID-19 Pandemic Relief Funding
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<span lang="EN-US" data-contrast="auto">The City of Phoenix has effectively utilized American Rescue Plan Act (ARPA) and HOME-ARP pandemic funding to address critical housing needs and support vulnerable populations. Key accomplishments include:</span>
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<span lang="EN-US" data-contrast="auto">Landlord Incentive Program: disbursed 1,153 incentives to 384 property owners in 2024, with 284 participating in the Housing Choice Voucher program for the first time. This initiative has strengthened landlord participation and expanded housing options for voucher holders.</span>
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<span lang="EN-US" data-contrast="auto">Affordable housing development: provided gap funding for new affordable housing projects and initiated a community land trust to ensure long-term affordability.</span>
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<span lang="EN-US" data-contrast="auto">Shelter and supportive services: $8 million allocated by the Housing Department for shelters serving families experiencing homelessness and $2.5 million for supportive services, enhancing the City’s capacity to provide immediate solutions for our most vulnerable residents.</span>
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<span lang="EN-US" data-contrast="auto">
<strong>5. Parking Reductions to Facilitate Housing Development
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</strong><span data-ccp-props="{}"> </span></div><span lang="EN-US" data-contrast="auto"><b><br></b>The City adopted a critical amendment to the Phoenix Zoning Ordinance, led through the work of the Planning and Development Department and consistent with the Housing Phoenix Plan, reducing parking requirements for multifamily developments. This forward-thinking policy aims to lower development costs and encourage the creation of more housing options, supporting the City’s goal of increasing housing availability and affordability.</span>
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<span lang="EN-US" data-contrast="auto">
<span data-ccp-parastyle="Normal (Web)">These accomplishments are a testament to the </span>
<span data-ccp-parastyle="Normal (Web)">C</span>
<span data-ccp-parastyle="Normal (Web)">ity’s unwavering commitment to building a Phoenix where everyone </span>
<span data-ccp-parastyle="Normal (Web)">has the opportunity to</span>
<span data-ccp-parastyle="Normal (Web)"> live in a home they can afford. By continuing to prioritize collaboration and sustainability, the department will play a key role in shaping a more </span>
<span data-ccp-parastyle="Normal (Web)">equitable</span>
<span data-ccp-parastyle="Normal (Web)"> and inclusive future for all </span>
<span data-ccp-parastyle="Normal (Web)">Phoenix </span>
<span data-ccp-parastyle="Normal (Web)">residents.</span></span><br>
</html></div> | https://www.phoenix.gov/housing | News | housing |
| City of Phoenix Makes Significant Strides in Affordable Housing and Housing Availability | https://www.phoenix.gov/newsroom/housing/3275 | Housing | | 11/12/2024 11:30:00 PM | https://www.phoenix.gov/newssite/Lists/NewsArticle/Attachments/3275/Newsroom_Housing_201.png | | City of Phoenix Makes Significant Strides in Affordable Housing and Housing Availability | <div class="ExternalClassC3F9E4DC099B43A1A6015242B064EB9D"><html>
<p><span data-contrast="auto" lang="EN-US">Today, the City of Phoenix Housing Department presented an extensive overview of Phoenix’s housing efforts and initiatives aimed at serving our residents and addressing housing supply and affordable housing needs in our city. </span><span data-ccp-props="{}"> <br></span></p>
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<span data-contrast="auto" lang="EN-US">For many years, the City of Phoenix has prioritized increasing the supply of housing for all income levels. These efforts span multiple City departments and have produced extremely successful policies, programs and initiatives. Phoenix is and will continue to be a leader in ensuring increased housing options for everyone who chooses to call the city home. Below is a summary of the primary accomplishments shared in the presentation to the Phoenix City Council:</span>
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<strong>Housing Department Overview</strong>
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<span data-contrast="auto" lang="EN-US">The Housing Department focuses on programs and services that support permanent, affordable housing in the City of Phoenix. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">As the Public Housing Authority (PHA) for the city, the Housing Department operates more than 1,000 public housing units.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">The Housing Department is responsible for administering more than 7,500 Housing Choice Vouchers allocated by the federal government.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">The Housing Department also provides more than 3,900 units in apartment communities throughout the city, with more than 300 currently under construction.</span>
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<div style="text-decoration:underline;">
<span data-contrast="auto" lang="EN-US">
<strong style="">Housing Phoenix Plan</strong>
</span>
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<span data-contrast="auto" lang="EN-US">In June 2020, Mayor and City Council approved the </span>
<a href="/housing/plan" target="_blank" rel="noreferrer noopener">
<span data-contrast="none" lang="EN-US">
<span data-ccp-charstyle="Hyperlink">Housing Phoenix Plan</span>
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</a>
<span data-contrast="auto" lang="EN-US"> (HPP), to create a stronger and more vibrant Phoenix through increased housing options for residents at all income levels and family sizes. To achieve this, the Plan set a goal of creating or preserving 50,000 housing units by 2030 through the implementation of the nine policy initiatives.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">As of September 2024, more than 48,000 housing units have been created or preserved throughout the city, which is more than 96% of the total unit goal.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Approximately 22% of these units are considered affordable, with the remainder being workforce or market rate units. The breakdown is:</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">48,391 created or preserved Units</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Affordable | 4,625 created & 6,020 preserved</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Workforce | 11,228 created</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Market Rate | 26,518 created </span>
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<span data-contrast="auto" lang="EN-US">Significant progress has also been made in several of the Plan’s nine policy initiatives including:</span>
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<strong>HPP Initiative 2- Zoning</strong>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">A text amendment was approved to allow accessory dwelling units (ADUs), citywide in September 2023.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">As of September 2024, the Planning and Development Department has issued 233 building permits for ADUs in Phoenix.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="none" lang="EN-US">The Planning and Development Department led the Walkable Urban Code expansion text amendment, which was approved in February 2022.</span>
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<li>A text amendment to address parking standards and reductions for multifamily development was also approved in January 2024.<span style="background-color:window;color:windowtext;font-size:10pt;" data-ccp-props="{"335559685":1080,"335559739":0,"469777462":[720],"469777927":[0],"469777928":[0]}"> </span></li>
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<p>
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<strong>HPP Initiative 3- Redevelop City-Owned Land with Affordable Housing</strong>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">140 parcels were identified as suitable for residential development and approved by Mayor and City Council. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">26% of those approved parcels have been released via Request for Proposal (RFP).</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Due diligence for additional RFP releases is underway and additional parcels are being considered for future housing development.</span>
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<p>
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<strong>HPP Initiative 4- Enhance Public-Private Partnerships and Increase Funding</strong>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Four private development projects were awarded gap funding from a $6 million allocation of American Rescue Plan Act (ARPA) funding In June 2023.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">This funding is assisting in the creation of over 500 new affordable housing units throughout the city.</span>
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<strong>HPP Initiative 7- Preservation</strong>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">$5 million of ARPA funding was awarded to a local community development corporation in 2023 to create permanently affordable homeownership opportunities through a Community Land Trust (CLT). </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Through this funding, at least 25 new homeownership opportunities will be provided, with future sale proceeds being reinvested back into the city.</span>
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<div style="text-decoration:underline;">
<span data-contrast="auto" lang="EN-US">
<strong>Future Affordable Housing on City-Owned Land</strong>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Helen Drake Village: 80-unit affordable senior housing</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Central and Columbus: planned 250-unit mixed-use affordable housing</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">9th Street and Jefferson: </span>
<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="none" lang="EN-US">planned high-density, mixed-income and mixed-use development</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Ambassador West: </span>
<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="none" lang="EN-US">planned high-density, mixed-income and mixed-use development</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Marcos de Niza: Redevelopment of public housing to higher density mixed-income housing</span>
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<strong style="">Landlord Incentive Program</strong>
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<span data-contrast="auto" lang="EN-US">The Housing Department launched the Landlord Incentive Program in 2020 in order to incentivize private market landlords to accept Housing Choice Vouchers (HCV). Throughout the life of the program:</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">$7.8 million in CARES Act and ARPA funding was utilized.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">4,700+ incentive payments were made to landlords.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">900+ new landlords were added to the HCV program.</span>
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<span data-contrast="auto" lang="EN-US">While all funding for the program has been expended, the Housing Department is still seeing interest in new landlords joining the HCV program. In October 2024, more than 50 current and prospective landlords attended a landlord open house to ask questions and gather additional information.</span>
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<a style="text-decoration:underline;" href="/housing/building-affordable-housing" target="_blank" rel="noreferrer noopener">
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<strong>Gap Financing for Affordable Housing Development</strong>
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<span style="color:windowtext;font-size:10pt;background-color:window;" data-contrast="auto" lang="EN-US">Through our gap financing program, the Housing Department serves as a lender to private affordable housing developers by providing development gap funding. When funding is provided to a project, the city records a deed restriction, called a land use restrictive agreement or LURA, on the units funded. This LURA ensures long-term affordability, which is currently set at a 40-year term.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Since 1993:</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Gap financing has supported 8,700 + units in 140 projects.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">$119 million in HUD funding has been provided to affordable housing developers.</span>
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<strong style="">Down Payment Assistance</strong>
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<span data-contrast="auto" lang="EN-US">The </span>
<a href="/housing/buying-affordable-housing" target="_blank" rel="noreferrer noopener">
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<span data-ccp-charstyle="Hyperlink">Open Doors Down Payment Assistance Program</span>
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<span data-contrast="auto" lang="EN-US"> is designed to assist eligible first-time homebuyers. Federal HOME funds are offered as a deferred payment, 0% interest loan that is forgiven after a period of 5 to 15 years, depending on the amount of assistance provided. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Since 2013, more than 90 families have utilized $1.4 million in funding to help buy a home through this program.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">$1.3 million in the process of being distributed and is expected to assist an additional 50 households.</span>
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<strong style="">Affordable Housing WiFi</strong>
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<span data-contrast="auto" lang="EN-US">The Housing Department is also committed to ensuring connectivity advancements to help address the digital divide.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">$3 million in ARPA funding is providing wi-fi and internet connectivity, digital skills training and broadband infrastructure at more than 35 of our affordable housing communities across the city. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">This ARPA funding will provide connectivity for 3 years.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">To address longer-term funding for this initiative, we recently collaborated with several other departments on a federal digital equity grant submission.</span>
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<strong style="">Housing Needs Assessment</strong>
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<span data-contrast="auto" lang="EN-US">The Housing Department also presented an overview of a recently completed housing needs assessment. Knowing the COVID-19 pandemic increased housing pressures in Phoenix, the Housing Department worked to obtain a current Housing Needs Assessment as the needs assessment in the Housing Phoenix Plan was based on data available in 2019. The current assessment provides new data and a deeper analysis than what was included in the Housing Phoenix Plan. The results of this current analysis will serve to inform future policy recommendations. Some of the key takeaways from the review of the assessment include:</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Approximately 57% of all subsidized housing units in Maricopa County are located in Phoenix.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">The amount of land in Phoenix that permits multifamily development far surpasses other cities and allows us to accommodate future housing development.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">20% of Phoenix zoned property permits multifamily development of 4 or more units per lot. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">64,000 + housing units have been entitled through rezoning actions from March 2019-September 2024, the majority being multifamily units. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">52% of all rental households are cost-burdened, meaning they pay more than 30% of their gross income towards housing costs, which includes rent and utility costs. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Phoenix’s extremely low- and very low-income renter households have the most limited housing options due to the low level of units with associated affordable rents.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">There is a gap of 59,000 affordable and available units for households at or below 50% of the area median income.</span>
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<span data-contrast="auto" lang="EN-US">Other factors that have had a significant impact on our housing supply in Phoenix: </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="none" lang="EN-US">The shortage of housing supply, relative to the demand, is a reason for increased housing prices.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="none" lang="EN-US">During the pandemic, Phoenix’s population steadily increased and put additional demand on the already-constrained housing stock, which led to large housing price increases.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="none" lang="EN-US">From 2019-2022, median rents increased by 47% and median sales prices increased by 56%. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="none" lang="EN-US">As of June 2024, the average median sales price in Phoenix was $440,000. The median home sales price in 2019 was $256,000.</span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="none" lang="EN-US">Current market conditions make it more difficult to purchase a home. </span>
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<span style="background-color:window;color:windowtext;font-size:10pt;" data-contrast="auto" lang="EN-US">Short-term rentals and investor purchases, which have contributed to our housing affordability challenges. </span>
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<span data-contrast="auto" lang="EN-US">The City of Phoenix is dedicated to creating and preserving a variety of housing options for residents of all income levels and backgrounds. The City knows there is a need for more affordable housing and there is capacity to create, support and accommodate more housing of all types in the future. Prioritizing housing ensures Phoenix is a vibrant, inclusive community with housing choices for all.</span>
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<a href="/housingsite/Documents/PHX_HNA_FINAL_05-02-24.pdf" target="_blank">
<span data-contrast="auto" lang="EN-US">Read the full</span>
<span data-contrast="none" lang="EN-US">
<span data-ccp-charstyle="Hyperlink"> Housing Needs Assessment</span>
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<a href="https://www.youtube.com/live/9X2s_kvmLdY" target="_blank">
<span data-contrast="auto" lang="EN-US">Watch the full presentation</span>
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<span data-ccp-charstyle="Hyperlink"> to City Council</span>
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<a href="/housing/plan" target="_blank" rel="noreferrer noopener">
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<span data-ccp-charstyle="Hyperlink">Explore the Housing Phoenix Plan.</span>
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