State program that supported new Glendale affordable housing project is set to expire

GLENDALE — Local leaders on Thursday celebrated the opening of a new West Valley affordable housing project that received support from a state program that is in danger of expiring.

Centerline on Glendale offers 368 mixed-income apartment units near 67th Avenue and Glendale Road in Glendale.

The project was the first to be financed through Arizona’s Low-Income Housing Tax Credit (LIHTC) program, which complements federal housing tax credits to incentivize companies to build affordable homes.

Former Gov. Doug Ducey originally signed legislation to allocate $4 million per year for the program. Now, Gov. Katie Hobbs is urging lawmakers to renew the funding, which expires at the end of this year.

“The Low-Income Housing Tax Credit was instrumental in making this project happen. … It is such an important piece of the financing puzzle that goes into making projects like this possible and successful,” she said during Thursday’s groundbreaking event.

Affordable housing is a big issue in Arizona

Hobbs’ proposed budget includes $10 million a year to extend and expand the LIHTC through 2031. Housing supply has remained a challenge for the state, with prices soaring by more than 50% since 2020, according to Zillow.

On Wednesday, the Republican-led Arizona Senate passed its own proposal to tackle the state’s housing shortage. SB1229, known as the Arizona Starter Homes Act, would prevent local governments from regulating certain home design aspects and lot sizes.

Proponents argue this would remove red tape for builders and create more affordable housing options for buyers.

Hobbs vetoed a similar bill, one that was opposed by the League of Arizona Cities and Towns, in 2024. Some organizations also cited public safety concerns, which proponents of the legislation say they’ve addressed in the new version.

Hobbs, a Democrat, did not commit to whether she would sign the legislation if the House passes it, but she emphasized the need for compromise.

“At the end of the day, if we’re going to cut red tape, it needs to be for the purpose of making housing that’s more attainable for more Arizonans,” she said.

Related

Gov. Katie Hobbs vetoes Arizona Starter Homes Act, which drew pushback from citiesShort-term rental advocates tout impact on Arizona economyMaricopa County celebrates new affordable housing community in BuckeyeSaddleback community in Peoria unveils debut model home collectionScottsdale developer DMB sells off 308 home lots in BuckeyeValley takes 4 of top 10 spots in ranking of best US cities for 1st-time homebuyers