Phoenix buying land from Isaac and Alhambra school districts for affordable housing units

PHOENIX — The city of Phoenix is set to spend $5.4 million to buy two parcels of land from local school districts to facilitate the creation of new affordable housing.

The Phoenix City Council voted last week to purchase 4.56 acres from the beleaguered Isaac School District for $3.1 million for and 5.54 acres from the Alhambra School District for $2.3 million.

However, the city won’t own the land for long. The property will be sold to developers on the condition that they use it for affordable housing for at least 40 years.

Why is Phoenix involved in land purchase?

State laws restrict the way school districts can sell or lease property. Phoenix’s involvement will help speed up the development process with no financial impact on the city, according to a news release.

“A recent housing needs assessment determined that Phoenix is short about 59,000 affordable and available units for low- and very-low income households at or below 50% of the area median income,” Titus Mathew, the city’s housing director, said in the release. “These public-private partnerships secure land to help bridge that gap, and to create more housing options for residents at all income levels and family sizes.”

The property the Isaac School District is selling is at 2911 and 2941 N. 43rd Ave. That land will be developed to support the Wild Rose Flats Affordable Housing Project, which will offer 72 units.

The Alhambra School District is selling land at 3832 Grand Ave. This parcel will be converted into the Salamanca Square Affordable Housing Project, which is set to create 192 units.

Construction on both projects is set to begin in 2026.

Mayor hopes purchase will help troubled school district

Mayor Kate Gallego said she hoped this purchase would help the Isaac School District cut down on its debt.

“Isaac School District is facing tough challenges related to its budget deficit,” Gallego said before Wednesday’s vote. “This is an exciting win-win where we are able to move forward with building much needed housing and help one of our important school districts in this city in a time of their financial need.”

The district reportedly accumulated negative cash balances in the $20 million range and was placed under a receivership in January.

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