Arizona housing department invests $10M to rehabilitate affordable units
Feb 19, 2022, 5:00 AM
PHOENIX — The Arizona Department of Housing announced Wednesday it is investing $10 million to rehabilitate properties built with low-income tax credits.
Properties acquired or built with low-income housing tax credits can be put on the open market after 15 years, with some owners being forced to choose this route without assistance since maintenance and other updates can be too costly.
The department said in a press release the funding will preserve up to 500 units in the state’s affordable housing stock.
“We’re committed to ensuring Arizona families have access to safe and reliable housing,” Gov. Doug Ducey said in the release.
“Today’s investment will incentivize low-income housing tax credit property owners to rehabilitate instead of selling, allowing more Arizonans in need to keep a roof over their heads.”
Tom Simplot, director of the department, said if the properties reach the open market, new owners can convert the housing to market-rate and raise rents by 80-100% or more.
“This plan would provide funding for the current LIHTC owner to improve the units and keep them in the affordable housing inventory,” Simplot said.
“It is much less expensive to keep an apartment unit in the affordable market than it is to build new.”