Arizona Daily Sun
Last week, the Flagstaff City Council approved the measure, which will go to support a project by Foundation for Senior Living to construct the apartment complex on the site of the old Catholic school.
The project is set to come in two phases. First, the San Francisco Square Apartments will serve seniors earning up to 80% of the area median income, followed by the Aspen Lofts Apartments on the same site. The Aspen Lofts units will serve individuals and families earning up to 60% of the area median income.
"These two projects taken together are going to have a huge positive impact on seniors and families in our community. I can't wait to help welcome our neighbors to their new homes," said Mayor Becky Daggett in a statement.
That project has been years in the making, and the city is not the only government providing funding to support the project. The project has also received several million dollars in state and federal funding, and it could receive additional support through state tax credits this summer.
Steve Hastings , the Foundation for Senior Living chief of real estate services, said the exact timeline for construction is still somewhat unclear and heavily dependent on weather.
Hastings said his group is expecting to receive another allocation of funding in June through tax credits. If received, construction is likely to occur next spring, he said.
"As soon as the ground thaws in the spring of 2025, we'll start construction," Hastings said.
The funding comes by way of the city's rental incentive bond program, which was approved by voters in 2022.
That proposition included $5 million in bond funding that the city could then use to support projects and facilitate the construction or preservation of affordable housing within the city.
That money is provided to the foundation in the form of a loan, which will be payback after 30 years. During that time, those units must remain designated affordable housing.
If the units remain designated affordable housing another 20 years after that initial period, the city would forgive the loan.
After this initial award of $3.33 million , the Rental Incentive Bond Program has a remaining balance of $1.67 million in program funds. The remaining funds will be made available for a subsequent round of awards in the future, according to city housing staff.
But the city may be able to provide more financial support to future housing projects than just the money allocated by voters in 2022.
Last year the city directed $1.1 million from the city's general fund to support an affordable project as part of the Timber Sky master plan neighborhood. That effort, a collaboration between Minnesota -based developer ROERS Companies and Vintage Partners , is set to bring 221 designated affordable units.
Both expenditures are meant to support the city's 10-year Housing Plan, which calls for the creation of housing options for households at all income levels and family sizes occupied by local residents.