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Tucson seeks tax credits to advance affordable housing development

Tucson seeks tax credits to advance affordable housing development
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TUCSON, Ariz. (KGUN) — As Tucson grapples with a growing demand for affordable housing, city officials are looking to develop two long-vacant parcels near the corner of St. Mary’s Road and North Granada Avenue into new residential units in the city’s urban core.

The proposed development would span two neighborhoods — Barrio Santa Anita and El Presidio — and is part of a broader effort to address what city leaders describe as a significant housing shortage. According to Ann Chanacka, director of Housing and Community Development for the city, the need is substantial.

“Within the city of Tucson itself, we need 35 thousand units of housing over the next 10 years,” Chanacka said, citing findings from a city-commissioned housing study.

Under a directive to prioritize housing construction on city-owned land, officials identified the two empty lots as potential sites for affordable units. Plans for the project include a mix of one-, two- and three-bedroom apartments intended to serve a range of household sizes. However, whether the project moves forward depends largely on securing outside funding.

“It’s a program through the federal IRS, And then the tax credits are allocated by states, So Arizona Department of Housing,” Chanacka said, explaining that the city is seeking low-income housing tax credits, a key financing tool widely used across the country to fund affordable housing developments.

Nearby residents say they recognize the need for more housing options and have largely expressed support for the proposal. Janet Roth, who lives next to one of the vacant lots on Davis Street, said she has watched the property sit unused for decades.

“I’m definitely in support, we’ve been working on this project… the lots been vacant for about 20 years, 25 maybe, And the city owns it now,” Roth said.

Gary Wolf, who lives behind the lot at Granada Avenue and St. Mary’s Road, also backs the plan but has raised concerns about how the development could affect his access to parking.

“The only concern that I have, When the city developed these plans They eliminated my only access, to my back parking lot,” Wolf said.

Wolf said he has retained an attorney and is negotiating with city officials to find a compromise that would preserve long-standing access to the space.

“As long as the city is willing to give me access to my back parking lot Which historically has been there for fifty years, I’m fully supportive of the project,” he said.

City officials expect a decision from the state on funding this summer, which could determine whether the long-anticipated development moves from planning stages to construction.

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Eddie Celaya is a multimedia journalist at KGUN 9. Born in Tucson and raised in the Phoenix area, Eddie is a life-long Arizonan and graduate of the University of Arizona who loves the desert and mountains and hates the cold. Previously, Eddie worked in print media at the Arizona Daily Star. Share your story ideas with Eddie at edward.celaya@kgun9.com, or by connecting on Facebook or Instagram.