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Scottsdale
Affordable housing vanishing in Scottsdale
- By Wayne Schutsky, Progress Managing Editor
The booming market for Scottsdale homes and apartments is compounding an existing housing affordability crisis in the city.
Over the past two years, the median sales price for a Scottsdale home jumped 27 percent to $745,000. Even historically-affordable 85257 in southern Scottsdale saw prices jump 32 percent to over $454,000 during that time.
Meanwhile the apartment rental market also saw median rents rise 8.6 percent over the past year citywide, according to Apartment List. Scottsdale currently has the highest median rent for a two-bedroom in the Valley at $1,640
The lack of affordable housing stock is pricing out seniors on a fixed income and working-class people who staff much of the service-industry jobs that support the city’s tourism industry.
“Scottsdale has become increasingly unaffordable to many of the workers who support the community and insufficient housing for workers puts at risk the economic sustainability of our local community,” said Greg Bestgen, the city’s Human Services Director.
Joanna Carr, research and policy director for the Arizona Housing Coalition, said cities must address the issue.
“Cities really need to be more proactive in making sure that people have a place to call home and an affordable place to call home…certainly, the creation of segregated low-income neighborhoods is a byproduct really of housing inaffordability as is rising homelessness and increased evictions,” she said.
At a recent discussion on next year’s budget, City Council briefly discussed the issue and how it could fund potential solutions.
But Councilwoman Linda Milhaven suggested that discussion was premature because the city has not even defined what type of affordable housing it wants to create.
“We need a more robust conversation about what that means, because there is affordable housing, which is workforce housing…and then there is the homeless problem, which part of what we did with the (pandemic relief) money.”
Scottsdale has dedicated funding to address its increasing homeless population in recent years.
Scottsdale’s annual Point-in-Time count – part of a larger single-day national survey of people living on the street – found the number of homeless people contacted in the city increased from 50 in 2017 to 102 people in 2020.
Bestgen cautioned that count is just a “glimpse” of the problem.
He said Phoenix Rescue Mission, a non-profit contracted by the city to provide services to homeless individuals, contacted 189 people living on the street in Scottsdale this year.
Carr said the increase in federal funding in response to the pandemic has offered cities an opportunity to address homelessness or people at risk of losing housing.
“We have a real opportunity to use the funds that are coming in for housing and homelessness to bring more units online or to create strategies to preserve existing affordable housing,” she said.
According to the city, at least $3 million of the city’s $29.6-million CARES Act allocation was reserved for the city’s most vulnerable citizens.
The city’s Vista del Camino Community Center has provided $2.7 million in rent and mortgage assistance since last March, a significant increase over the $230,000 it provides in a typical year.
The city also used a combination of federal funds to set up a temporary shelter for the homeless at the Rodeway Inn in southern Scottsdale.
The shelter closed in February after providing temporary housing for 41 people, including 24 over the age of 55 and 41 with disabilities.
The city paid non-profit Community Bridges $178,576 from its CARES Act allocation to run the shelter and used over $500,000 from federal community development block grant funds to cover rent for the property.
Bestgen said the city is looking for additional CDBG funds to reopen the hotel during summer.
The city is also exploring longer-term solutions.
In February, Mayor David Ortega asked city staff to explore options to purchase a property to provide housing for homeless people.
The city also used CARES Act funds to launch Scottsdale Works, which provides part-time employment for homeless individuals.
The program pays five participants minimum wage for five hours of work three days a week with the city’s Brick-by-Brick program, which produces earthen bricks that can later be used for city projects or housing for the homeless.
Bestgen said the city plans to use those bricks to build affordable housing in Scottsdale, though those plans are still in the early stages.
“We have been approached by an outside party and are partnering on plans to build our first tiny house as part of a regional pilot program if all things work out,” he said.
But as Milhaven pointed out, addressing homelessness is only a piece of the puzzle.
There is also the problem surrounding the lack of affordable workforce housing in the city, an issue Scottsdale has done little to address in the past two decades.
Carr said building new affordable housing doesn’t have to be the only solution.
Cities can also leverage Section 8 vouchers and other subsidies to help residents afford housing, though even with subsidies, it is becoming increasingly difficult to find landlords willing to participate in the programs, she said.
With rising rental rates citywide, landlords can likely find tenants on their own that will pay more than the maximum price allowed under the voucher program.
In February, Bestgen said the city currently offers 735 housing choice vouchers.
As of January, there were 1,130 families on the voucher program waiting list with an approximate wait time 3-4 years, according to the Scottsdale Housing Agency annual plan.
Carr said cities in Arizona that are looking to provide more affordable housing for residents are hamstrung by the state’s ban on inclusionary zoning, or zoning that requires a portion of new construction to be dedicated to affordable housing.
She said Arizona is one of only three states that bans cities from implementing inclusionary zoning.
“It’s a real challenge, because then the cities have to incentivize developers to include affordable units, and why would they if they don’t have to?” Carr said.
According to the Urban Institute, developers have a number of disincentives to build affordable housing, including rising land, construction and labor costs and limited availability of federal and state grants to offset the costs.
Still, Carr said there are other incentives cities can provide. That includes zoning exceptions to increase density or heights or lower parking requirements.
“With density, there’s lower land cost and you leverage more profit, and so ideally we’d want to see them able to spread the costs around and provide more affordable housing,” Carr said.
Currently, the Scottsdale City Code allows Council to approve exceptions for height, density, parking and other development requirements in some areas of the city in exchange for a host of public benefits, including a commitment to build affordable housing.
But, so far, developers have more often opted to provide other benefits like public open space or cultural improvements such as public art.
The Miller, a proposed Toll Brothers apartment project near downtown Scottsdale, would be the first development in Scottsdale to receive bonuses in exchange for offering below market-rate workforce housing if it is approved by Council later this year.
The developer said it hopes the project inspires others to take on similar models.
The Miller on its own won’t make a significant dent in the affordable housing issue.
A representative for Toll Brothers told the Progress the developer anticipates reserving 9 percent of the complex – or only 13 units – for affordable housing.
In Scottsdale, dozens of projects have received bonus density and height exceptions in recent years but the city has never made the bonuses contingent on building affordable housing.
Of the 15 multifamily apartment or condo projects approved by City Council in 2019 and 2020, 11 were explicitly described as “luxury” or “high-end” in marketing materials or plans submitted to the city.
Those luxury complexes accounted for 77 percent of the over 4,700 multifamily units approved by Council during that time.
Rosewood Homes Announces Two New Neighborhoods at Storyrock in North Scottsdale
Award-winning Scottsdale-based Rosewood Homes has closed escrow and will immediately commence development for two luxury home neighborhoods within the new Storyrock community in north Scottsdale.
Scottsdale’s new 462-acre Storyrock community is located just east of Troon Mountain and bordered on three sides by the 30,000-acre McDowell Sonoran Preserve near 128th Street and Ranch Gate Road.
“Storyrock is an incredibly gorgeous and unique property so we’ve designed updated versions of our most popular homes plus some new plans, architectural styles and some exciting new features exclusively for Storyrock,” says David Kitnick, president and founder of Rosewood Homes.
Rosewood will offer two of Storyrock’s premier neighborhoods with sweeping views of the McDowell Mountains, Four Peaks and Troon Mountain along with access to over 150 miles of established trails within the McDowell Sonoran Preserve, and just a few minutes from fine dining, world-class golf and more.
Rosewood Canyon at Storyrock will offer 19 well-detailed homes ranging from approximately 3,650 to 4,250 square feet in a gorgeous setting with open space on three sides. Rosewood’s 37 home Rosewood Highlands at Storyrock will be located on one of the highest elevations in Storyrock with inspiring mountain views with homes ranging from approximately 4,050 to over 5,700 square feet.
Each Rosewood residence at Storyrock is designed to provide seamless indoor/outdoor living with large picture windows, disappearing walls of glass, courtyards, outdoor fireplaces and more, including an optional 600 square foot view deck. Pre-sales are expected to begin this fall followed by a Model Home Grand Opening in 2022. To learn more, visit RosewoodAtStoryrock.com.
SEVRAR
Queen Creek ranks as the 10th best suburb to move to in 2021
PHOENIX — Queen Creek ranks as one of the nation’s top suburbs to move to this year, according to a real estate website.
The town ranks 10th on the list by Homes.com, which looked at various factors to come up with the rankings including average home price and quality of schools.
“It’s really great to see a third party organization or group recognize all the work that we’ve been putting into developing the community and building the community literally from scratch,” John Kross, town manager, told KTAR News 92.3 FM.
The town has come a long way. It started out as a farming and agricultural community, and over the past decade has seen tremendous growth. It’s now one of the fastest-growing communities in the state.Related Links
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Kross noted the housing market in the area “has become extremely competitive.”
“One of the more attractive parts of our community, when you compare us to other suburbs within the Phoenix metropolitan area, is that you tend to get a little bit larger lot than you perhaps could get in some of the other communities,” he said. “That can be very, very attractive to a lot of new buyers.”
Homes.com has the median listing price of a house in Queen Creek at $327,100 and the median square footage at 2,310.
It also gives the town an A- for the quality of schools, which Kross said is another reason why many people are moving to Queen Creek.
“If you are someone who is interested in choice, there are a lot of choices for you and your family with respect to educational options, from a technical sort of aspect or pathway to more of a traditional aspect as well and anything in between,” he said.
To keep up with that growth, Queen Creek has been investing a lot on infrastructure and transportation.
“We are literally building a brand new community from scratch,” Kross said. “So that means all new utilities that have never been there before, which is the case for most of the community.”
The town is halfway through completing its 10-year transportation improvement plan that includes widening arterial roads and extending State Route 24.
“A lot of progress has been made but we recognize there’s still progress we’ll continue to make,” he said.
Final approvals for Gilbert bungalows
By Mike Sunnucks | Rose Law Group Reporter (Photo via Bungalows)
The Gilbert Town Council will vote May 4 on final plat approvals for the Bungalows on Ash development planned for Gilbert Road and Ash Street.
Cavan Companies is developing the 165 single-story, for-rent units along with a clubhouse, pool and other amenities. Cavan has developed other bungalow communities.
The development sits on 14.8 acres. The final plat approvals also include public utility easements.
The parcel is vacant and sits south of Baseline Road.
NexMetro plans rental home community in Mesa
By East Valley Tribune
NexMetro Communities, a Valley developer of luxury leased-home neighborhoods, is bringing its innovative approach to single-family rental homes with a new community in Mesa.
Avilla Enclave, a 96-home neighborhood in Mesa, is one of six new communities it plans this year in the Phoenix Metro area.
The company boasts its housing provides “renters with the lifestyle of a new home with the carefree maintenance of a lease.”
“The single-family rental home category has experienced exponential demand from individuals and families preferring the ease that a rental lifestyle brings, especially in the Valley,” said Brian Rosenbaum, executive managing director of NexMetro Communities’ Phoenix Division.
Rising home values, growth lower Mesa taxes
- By Tom Scanlon, Tribune Managing Editor
Ah, the beauty of running a rapidly-expanding city: You can charge less, yet still have much more money to spend.
At a study session last week, the Mesa City Council was delighted to hear residents will be paying more in taxes this year.
Why?
Because Mesa renters and home and business owners will be paying less than expected.
During a presentation last May, council was told the $100 million Mesa Moves transportation bond would show up as an added $28 on a median homeowner’s tax bill.
Now, five months after Mesa voters approved the bond, Council received an update.
The owner of a median home ($279,000 value) is now expected to pay only about $10 more in taxes compared to last year, thanks to all the new construction that has expanded the tax base, lower borrowing rates due to the city’s AAA rating and other factors.
Though the numbers are still preliminary, wide grins spread over the faces of council members, with some giggles of delight.
“Ten dollars is great compared to $28,” said Councilwoman Julie Spilsbury.
As City Manager Chris Brady put it: “The way I like to pitch it is it’s $10 for the whole year to add $100 million of street improvements.”
Mayor John Giles said credit goes to the city management and staff.
“The reason this is $10 and not $28 is the actions of our staff,” Giles said.
“The bad news is you pay property taxes; the good news is there’s a great story to tell as far as the city of Mesa’s management.”
Mesa does not have a primary tax. The Mesa Moves bond will show up on the secondary tax levy of home and commercial property owners tax bills; renters pay this indirectly, as their landlords take on the charges.
Last year, the owner of a home valued at $279,000 paid about $160 in Mesa taxes; this year, that will rise to $170.
According to Ryan Wimmer, the city’s treasurer, last year, the city collected $41.7 million, with a tax rate of $1.1171.
This year, the city will collect around $45.1 million with a tax rate of $1.1319.
Tax statements are sent out in September, with half-year payments due Oct. 1 and March 1, 2022, according to Wimmer.
Homeowners pay about 47 percent of the total levy, with commercial owners contributing 28 percent and non-primary residential owners (which includes multi-family rental owners) 22 percent.
Combined, they will pay about $3.4 million more than last year due to the $100 million Mesa Moves bond, which is spread over six years.
“In addition to the general obligation bonds approved in 2020, the levy includes funding for bonds approved in 2008, 2012, 2013, 2014, and 2018,” Wimmer said.
In 2014, Mesa owners paid a levy rate of $1.1853, totaling $33.4 million. While the proposed rate of $1.1319 is 5 percent lower than the rate paid seven years ago, the city is collecting $45.1 million from taxpayers, a whopping 35 percent more than it collected in 2014.
Two reasons, for this: An expanding tax base, combined with accelerating home values.
In 2014, a median home in Mesa was worth $134,000. That figure rose in each of the succeeding years and now a median home in Mesa is valued at $279,000.
Tucson
Strong home sales in Tucson
By Mike Sunnucks | Rose Law Group Reporter
The Tucson housing market posted a strong jump in new home sales and continues to see price gains, according to new data from real estate research Zonda.
“It’s still very healthy. Demand is still there,“ said Steven Hensley, advisory manager for Zonda.
Hensley said new home sales in metropolitan Tucson are up 14% compared to a year ago, according to new numbers from Zonda. Sales of new homes rose 22% from mid-January to mid-March compared to the previous period.
Hensley said home prices continue to be healthy while supplies of new homes are down. The mirror national and regional trends.
Hensley said the median price for a new home is $360,000 in Tucson. The median prices for an existing home is $310,000 and the inventory of homes for sale is down 61% from a year ago, he said.
WEMAR
White Mountain
“Talking Trash” series to focus on illegal trash dumping on Navajo Nation
WINDOW ROCK, Ariz. — On April 28, Navajo Nation First Lady Phefelia Nez, Second Lady Dottie Lizer and the Navajo Nation Environmental Protection Agency Resource Conservation and Recovery Program announced the “Talking Trash” series, a virtual discussion that will take place over a 14-month period, which will focus on the hazardous and adverse effects of illegal trash dumping on the Navajo Nation.
The first discussion of the series is now featured on the “Navajo Nation OPVP Communications” YouTube channel at www.youtube.com/watch?v=i7051REdkvU.
“With the help of Navajo EPA, we hope to make the public more aware of the problems of illegal dumping on the Navajo Nation and how huge of problem it has become. As with many initiatives like this one, the more the public knows, the more likely they will be a part of the solution. We need to work together to keep our homelands beautiful,” Nez said.
The monthly series will cover different aspects including how to report illegal trash dumping, garbage disposal costs, human health impacts, open trash burning, household hazardous waste, recycling, composting, zero waste, conservation, sustainability and Navajo ecological knowledge.
“Our vision is to have a clean, safe, and healthy environment and community. Our beautiful lands need to be free from litter and harmful materials, such as abandoned automobiles and auto parts, scrap tires, appliances, furniture, yard waste, and household trash. If it is not addressed, illegal dumps attract hazardous waste like asbestos, household chemicals and paints, and auto fluids,” Lizer said.
The Navajo Nation EPA is committed to protecting Mother Earth and Father Sky and all living beings through environmental laws and regulations by honoring Dine’ teachings and culture.
More information on the series or other events and announcements, please download the Office of the First Lady and Second Lady app at https://www.nnoflsl.com/app or go to the Apple App Store or Google Play and search “Navajo 1st Lady & 2nd Lady,” or visit the Office of the First Lady and Second Lady website at www.nnoflsl.com.
Information provided by the Office of the Navajo Nation President and Vice President