$21M affordable-housing development coming to a south Phoenix pressured by rising rents
Megan Taros – Arizona Republic
What is now a rocky plot of land between Central and Seventh avenues was once a row of houses in need of repair and situated on an archaeological site, complicating the tenants’ ability to sell the property.
Tenants were facing a “catch-22” of being unable to afford repairs and being unable to sell. Now Indianapolis-based developer TWG Development owns the land and promises 90 units of affordable housing for people of color in south Phoenix.
“We like when our residents are from the community,” said TWG development director Travis Vencel. “They bring stability, they know the area, they know the schools. Most of our residents aren’t moving in from other areas. We’re bringing a quality, affordable option to this community.”
The $21 million project is coming together with both private and public funding, including federal, state and city money. Developers worked with the city to return human and animal remains to nearby tribes in order to be able to build on the site the city has struggled to develop.
This is TWG’s first development in Arizona. The company says its mission is to create housing that serves people of color in areas where they are at high risk of being pushed out through gentrification.
The goal of this development, where there is a clear view of light-rail construction on Central Avenue, is to help address the affordable housing crisis in the Valley as well as keep residents in the area.
“TWG has a long-term mission of expanding our footprint and doing these types of development in minority areas to keep people here in the community,” Vencel said.
Sunland Flats, which will have a swimming pool and playground for children, will have two and three-bedroom units catering to working families, something the city and the developer saw was needed in the area.
‘Sets the stage for what’s to come’
Residents have spoken out about fears of losing their homes and their neighborhood becoming unaffordable, as local business owners worry about construction and property is bought up for new development.
South Plaza, an iconic shopping center just south of Sunland Flats at Southern Avenue, already has new owners. Their plans for a new grocery store were met with opposition from community members who want something they feel would better serve residents.
Grassroots groups such as Four Lanes or No Train pushed back on the light rail extension because construction would eliminate all but one lane on either side of Central Avenue. Business owners and residents were not included in the decision-making process, light-rail opponents maintained. The plan was kicked back to voters where it was approved.
Critics have also said that affordable housing in the area is not affordable enough. Sunland Flats will be made for residents making 30% to 50% of Maricopa County’s median income, or $32,000 to $40,000 per household, depending on the household size.
“We hope the project provides quality housing in south Phoenix and eases the tremendous burden on the affordable housing market,” Vencel said. “When we target for 30% to 50% area median income, that’s an income level that doesn’t get that much attention.”
District 7 Councilmember Yassamin Ansari said she is working on bringing more types of developments like Sunland Flats so Phoenix’s Affordable Housing Plan is not just “another plan on a shelf.” She hopes such projects will encourage other developers to prioritize communities facing gentrification so Phoenix can return to being a place known for its affordability.
“With light rail going up and Phoenix growing so much, this is the kind of development you want to see: affordable, sustainable development,” Ansari said. “I really hope it sets the stage for what’s to come.”