Gorman and Company is the first company to receive the state housing tax credit and plans to build more than 350 affordable units near Glendale and 67th Ave.
GLENDALE, Arizona – Demand for affordable housing is increasing in the Valley. State experts say Arizona is missing hundreds of thousands of units and the fighting is heating up.
A year ago, Arizona Housing Director Tom Simplot said Arizona was 250,000 short of units for statewide needs.
“We now know with the influx of new residents and the escalating number, which has grown to 270,000 units, that we need across Arizona,” Simplot said. The greatest demand is in Maricopa County.
The new state housing tax credit program will be used to help developers fund part of their project costs. It was signed by Governor Doug Ducey in 2021. The legislation opens up $4 million each year for four years that could be used to mobilize up to $160 million to build affordable homes.
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Gorman and Company is the first developer to receive federal residential real estate tax credits from the Arizona Department of Housing. They use it to buy an empty 13-acre lot near 67th Ave. and Glendale into hundreds of new affordable housing units, said Brian Swanton, the company’s President and CEO.
“It’s going to be a very high quality affordable housing development here in Glendale,” Swanton said. The development will be called Centerline on Glendale and will house more than 350 affordable units. The entire development will cost more than $90 million. The company received a $2 million state housing tax credit for part of the project.
“It encourages private companies that are taxpayers in the state to reinvest their tax liability into the production of affordable housing,” Swanton said. “It’s a great way to include private activities in solving a very complex problem, which is the lack of affordable housing. ”
This new worker housing is open to households earning 60 percent or less of the national median income. Swanton said it will appeal to families making less than $50,000 a year.
Swanton estimates that the project will take around two years to complete due to labor shortages and supply chain bottlenecks. It also includes plans for a dedicated on-site commercial kitchen for up to 100 entrepreneurs and aspiring chefs to prepare and serve food in the community.
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