Fund helps make rentals affordable

Three years ago, the Arizona Community Foundation partnered with the Local Initiatives Support Corp. to create a fund to help jump-start affordable-housing projects. The effort launched before the region's housing market crashed.

Originally, the fund was created to help build housing for people who couldn't afford metro Phoenix's record-high home prices and rents. Of course, the region's foreclosure crisis has pushed down home prices, but has left many more people struggling to find safe housing they can afford.

The ACF Affordable Housing Fund readjusted its plan and has raised and given more than $1 million to develop affordable rentals and redevelop foreclosure homes for resale to low- and moderate-income families.

Banks, foundations, corporations and private groups have donated to the fund. The goal is to leverage the money to build more affordable housing.

So far, the fund has supported 15 affordable-housing developments, with 11 of those currently under construction or open to residents.

"A $50,000 gift alone could not create multiple units of affordable housing," said Steven Seleznow, CEO of ACF.

But he said a gift that size could be combined with others to leverage more financing and create an entire development.

Non-profit developers can receive loans of up to $75,000 but then must supply the rest of the funding. The Arizona Department of Housing has also contributed to the fund.

ACF projects in metro Phoenix so far are:

- Native American Connections, a 71-unit rental development in central Phoenix near the light rail.

- National Farm Workers Service Center's purchase, rehabilitation and resale of 106 to 120 homes in Phoenix neighborhoods with high foreclosure rates.

- Roeser Haciendas, a 45-unit rental complex in south Phoenix for senior citizens and a 49-unit rental complex for seniors in west Phoenix.

- Rehoboth Community Development Corp.'s acquisition of 15 West Valley foreclosure homes from lenders to be resold.

- Newtown Community Development Corp. and Community Land Trust's acquisition, rehabilitation and resale of 18 to 24 foreclosure homes in the East Valley.

- Marc Center of Mesa's two phases of affordable housing for people with disabilities.

- East Valley Adult Resources' Discovery Point Retirement Community, a 183-unit senior-housing project in Mesa.

Funding applications are being taken at azfoundation .org/grants.

by Catherine Reagor The Arizona Republic Dec. 1, 2010 12:00 AM





Fund helps make rentals affordable