PowerPoint Presentation (Updated 2/10/2023)

City of Glendale — Regular Meeting (2023-02-14)

View PDF Item 2 Meeting page

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Affordable Housing Development 
Incentive Program
City Council Workshop, February 14, 2023

Presentation Overview
2
• Community Need
• Applicable Council-adopted Policies
• Arizona Department of Housing (ADOH) 
Program
• Incentive Program Overview & Process
• Developer Pathways
• Administrative Award Process (for ADOH
awarded projects only)

Housing Availability & Homelessness
3
• 22% increase in unsheltered homelessness in 
Maricopa County (2020-2022) 1
• 270,000 housing units needed statewide (ADOH) 2
• 143,998 units needed for 30% AMI households 3
• 68% increase in apartment rent since 2017 4
1 Source:  www.azmag.gov
2 Source:  https://housing.az.gov/sites/default/files/ADOH_FY2022_Annual_Report.pdf
3 Source:  https://nlihc.org/housing-needs-by-state/arizona
4 Source:  https://azmag.gov/Programs/Maps-and-Data/Land-Use-and-Real-Estate/Housing-Data-Explorer

Affordable Housing Needs in Glendale
4
• 17.3% of residents are within poverty threshold
– 43,186 persons 
– 14,995 households
• Existing Affordable Units:
– 9 developments, 779 units
• 2 mixed-income (284 units), expire 2024 and 2031
• 7 100% affordable, expire 2034-2053
• Affordable Units in Process:
– 7 developments, 1,306 units

Applicable General Plan Policies
5
• HE-1.1 The City should partner with the private 
sector to achieve goals for safe, affordable housing 
and coordinate housing programs and services to 
ensure consistency with the current Consolidated 
Plan
• HE-3.1 The City should create and implement 
incentives for the private development of affordable 
housing and special needs housing using 
mechanisms such as fee waivers or fee reductions, 
fast track permitting, and density increases or 
transfers.

Applicable Consolidated Plan Goals
6
• Goal 1:  Promote Access to Decent Affordable 
Housing. Glendale will work to promote access 
to affordable quality housing.
• Goal 2:  Increase Access to Homeless 
Services/Housing.  Glendale will identify ways to 
partner with government, nonprofit, and private 
sector to offer additional emergency shelter, 
transitional housing, and permanent and 
supportive housing.

ADOH Qualified Allocation Plan
7
• Developed based on public input
• Approved by the Governor
• Addresses all the following:
– Application/award process
– Award limits & set asides
– Threshold eligibility
– Selection criteria
– Underwriting standards
– Post-award requirements
– Compliance monitoring

ADOH Threshold Eligibility
8
• Applicant Experience
• Principals (specific disqualifying criteria)
• LIHTC Management Experience
• Site Control
• Market Need
• Funding Sources
• Incompatible Uses/Locations
• Site, Zoning, Infrastructure

ADOH Minimum Income Requirements
9
• Federal limits allow for mixed-income (must 
meet one of the following):
– 20% of the units are rent restricted and occupied by 
households at 50% Area Median Income or less
– 40% of the units are rent restricted and occupied by 
households at 60% Area Median Income or less
• ADOH’s Qualified Allocation Plan encourages 
“targeting” of units to income levels lower than 
these federal limits

10
ADOH Mandates if Awarded
• 30-year rent restriction
• Declaration of Affirmative 
Land Use & Restrictive 
Covenants Agreement (LURA)
• Annual physical inspection of 
project and review of resident 
records
• IRS notification for 
noncompliance issues
• Notification for change of 
management
• Approval for change in 
ownership
• Payment of compliance 
monitoring fees

Incentive Program Overview
11
• Fee Waiver (new projects)
• Rebate (if requested no later than 3 months after 
issuance of Certificate of Occupancy)
• Applies only to fees shown on the Community 
Development Fee Schedule
• Does not apply to Development Impact Fees
• Must be compliant with all City regulations

Incentive Program Process
12
• Applicant fee waiver/rebate request letter:
– Project Narrative
– Development Experience
– Ownership Intention
– Management Intention
– Special Populations, Amenities, Services
– Advancement of City Objectives (compliance with 
Consolidated Plan, General Plan, etc.)
– ADOH Award Letter (if applicable)

Developer Pathways
13

Administrative Award Process for ADOH
Awarded Projects Only 
14
Developer Submits 
Request Letter
Community Services 
Staff Review & 
Validation with 
ADOH
Staff 
Recommendation to 
City Manager
City Manager 
Approves/Denies
Approval/Denial Copy to:
Applicant
City Council
Development Services
Economic Development
Budget & Finance

Council Direction Requested
15
• City Code Chapter 2, Article I, Section 2-3, add (e):
“Any of the community development fees may be waived or 
rebated by the city council as an incentive to attract the 
development of housing units that will be maintained as 
affordable for a period of no less than 30 years upon a 
finding that the waiver or rebate is in the best interests of 
the City of Glendale.  The city council delegates its authority 
to the city manager to waive or rebate, in writing, 100% of 
community development fees for recipients of Arizona 
Department of Housing tax credit awards and to provide a 
copy of the waiver or rebate notice to the city council.”