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SENIOR AFFORDABLE HOUSING City Council Study Session March 23, 2026 Candace Cannistraro, Deputy City Manager Private/Public Partnership Background • Seniors are one of the fastest growing populations entering homelessness *Source: City of Mesa Balanced Housing Master Plan 2024 • “The City’s population is aging slightly faster than that of Maricopa County and nationwide. As the City population ages, the demand for senior- friendly housing with integrated support services will increase”* • “Over time, the City can benefit from approximately 23,400+ total housing units at monthly payments affordable for households that make 50 percent or less of the AMI ($42,000 or less)”* City-owned Land Adjacent to the Senior Center in downtown Mesa • 17, 31, and 37 W. University Drive • 0.92 acres total Purchased by the city in 2025 with federal funds for the purpose of developing senior affordable housing through a private/public partnership Subject Property Senior Center Partner Developer Commonwealth Development Company “Since our founding in 2001, Commonwealth’s core focus has been to improve lives and enhance Communities by providing high-quality housing that is affordable.” The Cove - Phoenix Lynne Village - Phoenix The Abbott – Bullhead City WHO WE ARE - The Commonwealth Companies Proposed Development – The Helix Apartments 62 Unit multi-family complex • Combination of one- and two- bedroom units • Common areas for exercise and programming • Amenity roof deck • Covered parking incorporated into first floor View from University View from 3rd Place *Concept plans only. Final design will go through the standard city process Terms of Option to Lease • Grants developer option to enter into ground lease only if LIHTC awarded in 2026 or 2027 cycle ◦ If developer wants to use HOME funds, it cannot exercise the option until after environmental review completed • Sets forth key terms that must be in ground lease: ◦Initial term of 50 years ◦ Automatic extension of 25 years if requested by developer, with conversion to a market rate rent upon first day of extension ◦50-year affordability period, which would be extended if lease is extended ◦ Standard is15-year for LIHTC and 20-year for HOME LIHTC – Low-income housing tax credits HOME - Home investment partnership programs Terms of Option to Lease • During construction phase, rent is $100/month, increases to $1,999.99/month once certificate of occupancy issued ◦ $2,000 is maximum dollar amount allowed under LIHTC ◦ LIHTC requires construction to begin by 12/31 of year following award • Option for developer to purchase land after year 25. Affordability requirement remains with the land for the full 50-year period ◦ Purchase price would be fair market value of land (developer already owns the improvements) • Partnership with non-profit for provision of support services and programming • Remainder of lease terms to be negotiated upon exercise of option Authority Requested • Asking for authority for City Manager to do the following: ◦Execute the Option to Lease and Option to Purchase Agreement ◦Negotiate remaining terms of Ground Lease and Option to Purchase Agreement and Purchase and Sale Agreement and enter into the agreements if required conditions met ◦If any of the key lease terms set forth in the Option were to change, would need Council authorization Thank You