Public Housing Redevelopment Presentation

City of Chandler — Work Session (2021-07-12)

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Public Housing Redevelopment
Leah Powell, Neighborhood Resources Director 
Amy Jacobson, Housing and Redevelopment Manager
Neil Calfee, Calfee Development Advisors
PHAC Work Session
July 12, 2021

Agenda
2
• Introductions 
• Public Housing at a Glance
• Redevelopment Needs
• Recap Progress 
• Developer Selection  
• Financing Redevelopment of 
Public Housing
• Timeline

Chandler 
Housing 
Mission 
Statement
Work together with our community partners 
to maintain safe, decent and affordable 
housing for low-income individuals 
and families within our community.
3

Chandler 
Public Housing 
at a Glance
4
o4 Family Multi-family sites: 
o
163 units (one to five bedrooms) 
o1 Senior Multi-family site: 
o
37 units (32 one- and 34 two-bedrooms) 
oSingle-family scattered sites: 
o
103 homes (mix of two- to five-bedrooms)

5
Proximity to 
Services and 
Amenities
Locations:
Site 1: 130 N. Hamilton
Site 2: 210 N. McQueen
Site 3: 73 S. Hamilton
Site 4: 660 S. Palm Ln
Site 5: 127 N. Kingston
Trails End: Vacant Land
Chandler Blvd
Pecos Road
Frye Road
Chandler 
High
Boys & 
Girls Club
McQueen Road
Arizona Ave
Chandler 
Public 
Library
Willis Jr. 
High
San Marcos 
Elementary
Salvation 
Army
Walmart
Frye 
Elementary
ICAN & 
Valleywise 
Health
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1
3
5
2
TRAILS
END

Defining the 
Problem
Infrastructure Challenges in Public 
Housing
• Chandler’s aging units - Built in 1972
• Major Capital Needs $22M in next 20 years
• Significant Plumbing and Electrical Systems 
• Replacement Repair/Maintenance costs  
increasing  
• Properties are aging- reaching end of 
useful life
6

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Interior Unit

Public 
Housing 
Capital Needs
*Based on 2020 
data
Public Housing Capital Needs by Site
Short-Term Needs
Long-Term Needs
Site 1: 130 N. Hamilton
Site 2: 210 N. McQueen
Site 3: 73 S. Hamilton
Site 4: 660 S. Palm Lane
Site 5: 127 N. Kingston 
$2,061,229
$1,456,105
$2,0108,044
$743,527
$1,044,625
$3,587,516
$4,416,566
$2,442,284
$2,286,382
$2,083,311
Chandler Housing 
(20-Year Estimate)
$22M Capital Needs*
Chandler Housing (20-Year Estimate)
$14M Capital Funds*
($7.5M Deficit)

Public 
Housing 
Financial 
Trend
HUD Revenue and Expenses

Overall 
Portfolio 
Strategy
•
Improve physical conditions
•
Opportunities for Public/Private Development
•
Secure improved access to affordable housing
•
Reposition the portfolio for long term success
•
Leverage Current Land Inventory
•
Create Mixed-Use & Mixed-Income, Including Market
Rate Housing 
•
Increase Housing Choice
•
Earn Development Fees
•
Increase Senior Housing Inventory
10

How Do We 
Meet Our 
Objectives?
Reposition Public Housing Through
Rental Assistance Demonstration 
(RAD)
Unit is taken out of the Federal Public Housing 
inventory and converted from Public Housing 
(Section 9) to Section 8 assistance
Preserve affordable housing availability, using a 
project-based unit or Housing Choice Voucher

Benefits of 
Conversions  
Avondale Public Housing Site
BEFORE
Avondale Public Housing Site
AFTER

•
June 2019: RAD Consultant for Site Feasibility and 
Development Structure
•
Oct. 7, 2019: PHAC RAD Work Session 
•
June 2020: Completed Capital Needs Assessment (CNA)
•
Oct. 2020: Submitted Public Housing Five-Year Plan
•
Oct. & Dec. 2020: Conducted Public Housing Resident Initial  
Meetings
•
Sept 2020: Issued RFQE  
•
Dec. 2020: Issued RFP for RAD Developer(s)
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Recap of Progress

Request for 
Proposal
•
Located at 1032 E. Trails End 
•
Vacant Land (3.48 acres) 
•
New Construction
•
Family or Senior Housing 
•
Resident Community Center
•
Amenities
City-Owned Vacant Land
Trails End

Request for  
Proposal
Public Housing | Site 3  
•
Located at 73 S. Hamilton
•
Family and/or Senior Housing Project
•
Currently 40 units (one to five bedroom units)
•
7.42 acres + additional land
•
Demo/New Construction or Rehab
•
Housing Youth Center

Site 
Selection For 
Phase I
Vacant City-Owned Land
•
Preferred  Family Site as First Phase 
•
Reduced Relocation Costs 
•
Move Public Housing Residents onsite
•
Comply with General Plan and Area Plan
•
Create Synergy and Resident Involvement
Benefits the City | 
Trails End

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
About Gorman & Company
•
35 years of Affordable Housing and Community 
Development Experience
•
400+ people with a wide variety of experience
•
Vertically integrated: Development, Architecture, 
Construction, Asset/Property Management
•
Works closely with local governments and 
community groups to help communities meet their 
development, planning, economic and social goals

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Gracie’s Village | Tempe

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Gracie’s Village | Tempe

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Lofts at McKinley Senior Housing |Phoenix

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Madison Heights RAD Conversion
BEFORE
AFTER

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Monroe Gardens RAD Conversion
BEFORE
AFTER

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Heritage at Surprise RAD Conversion
BEFORE
AFTER

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Escobedo at Verde Vista RAD Conversion
BEFORE
AFTER

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
River at Eastline Village RAD Conversion
BEFORE
AFTER

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Affordable Housing Financial Components 
• Rental Assistance Demonstration (RAD)
• Low Income Housing Tax Credit (LIHTC)
• Layered Approach (public and private funds)
• Long-Term Ground Lease

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Example of RAD Project Financing| Soluna, Phoenix
SOURCES
First Mortgage 
$5,500,000
Low Income Housing Tax Credit 
$5,049,162
(LIHTC) Equity 
Deferred Developer Fee 
$231,557
Soft Funds 
$4,500,000
TOTAL 
$15,280,719
USES
Acquisition 
$0
Hard Costs 
$10,465,156
Soft Costs 
$4,378,133
Reserves 
$437,430
TOTAL 
$15,280,719

Revitalizing 
Communities 
Through 
Innovative 
Housing 
Partnerships
Revitalizing 
Communities 
Through Innovative 
Housing Partnerships
Additional Benefits | Trails End

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Request for Direction
• Submit Rental Assistance Demonstration Application to 
HUD
• Negotiate a Development Agreement with Gorman & 
Company to develop proposed projects for Trails End 
and Site 3 sites
• Pursue land assemblage for highest and best use

RAD 
Conversion
Next Steps in a RAD Conversion
Application
CHAP
Financing Plan Submission
PHA Significant Amendment
RAD Conversion Commitment
Closing
Construction

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Questions?