Housing Study and Strategies Presentation

August 11, 2025  |  4:00 p.m.
City Council Conference Room
Council Work Session

Today’s Agenda

What is Housing?
It is referred to by many names:
•
Affordable Housing
•
Attainable Housing
•
Workforce Housing
•
Missing Middle Housing
•
Market Rate Housing
The goal is that a household pays no more than 30% of their income on housing including
utilities. High housing costs affect service employees and critical service personnel: teachers, EMS
workers, construction workers, nurses, etc.

National State of Housing - 2025
“The State of the Nation’s Housing 2025”, Joint Center for Housing Studies of Harvard University
High home prices and elevated interest
rates reduced homebuying to its lowest
level since the mid-1990s.
Despite an abundance of new
apartments, high rents have left more
people than ever cost burdened, and
have contributed to a sharp rise in
homelessness.
Increases in both insurance premiums
and property taxes have heightened
financial stress on homeowners and
landlords.
Federal housing support is lessening,
creating uncertainty regarding the
availability of crucial assistance
programs.

Housing IS an Economic
Development Strategy

Reasons for Housing as an
Economic Development
Strategy
•
Reliable Workforce
•
Talent Attraction
•
Poverty Reduction
•
Mixed Income Neighborhoods
•
Increased Community Diversity
•
Enhanced Economic Mobility
•
Increased Property Values and Tax Base
•
Increased Disposable Income
•
More Business Tax Revenues
“Why Local Governments Should Make Housing Part of Their Economic Development
Plans”, Jenn Steinfeld, National League of Cities, January 16, 2024

Comprehensive Housing Study

Housing Assessment Process
• Data Collection & Analysis
• Stakeholder Interviews & Public
Engagement
• Housing Gap Analysis
• Housing Needs Assessment
• Policy & Regulatory Review
• Strategy Development

Commuting
Flow

Apartment
Market
Average rent increased by
27% in 2021

Resale home prices increased by 63%
between 2022 and 2019.
New homes prices increased by 51%
between 2022 and 2020.
Chandler Home Price History

Chandler Housing Gap

Renter Gap
38% of renter households
earn more than $100,000

A household earning
the City median
income can afford a
$366,000 home with a
10% down payment.

Low & Moderate-Income Households earning less than $50,000 per year.
Workforce Households:
•
Market-rate renter housing to address the tight market for renters earning between $50,000
and $75,000 (affordable rent $1,125 to $1,725).
•
Homeownership opportunities directed at workforce households earning between $75,000 to
$100,000.
Targeted Housing Strategy

Tools for
Affordable
Housing
Development

Infrastructure and Land Use Planning

Infrastructure and Land Use Planning
2008 General Plan
• Historically Land Use Planning
lead Infrastructure Planning
• Plan the Land Use, then Plan
the Infrastructure
• Potential Colorado River cuts
not eminent
• Abundance of Reclaimed Water
supply
• Water Allocation Policy
2016 General Plan
• Moving closer to Build-
Out
• Reclaimed Water
supply becoming a
more valuable asset
• Urban Residential
Density / Infill Area
• Update to Water
Allocation Policy

Infrastructure and Land Use Planning
2026 General Plan Update
• Existing and Future Infrastructure
capacities will influence update
• On-Project vs. Off-Project Land
differences
• Colorado River cuts eminent
• Infill and Re-Development can’t always
pay for off-site improvements – i.e.:
install larger wastewater pipe 2-3 miles
away
• Anticipate future CIP projects to
accommodate Infill and Re-Development

Downtown Region Area Plan

Downtown Region Area
Plan Update (DRAP)
  
•
Guide future development within the region that aligns with
the community
•
Create a vision for the future built environment
•
Primary goals:
o
Adaptive reuse
o
Mixed-uses
o
Alley activation
o
Downtown gateways
o
Character area guidelines
o
Commerce routes
DRAP is consistent with recommendations from AzTAP and the
Washington Street Alignment Study.

•
Area:
o
Ray Rd to 202 & McQueen to Alma School Rd
o
5 unique districts
•
Replace & combine existing area plans:
o
Chandler Redevelopment Element (blue)
o
South AZ Ave Corridor Area Plan (yellow)
•
Expand area from prior plans to add “gateways”:
o
San Marcos District
o
Arizona Ave north of Chandler Blvd
o
Chandler Blvd east of Arizona Ave
o
AZ Ave from 202 north to Pecos Rd
Downtown Region Area
Plan Update (DRAP)

• Housing Land Uses
o
       Neighborhood Residential
o
       Mixed Use:                                           commercial /
office / residential *
o
       High Density Residential
• Key Benefits:
o
Support development of more housing
o
Allow redevelopment & adaptive reuse
o
Greater flexibility & creativity
* Approvals will consider design, water & sewer demand,
traffic & parking impact & neighborhood compatibility
DRAP Future Land Use
Map

LO
W
LOW
LOW
ME
D
MED
C/RET
C/RET
HIGH
HIGH
BIZ/
IND
LO
W
LO
W
LO
W
LO
W
1995 & 2006 Housing Land Uses
RAY RD
CHANDLER BLVD
FRYE RD
PECOS RD
MCQUEEN RD
2006
1995
2006
• 1995 Redevelopment Element
o        Medium &         High
            Density Residential
o         Low-Density Residential
o         Commercial / Residential
• 2006 SAZACAP (downtown core)
o         Medium &         High Density
Residential
o         Low Density Residential
o         Mixed uses (High Density Residential
/ Commercial / Office)
Largely, development under these
plans did not occur as anticipated

•
HB 2720 - Accessory Dwelling Units (ADU)
o 2 ADUs allowed on single family lots by right
o A 3rd ADU allowed on 1+ acre lots if rented as ‘affordable’
o Effective Dec 9, 2024
•
HB 2721 – Middle Housing
o Duplexes, triplexes, fourplexes & townhomes allowed by right on single-
family lots within 1 mile of central business district
o Chandler will apply this to a larger area than mandated
o Effective Jan 1, 2025
•
HB 1529 – Preapproved Design
o Requires standard preapproved housing designs
o Includes single-family homes, duplexes, triplexes & ADUs
o Effective July 1, 2026 & Jan 1, 2027
LOW
COM/
RET
Upcoming State Mandates Related to Housing

Zoning changes to support DRAP housing:
o
More areas zoned for housing
o
ADUs allowed by right
o
Middle housing types allowed by right
o
Pre-approved plans to expedite approvals
A Housing ‘Infusion’
LIVE WORK
DUPLEX
FOURPLEX
TRIPLEX
TOWNHOMES
ADU

Washington Street Area Vision

•
Smaller lot development
•
Adaptive Reuse
•
Neighborhood uses
•
Use of alleys
Development to the South
South AZ Corridor Study –
Ø High & medium density
residential development.
Ø Assemblage of small parcels.
Ø Revision of neighborhood streets
to facilitate traffic for new
growth.

2023 Washington Street Alignment – Lokahi
Research 3 options for the re-
alignment of Washington Street
Community Input
•
100% consensus opening to Pecos Rd
•
Allow for neighborhood traffic circulation
•
Right only lane on Fairview Avenue
•
Traffic calming
•
Minimize on-street parking from
businesses on Arizona Ave

Washington Street Alignment - Stakeholder
Meetings Feedback
Stakeholder Meetings
•
November 2021 – Overall Neighborhood Meeting –
Kickoff
•
January 2023 – Southside Village Reunion at Harris Park
•
August 2025 – Washington Street Alignment Update
ULI AZ TAP
•
April 2022  – ULI AZ Tap Meeting Stakeholder Meeting
(Harris Park)
•
May 2022 – Panel Day
•
Individual Stakeholder interviews chosen by
neighborhood
Over 72 residents attending the
various meetings with community leaders assisting with
communication on all meetings
Washington Street Meeting
•
August 2023  - Meeting with Southside Village Stakeholder Meeting
•
November 2023 –Washington Street Kick Off Meeting (Community
Input Meeting Mt. Olive with Southside Village Stakeholder Meeting
)
•
December 2023 – Salvation Army Stakeholder Meeting
•
March 2024 – Southside Village Stakeholder Meeting
•
January 2024 – Light and Life Church Stakeholder Meeting
•
June 2024 – Salvation Army Leadership Board Meeting
•
August 2024 –Southside Village Stakeholder Meeting
Downtown Region Area
•
August 2024 – Multiple meetings throughout the month

Preferred Option

19
20
21
22
23
24
30 31 32 33
34
27 28
29
40
41
42
35
36
37
38
39
Arizona Ave.
.
25
26
43

Small Development Housing
Product Opportunities

“Building Small brilliantly
captures all the moving parts of
the development process that
need to be coordinated,
changed and re-tooled to turn
loose the entrepreneurial spirit
necessary for great communities
to grow.“
Tom Murphy, former three term Mayor of

© Jim Heid, 2015

© Jim Heid, 2015

As of 2022, 19% of all housing units
produced in CA is an ADU
https://cayimby.org/reports/california-adu-reform-a-retrospective

Housing Prototypes Assuming 50’ x 150’ Lot Size
Single Family Home
R8.5)
Two Single Family Homes
(MF2)
Single Family w/ ADU/JADU
Two Stacked Duplex (MF2)
Two Rowhomes + 2
ADU
Casita Court
4 Micro
Homes

As-of-Right +HB2829
10
Detached Duplex
2
Single Family
32
Single Family w/ ADU
44 UNITS

Current
Holdings
Current Holdings
16 Detached Duplex / Live-Work
36 Row Homes
45 Garden-Style Courtyard
97 UNITS

Closing the Gap for MMH
GIVENS
(out of your control)
LEVERS
(things you can influence)
Construction Costs
Land Cost
Development Requirements
A/E Services
Permitting Speed/Certainty
Interest Rates
Financing Costs
Developer Fees
Impact Fees

Ultimately good development is
about Managing Risk.
To the extent Chandler can
partner with Developers to
reduce entitlement and financial
risk the better it will attract the
kind of development it wants.

Why Chandler?
Why Not Chandler?
‘Plug and’ Play Infrastructure
Surprise Offsite Costs
Accessible, Collaborative Staff
Siloed Departments
City Led Community Engagement
Go It Alone Neighbor Battles
Clear, Transparent Fees
Hidden Costs and Accruing Fees
Streamlined Permit Requirements
Long Confusing Approval Process
Financial Tools to Support Delivery
No Financial Support
Why Chandler?

•
A complete solution
•
Prime the pump with infrastructure
•
Be ʻopen for businessʻ
•
Thought partner with Small Developers
•
Share the risk for shared gain
Key Recommendations

How This Approach Reduces
Gentrification Risk
•
Gradual Change: Incremental development allows
neighborhoods to evolve slowly, preventing sudden
demographic shifts
•
Affordable Options: Smaller projects typically create
more diverse price points, maintaining housing
accessibility
•
Local Ownership: Small-scale development often
involves local developers or existing residents who
understand community needs
•
Economic Integration: Mixed-income housing prevents
the displacement of existing residents
•
Community Voice: Smaller projects are more responsive
to resident input and neighborhood planning
•
Capturing & Preserving Uniqueness:
o
Architectural Harmony: Small infill projects can complement
existing building styles and scale
o
Local Character: Preserves walkability, street life, safety, and
neighborhood gathering spaces
o
Cultural Continuity: Supports and incubates local businesses
and community institutions that define neighborhood identity
o
Historic Preservation: Adaptive reuse of existing structures
maintains neighborhood heritage

Three Potential Delivery Models
Public-Private Partnerships
City-owned land and vacant lots
developed through public-private
partnerships or community land
trusts
Purpose: Maintain affordability
through Income Qualifications,
Deed Restriction, or Community
Land Trust
Potential Products: Duplex, triplex,
and cottage court on vacant lots
along Morales and Washington
Streets
Small Developers
Local entrepreneurs and small
-scale builders creating infill
housing and mixed-use
projects
Purpose: Attract development
that is a compliment to the
neighborhood
Potential Products: Duplex,
triplex, cottage court and live-
work spaces
Existing Residents
Current residents and their
families adding units,
renovating, or developing
accessory dwelling units (ADUs)
Purpose: Encourage existing
residents to invest in their
properties
Potential Products: Small single
unit to be used for rental income
or building on vacant land,
microbusinesses

Next Steps

Next Steps – Policy Actions
Council Adoption of Downtown Region Area Plan – Scheduled for September 2025
Completion of Comprehensive Housing Study – October 2025
Completion of General Plan Update - February 2026 (City Council); August 2026
(voter ratification)
Implementation of HB 2447 (Objective Design Standards) and HB 2721 (Middle
Housing) by December 2025

Next Steps - Strategies
Evaluate Community Land Trust Formation
Identify RFP Elements for City Properties
Receiving Capacity Analysis (General Plan)
Public Housing Authority – Continued Redevelopment Planning
Downtown Development Summit
Annual Code Amendments(e.g. Zoning, Engineering, Pre-Approved Plans)
Continue  neighborhoods communication and outreach
Develop Building Models/Design Prototypes
Research Alternate  Products/Materials
Continue  Discussions with Salvation Army on Winn School Site
Utility Needs Assessment

Questions?