Tucson & Pima County Secure $7 Million HUD Grant to Boost Affordable Housing

The city of Tucson, in collaboration with Pima County, has secured a $7 million grant from the U.S. Department of Housing and Urban Development (HUD) aimed at addressing the pressing challenges of affordable housing. This announcement was made on Tuesday.

Among 18 recipients nationwide, Tucson and Pima County are part of HUD’s Pathways to Removing Obstacles to Housing program. This initiative targets municipalities grappling with a significant lack of affordable housing, supporting their efforts to dismantle institutional and structural barriers.

“HUD’s PRO Housing program directly addresses the regulatory, procedural, and financial barriers to preserving and producing affordable housing that cities and regions have long articulated,” stated Ann Chanecka, Housing and Community Development director for Tucson. She emphasized that this funding will accelerate affordable housing production in the region.

Challenges have persisted, with home prices in Tucson and Pima County soaring by 68 percent since 2019, while rental rates have risen by 48 percent. In contrast, average household incomes have increased by only 22 percent during the same period.

The city initiated a Housing Affordability Strategy in 2021, focusing on zoning changes to promote affordable housing development. However, officials acknowledge that ongoing efforts are crucial, particularly in lower-income areas.

The HUD grant application outlines plans including zoning reforms, the introduction of tiny homes, enhanced support for small-scale developers, and improving resources for the city and county’s affordable housing teams. Additionally, the funding aims to stimulate community backing for affordable housing initiatives.

Koren Manning, the interim director of Planning and Development Services, noted that the grant would bolster existing zoning reforms and continue to remove barriers to expand housing options for all residents.

Beyond this grant, Tucson and Pima County officials have secured over $100 million in federal, state, and private funds for housing and shelter initiatives since 2022. This includes an $11.5 million HUD grant received last month to refurbish mobile homes.

“Tucson is an example of how cities are innovating to create housing affordability,” said Mayor Regina Romero, reflecting the city’s commitment to tackling this critical issue.