The Arizona Department of Housing on July 1 confirmed that the Valor on Eighth project will be able to receive nearly $10.6 million in federal low income housing tax credits over 10 years. It was a milestone for the project’s partners: the City of Tempe, Gorman & Company, Inc. and Save the Family Foundation of Arizona.
Located on city-owned land at Rural Road and Eighth Street, just south of University Drive, the 50-unit rental community will include five market rate, live-work units on the ground floor and 45 units primarily designed for veterans and veterans with children. Save the Family will offer comprehensive services to residents who want them, including free on-site before- and after-school programs, a computer lab with training classes, financial literacy lessons for all ages, job training and placement, and other personalized case management services.
The idea for an affordable housing option for veterans was the brainchild of Vice Mayor Corey Woods and Councilmember Robin Arredondo-Savage, who have developed the concept for two years. The City Council in February approved the ability to negotiate exclusively with Gorman & Company; other parts of the project will come to the Council later this year.
For Arredondo-Savage, who is a U.S. Army veteran, the housing project and other aspects of the city’s overall veterans initiative are all about serving those who have served their country. For those who are just beginning their service, Tempe wants to establish connections with them before they leave and communicate that they can return to a community that cares.
“Tempe has really been on the forefront of veterans affairs,” she said. “The Valor on Eighth project will be a key part of our efforts to support veterans and their families. I am excited about the possibilities.”
Woods said the project will fill a vital need in serving veterans and families.
“This is a very unique project and it’s indicative of how Tempe is always looking to lead the way when it comes to innovation,” he said. “I’m very proud to partner with Gorman on yet another great Tempe project.”
The federal tax credits will be supplemented by $318,000 in federal HOME Investment Partnership funds that the City of Tempe will pass through to the project, as well as $750,000 in state housing trust funds and a conventional loan for the rest. The award of the federal tax credits this week represents 75 percent of the needed funding to move the project forward. The other 25 percent of the funding has also been secured.
“We’ve done a lot of research nationally and this is really unique,” said Brian Swanton, who is Arizona Market President with developer Gorman & Company, “There’s certainly no other project of this kind in the state.”
Financing agreements will close within a year, and design and zoning approvals will be pursued concurrently. Construction could begin in mid-2016 and take about one year to complete.
Valor on Eighth is part of a larger initiative to serve Tempe veterans and active military. Woods and Arredondo-Savage have spearheaded a veterans working group that, with a number of community partners, has:
• Established the eighth Veterans Court in Arizona and the second in Maricopa County. Tempe Municipal Court Presiding Judge MaryAnne Majestic brought on Retired Brigadier General and Pro Tem Judge Gregg Maxon to run the Tempe Veterans Court. Since starting in September 2014, it has already helped many military veterans resolve their criminal violations and get help for problems that may be holding them back in civilian life.
• Established a City of Tempe Veterans Commission in October 2014. Volunteers appointed by the City Council will enhance and establish programs, policies and practices for Tempe veterans.
• Launched a webpage (www.tempe.gov/military) and email listserv to provide information and resources for veterans and their families.
• Started a new event called Community Salutes as a celebratory sendoff for new recruits going into the military.
• Teamed up with Rio Salado Community College to designate the East Valley Veterans Education Center as Tempe’s official resource for veterans. Through this collaboration, the City of Tempe added an on-site navigator to help connect veterans and their families to resources, services and programs.