By Mike Sunnucks | Rose Law Group Reporter
The city of Phoenix is accepting bids for the development of new affordable rental housing through new effort that features city-backed low-interest financing.
The city has issued a Request for Proposals aimed at Community Housing Development Organizations. Bids are due to the city in February.
The Phoenix City Council approved the $6 million housing effort in November which includes low interest and potentially forgivable notes for nonprofits and businesses who want to develop affordable apartments as well as new housing for homeless and special needs residents.
The city can potentially provide gap financing to help affordable apartments and housing for the homeless and special needs populations get built.
Phoenix had some of the biggest increases in apartment rents in the U.S. in 2019. For example, Apartments rents were up 8.2 percent in metro Phoenix in third quarter compared to a year ago. They increased 7.6 percent in Scottsdale, according to commercial brokerage firm CBRE.
Like other Western and Sun Belt cities, Phoenix has also seen a rise in homelessness in recent years.