A federal grant may be used to improve Tempe’s low-income housing as part of the city’s Community Development Department budget, which could be approved May 10, according to a Tempe report.
The U.S. Department of Housing and Urban Development awards the Community Development Block Grant to address the needs of low-income housing in cities across America, HUD spokesman William Shaw said.
“This is one response to address the needs of low-income monitored residents of communities,” Shaw said.
This year’s plan details how the grant will be used in the city, Tempe Principal Planner Larry Schmalz said.
The city is also receiving more than $312,000 in funding from Maricopa County’s HOME program, according to the proposed budget.
The grant, which will primarily renovate Tempe’s blighted homes, is expected to contribute more than $1.3 million for the program’s 2012-2013 fiscal budget, Schmalz said.
Roughly 30 percent of the grant is going toward the redevelopment or demolition of slum properties and relocate families in those properties.
“A lot of times various homes in Tempe are in need of great repair,” Schmalz said.
According to the proposed budget, about 35 percent of the grant is going toward affordable housing, which includes acquiring vacant land and rehabilitating existing housing units.
The city will use 95 percent of the HOME program funds on a proposed, though controversial, multifamily rental community at Gracie’s Thrift Store.
If Gracie’s redevelopment is not approved, the city will use the funds on first-time homebuyer assistance programs, such as Section 8 and Community Assistance Mortgage.
According to the budget proposal, a public hearing was held on Nov. 17 for Tempe residents to weigh in on housing issues around the city. Another hearing will take place on April 26 for final community input on the proposed budget.
Schmalz said many citizens have “expressed desire for these types of activities to be done in the city.”
Following the final public hearing, the budget will need to be approved at the city’s formal meeting on May 10 and then by HUD, Schmalz said.
The money will start going into the redevelopment of properties as early as July 1, Schmalz said, but no specific part of the community has been chosen yet.
The Apache Boulevard Redevelopment Area, a city program to revitalize housing on Apache Boulevard, typically receives assistance from HUD and HOME fund, said Phil Amorosi, APA committee chair.
He said funding from these groups has been very helpful during the recession because banks have become very miserly when it comes to home development loans.
He also said he would like to see more housing for specific groups such as the Apache ASL Trails apartment for deaf senior citizens.
“It’s a good thing to get projects going again,” Amorosi said.
Reach the reporter at sraymund@asu.edu
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