Sunday, June 27, 2010

Phoenix will buy 206-unit complex for low-income housing property

by Michael Clancy The Arizona Republic Jun. 26, 2010 07:08 AM

After several years of failed efforts to remake the property, Summit Apartments soon will become the property of Phoenix's Housing Department, which owns and manages low-income housing throughout the city.

The City Council was asked this week to allow the department to buy the property at Windrose Drive and Paradise Village Parkway West, across from Paradise Valley Mall.

Housing Director Kim Dorney said the property is owned by the U.S. Department of Housing and Urban Development, which assumed ownership when a previous owner, Community Services of Arizona, defaulted on HUD-guaranteed loans. A subsequent owner tried to persuade HUD to pay down debt on the 206-unit complex but failed.

HUD will sell the property to Phoenix for $1.

"At $1, I am extremely confident we can rehabilitate the property," Dorney said.

The department asked the council to set aside $4 million in Neighborhood Stabilization Program funds and other sources to buy and rehabilitate the property.

The department will manage the property.

The city owns approximately 3,500 units of public and other affordable housing and manages more than 5,200 housing-choice vouchers. These programs provide homes to over 25,000 Phoenix residents. The department provides services and referrals to residents, and financing to other organizations to create additional affordable housing.

Dorney said Summit Apartments should attract retail workers in the area who can make use of the nearby amenities - a transit center, park and schools.

Phoenix will buy 206-unit complex for low-income housing property

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