TUCSON, AZ - A plan to turn a number of vacant lots in South Tucson into 30 affordable homes for low-income families has stalled over concerns about the project's cost. About a year ago, Community Housing Corp, a wholly owned subsidiary of Cope Community Services Inc., a non-profit service agency, had pitched the plan to the South Tucson City Council. The idea was to improve the 1.2-square-mile city's housing supply while making homeownership possible for low-income families. But that vision will have to wait. "I would have to call it on hold for now," said Pat Benchik, Cope's president. "I wouldn't say it's off, but I wouldn't say we are active right now."
The homes were going to cost about $120,000 each, and Cope had secured about $600,000 in start-up funds through the Federal Home Loan Bank of San Francisco. But the cost of the homes was based on the idea that Cope could buy lots in the range of $25,000 to $30,000. When its staff began talking to property owners, though, it became clear that the property owners wanted more money than Cope was willing to offer. Benchik said he thought this was because of previous publicity and awareness about the project, as well as the presence of other, similar housing projects in South Tucson. "When the word got out that there were all of these potential buyers, people raised the prices for their properties," Benchik said.
Whatever the case may be, the lack of progress is a blow to a larger plan in South Tucson to improve the housing supply and increase homeownership. The "Pueblo Within a City" is disproportionately poor and has far more renters than homeowners, according to U.S. Census Bureau data. South Tucson City Manager Enrique Serna said that when Cope first presented the project, it "sounded really promising, given the source of funds that they had and what they thought they were going to be able to accomplish."
Without it, Serna said, the city will mostly focus on a similar project that the Primavera Foundation is pursuing. That project aims to either rehabilitate older houses or, if the cost is too great, replace those older homes with new, high-quality manufactured homes. The goal is to either improve or replace 10 to 13 houses a year over the next five years. "That's pretty significant," Serna said. "Most of the houses that are being replaced are pretty distressed. I've been in a number of houses where you can see the sky, block homes, extension cords all over the place, and there is a little old lady living there."
The city also is developing ordinances similar to the city of Tucson's that will target slumlords. Mayor Jennifer Eckstrom said she was disappointed to hear Cope's project was on hold and that she would like to schedule a meeting with Benchik to see if anything could be worked out. But she also said that considering the current economic climate, she wondered how much of a demand there would be for new homes designated for low-income families. "We need to get together with Pat and see what's going on," Eckstrom said. "It's really hard right now to get any kind of housing done.
"This is something we want to do, but people may not want to be buying houses right now, even if it is affordable housing," she said. Even though the project has stalled and the economy is slumping, Eckstrom said that improving South Tucson's housing will continue to be a priority. With the city's proximity to Downtown Tucson, old adobe houses and array of popular restaurants, there is plenty of potential for gentrification. "Gentrification is always going to be an issue," she said. "Things come in waves, so you never know. Right now we are at a low, and maybe in a couple months, things will start to pick up."
Source: AZstarNet.com