Tempe, AZ Affordable Housing Strategy

City of Tempe, Arizona

Like many growing cities, the City of Tempe, Arizona faces increasing challenges related to affordable housing. Over 25,000 households in Tempe, representing nearly 37 percent of all households, pay at least 30 percent of their income on housing each month. As part of a larger effort to support transit in the City’s Urban Core Master Plan Area, the City commissioned BAE to prepare an Affordable Housing Strategy (AHS) to analyze innovative housing types and programs that could address local affordability issues.

BAE’s study began with an analysis of local demographic and market conditions, identifying the magnitude of local affordability challenges, as well as key housing issues that could be addressed with implementation of a Citywide strategy. Next, working closely with City staff and a broad spectrum of local stakeholders, BAE helped prioritize and establish the City’s goals and objectives for improving the availability of quality housing for residents of different income levels.

Recognizing that there is no “one size fits all” approach to addressing affordability, the AHS examines over twenty possible strategies to expand local housing options and preserve affordability within Tempe, including voluntary development bonus programs, targeted fee waivers and abatements, and affordable housing impact statements. While some strategies require public subsidy, other strategies are focused on market-based solutions that do not require the outlay of public funds.

The City’s Affordable Housing Strategy (AHS) was formally adopted by City Council in July 2019, and will guide future decision-making on the production and preservation of affordable housing across the City.