AMA
Big hearts, bigger impact
42 | September-October 2019
AMA’s charity efforts having meaningful effect in community By STEVE BURKS
W
hen the Arizona Multihousing Association team turns its focus in one direction, the impact can be tremendous. For 15 years, the AMA has put its focus on raising money for various charitable groups that serve at risk individuals, families and children in Arizona. The group has raised more than $1 million during those years and that money has gone on to truly impact the lives of many in the community. “This is totally a ‘boots on the ground’ campaign,” said AMA board member Mark Schilling, Executive Vice President and Partner at MEB Management Services. “We do have a membership that can pull together and have an impact in the community and help a lot of people.” The AMA charity work began in 2004 when the board of directors launched Big Hearts for Little Hands. The early efforts were focused on helping organizations that aligned with the AMA’s interest in stable family housing. Several members of the board during that time were active supporters of UMOM New Day Center and that organization was one of the first in Phoenix that Big Hearts donated funds to. In Tucson, Big Hearts raised funds for New Beginnings for Women & Children, which is now Our Family Services. YEARS OF FUNDRAISING LEADS TO FORMATION OF AMCF In 2011, after several years of successful fundraising, the AMA decided to form a nonprofit organization to support the efforts of the Big Hearts Committee and the Arizona Multihousing Charitable Foundation (AMCF) was born.
The fundraising campaigns involve not just members, but the hundreds of thousands of residents at AMA member communities. One example of the grass-roots fundraising that the AMCF Big Hearts sponsors is the Dollar-aDoor initiative, which is quite simple, but effective. It began like many other fundraising efforts, with a can or a jar in the community offices at AMA member communities throughout Phoenix and Tucson. As residents would pass through the office, they’d drop a little money in the jar and it would add up fast. “There’s something like 270,000 rental units in our member properties, so that’s touching a quarter-million people,” Schilling said. “If you get just one dollar from every person, that’d be a whole lot of money.” Since those simple beginnings, the campaign has become more about bringing the multifamily residents together with fun, social gatherings. Some communities will host ice cream socials and solicit donations for AMCF, or movie nights and sell popcorn and other snacks, with the proceeds going to charity. “Some communities have gotten creative,” said Lauren Romero, the AMA Tucson area association executive. “We’ve seen community garage sales, raffles for gift baskets and rent discounts. These fundraising activities go on year-round in our AMA communities.” The Phoenix AMCF hosts a yearly Bowl-a-Thon which raises more than $35,000 and is one of the more enjoyable events for AMA members. Other events in Phoenix include the Walk the Walk to End Homelessness event in September,
Mark Schilling
Nicole Wray
the Autism Speaks Walk in October and a raffle for a 2006 Hummer H2. Members also generate money with restaurant nights and selling parking spots at the AMA offices in the Roosevelt District on the very popular and wellattended First Fridays. Tucson AMCF recently held its first Bowl-a-Thon event, raising more than $16,000. Other fundraising events include participation in the El Tour de Tucson, one of the largest cycling events in the nation, with more than 9,000 riders. AMA members participating in the ride generate money by getting jersey sponsors, with those funds going to AMCF. They also do a car raffle through Jim Click Millions for Tucson program, a raffle for a vacation in a Rocky Point condo and the Tucson AMCF is sponsoring a Rainbow Run family fun race. “In 2018, the Tucson AMCF grossed more than $56,000,” Romero said. “That’s one of the things about this group that is really unique. They network for a great cause and they have events and fundraisers and it’s about bringing them together. They compete to see who can raise the most money, 43
AMA but when they all come together, it’s all about camaraderie and that strengthens the industry.” ARIZONA CHARITIES BENEFIT GREATLY Both the Phoenix and Tucson AMCF support the Julie Hurst and Steve Peters Education Fund, which is a scholarship fund for those in, or from, the multifamily industry. The AMCF in Phoenix also continues to provide support to the UMOM New Day Center. More than $600,000 has been raised for UMOM since 2004. Through the joint efforts of AMCF and AMA member companies, more than $487,000 has been donated to Autism Speaks and the Southwest Autism Research and Resource Center. In Tucson, Our Family Services remains a recipient of AMCF funds, as does Tucson Homeless Connect. “AMCF is a key component to the charitable work and dedication that the multifamily industry in Arizona has for the betterment of the community,” said Nicole Wray, Managing Director, Real Estate for Greystar. “AMA members contribute time, money and numerous resources that are essential to making a difference in the everyday lives of thousands of people to include children, veterans and the homeless.” Schilling said he saw first-hand the impact that the AMCF support can have for the community when he went to the UMOM New Day Center. “I’ve been to UMOM and the work they do is nothing short of spectacular,” said Schilling. “I’ve seen women in difficult situations get back on their feet and back in the workforce. They are putting their lives on a good path and UMOM played a key role in that.” This year, the AMCF support of the UMOM New Day Center has helped the group to build an affordable housing project at 2011 W. Morten Ave. in Phoenix. The 54-unit 19West apartments opened in March and feature underground and surface parking, two- and three-bedroom
UMOM: Support from AMCF helped the UMOM New Day Center build its fourth apartment community, 19West Apartments. 44 | September-October 2019
apartments available at reduced rent to individuals and families with demonstrated need. Each unit has a full-sized washer and dryer, large kitchen and spacious bedrooms. UMOM built the four-story community to help put a dent into the growing affordable housing issue that the city is facing. That community joins three other affordable housing communities owned by UMOM; Legacy Crossing, Parsons Village and Sunland. Wray and Greystar are active in
both AMCF work, as well as Greystar’s own charitable initiatives, which include generating $109,000 in 2019 to support Camp Hope, a foundation that serves veterans with PTSD. Greystar is also sponsoring a walk/ run to benefit Saint Jude’s as part of their charitable initiatives. Greystar’s work is just one example of the efforts AMA members put forth to support not just the AMCF, but their own charitable work. Other examples include CREST Cares, which
AMA CHARITY EVENTS: AMA members take part in fundraising efforts like the Bowla-Thon, top, and First Fridays.
autism and their families through advocacy and support; increasing understanding and acceptance of autism spectrum disorder; and advancing research into causes and better interventions for autism spectrum disorder and related conditions. Autism Speaks enhances lives today and is accelerating a spectrum of solutions for tomorrow. www.autismspeaks.org AMCF TUCSON PROVIDES SUPPORT TO: OUR FAMILY SERVICES Our Family Services provides shelter and support to homeless children, youth and families through transitional housing, counseling and case management. They help build stronger communities, promote skill building and provide services for elders and adults with disabilities live safely & with dignity in their homes. They are also licensed as a behavioral health care institution by the Arizona Department of Health Service and help provide information and referrals. www.ourfamilyservices.org
raises funds for several groups like Sister Jose Women’s Center in Tucson and Crisis Nursery; MEB Gives, which works with groups like St. Vincent de Paul, Phoenix and Sunshine Rescue Mission in Flagstaff; CoStar Group has charitable initiatives nationwide; and Alliance Cares sponsors groups like New Pathways for Youth, Toys for Tots and The Boys and Girls Club. Those initiatives are just a sampling of charitable work by AMA member companies and communities in Arizona and nationwide.
in Phoenix has changed throughout the decades, and UMOM has risen to the challenge of providing food, clothing, and shelter to those in need since its inception. UMOM provides families facing homelessness with safe shelter, housing and support services so they can reach their greatest potential. UMOM’s mission is to prevent and end homelessness with innovative strategies and housing solutions that meet the unique needs of each family and individual. www. umom.org
AMCF PHOENIX PROVIDES SUPPORT TO: UMOM NEW DAY CENTERS Since 1964, UMOM new day centers has been dedicated to helping homeless families. The face of homelessness
AUTISM SPEAKS Autism Speaks is dedicated to promoting solutions, across the spectrum and throughout the lifespan, for the needs of individuals with
46 | September-October 2019
TUCSON HOMELESS CONNECT The mission of Tucson Homeless Connect is to provide a single location where local agencies, government, businesses, medical providers and the faith community collaborate to help homeless persons with basic needs, referrals and advocacy. www. tucsonhomelessconnect.org BOTH GROUPS SUPPORT: JULIE HURST AND STEVE PETERS EDUCATION FUND In memory of Julie Hurst, a Senior Vice President of Riverstone Residential, and Steve Peters, a Senior Portfolio Director with Shelton-Cook Real Estate Services. Both Julie and Steve served on the Arizona Multihousing Association Board of Directors, were very influential in the industry and were education advocates. The fund provides college scholarships to AMA members and their dependents attending Arizona colleges and universities full or part time.
AMA
with AMA Board Chair John Carlson
J
ohn Carlson, president of MarkTaylor Residential, is 2019 AMA Board Chair. He guides a board that is 50 members strong in an industry that has seen tremendous growth in Arizona, particularly in the Valley. He has been with MarkTaylor — one of the largest apartment developers and property managers in the Western U.S. — since 2002. Q: Describe your experience with AMA and the value that you’ve received from being involved in the organization? A: Next year marks the 53rd year of the Arizona Multihousing Association (AMA) taking a leadership role in shaping the success and progress of our industry in Arizona. As I reflect on our long history and countless organizational accomplishments, I cannot help but draw inspiration from the unyielding dedication and hard work it took to achieve them. Being involved in the AMA has given me the opportunity to broaden my knowledge of the multifamily industry, understand the political landscape that impacts our business and build relationships with trusted partners in our state. This experience has provided tremendous value as I translate these learnings into my own organization and leverage the knowledge gained to better Arizona’s multifamily landscape as a whole. Q: What are the biggest challenges facing the multifamily housing industry in Arizona? A: I would say the two most
48 | September-October 2019
significant challenges facing the multihousing industry today are rent control and the negative perception of property owners as it relates to evictions. Although rent control is not in place in Arizona today, it has gained momentum in unexpected states throughout the country over the past few years. Rent regulation policies are government-enforced price control measures limiting the rents that property owners may charge in market rate rental housing that are harmful to residents and housing providers. It is the position of the AMA and National Apartment Association (NAA) that rent control distorts the housing market by acting as a deterrent and disincentive to develop rental housing, and expedites the deterioration of existing housing stock. While done under the guise of preserving affordable housing, the policy hurts the very community it purports to help by limiting accessibility and affordability. If government and private industry are unable to adequately meet the affordable and workforce housing needs, rent control could become a major issue in the near future. The other major challenge facing the industry is negative perception coupled with negative reporting as it relates to evictions. This perception is not just a statewide issue but a national issue as well. As property owners, we make a concerted effort to work with each one of our residents when issues occur. As an industry, we go to great lengths to create safe and secure places for our residents to call home. Significant time and resources are spent on building relationships and fostering long-time residents. If you were able to spend some time with management teams onsite or even talk to the majority of residents, the lifestyle and overall experience are often very positive in nature. Q: What role do you feel AMA plays in finding solutions to those challenges facing the industry? A: The AMA’s mission is to unite multifamily housing leaders in one trusted voice for Arizona’s rental community. This one trusted voice for
the industry has and will continue to play a major role in ensuring apartment owners and operators have the ability to run their businesses and continue to provide much needed housing for residents throughout the state. If public policy such as rent control starts to negatively affect the apartment industry, the negative economic impact to businesses, cities and the state as a whole would be substantial. According to the Elliot Pollack Apartment Market Analysis, the apartment industry generates $3.8 billion in annual economic output each year. For perspective, the total annual economic output activity for construction and operations would be equal to hosting 10 Super Bowls each year in Arizona. Additionally, the operations of the estimated 575,000 units throughout Arizona generates an estimated $561.8 million each year in government revenue. Moving forward, it’s imperative that AMA continues to protect the industry by building upon its position of strength with more than 270,000 units in membership, strong engagement, operational discipline and forward-thinking organizational leadership. The AMA is also very active in finding solutions to the lack of affordable housing. Q: What advice would you give a young person just starting out in the industry or considering a career in the industry? A: Multifamily is a darling within the real estate space. It is an asset class that has drawn in continual investment dollars, provides ample opportunity for growth and offers its customers the ultimate expression of their identity — a home. Being a part of this industry means taking on numerous challenges; no day will be the same. The right person to join our industry is prepared and excited to take on new challenges, gets out of their comfort zone consistently, handles problems quickly and focuses on providing premier service to their residents and owners. There is great opportunity for advancement for young people entering the industry.
49
ARIZONA MULTIHOUSING ASSOCIATION
Affordable housing crunch Industry, residents facing an issue of less supply, more demand By ALYSSA TUFTS
T
here’s no feeling like home. The sense of belonging, having a place to relax, making memories and enjoying the company of friends and family. However, for some Arizonans, that dream of being a homeowner or having a place to call home is a dream out of reach. The reason? A lack of housing, more specifically, affordable housing. The reason? A lack of housing, more specifically, affordable housing. According to the NAA/ NMHC study, between now and 2030, Arizona will need to build 16,855 new apartment homes each year to accommodate household growth and losses to the stock. However, producing enough new apartments to meet demand may require unique development approaches, more incentives and fewer restrictions. Brian Swanton, president and CEO of Gorman & Company, said the crux of the affordable housing issue comes
50 | September-October 2019
down to supply and demand. “It’s not a new problem and it’s a problem that’s growing and finally impacting so many households that it’s become more of a crisis and it’s being paid attention to as an issue,” Swanton said. “There’s massive levels of demand due to a lack of household income growth, while at the same time, housing costs are skyrocketing." Gorman & Company has about 1,300 affordable rental housing units in Arizona alone and have about 500 households on average on their waiting lists to get into their properties, Swanton said. “In Arizona we’re doing what we’ve done since 1986, we’re using limited federal resources to address the affordable housing problem and it’s inadequate,” Swanton said. To afford a one-bedroom apartment, a minimum wage worker would have to work 57 hours a week. Some progress has been made, as the Arizona
Mike Shore
Brian Swanton
Legislature appropriated $15 million to Arizona’s Housing Trust Fund this year, which is one of the largest investments towards housing and homelessness the state has seen in almost a decade. The legislature also considered a State Low Income Housing Tax Credit program that is similar to the federal program. The AMA supports the creation of a fiscally responsible state LIHTC program and has long
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AMA K E Y F A C T S
204,134 OR
23%
Renter households that are extremely low income
$24,600
Maximum income for 4-person extremely low income household (state level)
-153,331 Shortage of rental homes affordable and available for extremely low income renters
$38,390
Annual household income needed to afford a two-bedroom rental home at HUD's Fair Market Rent.
78%
Percent of extremely low income renter households with severe cost burden
(Source: National Low Income Housing Coalition )
supported the full restoration of the housing trust fund. There are many obstacles multifamily developers face when building apartments at all price points. As much as 32 percent of multifamily development costs are attributable to complying with local, state and federal regulations, in a quarter of the cases that number can reach as high as 42 percent according to the NMHC / NAHB June 2018 study. In addition to escalating costs, land use regulations, financial resources and lack of community or political support make it almost impossible to build affordable housing. HOM Inc., which operates Permanent Supportive Housing (PSH), Rapid ReHousing (RRH) and other permanent housing programs for vulnerable individuals and families experiencing homelessness and housing instability, helps craft solutions to the affordable housing crisis. “We look and act a lot like a private
housing authority for families and individuals who are experiencing homelessness,” said Mike Shore, president and CEO of HOM Inc. “We do that through partnerships with nonprofit homeless services organizations, mental health and integrated health care organizations who are serving those populations.” The affordable housing shortage is an increasingly complex problem that affects many populations in Arizona. While Arizona and Phoenix, in particular, are still considered very affordable in comparison to other metropolitan areas, an estimated 32 percent of households pay more than 30 percent of their income for housing expenses, according to the Arizona Apartment Analysis, a report conducted by Elliott D. Pollack & Company for the AMA. According to the National LowIncome Housing Coalition, Arizona has just 25 affordable and available rental units for every 100 extremely
low-income rental households. The national number is 37 for every 100. Only two states have a greater shortage, Nevada and California. With efforts from organizations and companies who champion more funding for affordable housing projects, passing legislation that makes a positive impact and providing programs that help lower income residents get into a home, progress is being made steadily and surely. The Pollack report suggests there is a strong need for future supply to address a lack of affordable housing, a portion of which will be met by aging apartment communities that have historically lowered rents over time. “The supply that is being planned and built appears to be primarily in high end of the market,” said Courtney LeVinus, President and CEO of the AMA. “The report illuminates what we’ve been saying – ‘this is where the supply/demand imbalance is most noticeable in Arizona.’”
BARRIERS AND MISCONCEPTIONS
the ability to have that affordable workforce rental housing, is affecting those people most vulnerable in our community,” said Gloria Muñoz, Executive Director of the Housing Gloria Munoz Authority of Maricopa County and an AMA Board Member. “It impacts homelessness; it’s a visual thing in the community. As a united force – and I keep going back to working together – it’s so true that if we work on the same issues and work towards the same outcomes, that is being united.”
A recent National Apartment Association survey ranked metro areas by relative ease of developing new apartments. Director of Industry, Research and Analysis, Paula Munger, presented details of barriers that impede the construction of more affordable housing projects across the country. “Across the board, the No. 1 concern and No. 1 factor was NIMBY-ism; not in my backyard,” Munger said. “Next were construction cost, shortage of labor and land cost. Everyone can agree they want their city to grow and progress. You need jobs, and these people need a place to live. “A lot of reasons people don’t want apartment development are misguided. These include crowding and traffic. But
52 | September-October 2019
these are people, teachers of their children and servers in the local restaurants, that need affordable housing,” Munger said. There are other obstacles multifamily developers face when building apartments at all price points. As much as 32 percent of multifamily development costs are attributable to complying with local, state and federal regulations. In a quarter of the cases, that number can reach up to 42 percent, according to an NMHC/NAHB June 2018 study. In addition to escalating costs, land use regulations, financial resources and lack of community or political support make it almost impossible to build affordable housing. “The affordability crisis we are in right now,
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AMA
Arizona’s apartment industry is an economic engine
E
ach year, thousands of jobs are created throughout the state in the construction industry from new apartment development. The estimated $1.1 billion in annual construction activity generates approximately 14,400 jobs with wages of $746.6 million and a total economic impact of $2 billion. Apartment construction also pays an estimated $182.5 million in impact fees and taxes to the state, counties and local governments. Real estate consulting firm Elliott D. Pollack & Company reviewed the most recent year’s apartment activity within Arizona and found that the industry continues to consistently produce significant benefits for the state and its counties and local governments in the form of jobs, wages, economic output and tax revenue. As of 2018, there are approximately 575,000 apartment units in Arizona.
56 | September-October 2019
The Arizona apartment industry is estimated to employ more than 12,000 people throughout the state. The operations of the communities create a ripple effect that generate an estimated 9,800 indirect and induced jobs. The apartment industry generates an annual impact of 21,900 jobs, $695.9 million in wages and $3.8 billion in annual economic output each year. Apartment operations also generate significant revenues for governments including property taxes, retail sales taxes on supply purchases, residential rental taxes, utility taxes and secondary revenues from employees. The state, counties and local governments collect an estimated $561.8 million each year from the Arizona apartment industry operations. The Elliott D. Pollack & Company report also addressed future needs in Arizona for apartment housing, including barriers and solutions to
development and affordability issues. The analysis found that demand for multifamily housing in Arizona is higher now than any other period of history. A significant percentage of millennials (the largest age cohort in the U.S.) are reaching their peak rental years and, because they are delaying marriage, will prefer apartments for a longer period of time. In addition, the retirement home cycle also appears extremely strong. The pool of baby boomers selling houses and renting is also likely to increase. Arizona renters will also demand a variety of rental housing ranging from low-income all the way up to luxury class. Overall, there is currently strong demand in all sectors, but affordability is becoming a persistent issue in terms of supply. There is strong demand for reasonably priced housing in all forms (for-sale housing, single family rentals,
MULTIHOUSING MUSCLE The total annual economic impact within Arizona’s apartment industry is the equivalent to the state playing host to more than 10 Super Bowls each year. Numbers tell the story:
$3.8
$699
730
Thousand
Thousand
131
235.9
$3.8 billion in economic output annually
$699 million in wages annually
730,000 rental home residents
131,000 jobs supported
235,963 new apartment homes needed by 2030
Billion
Million
Thousand
Sources: Elliott D. Pollack & Company; weareapartments.org
$1
Million
Arizona Multihousing Association has raised more than $1 million to benefit at-risk families and children in Arizona
818 North 1st Street | Phoenix, AZ 85004 602-296-6200 | AZMULTIHOUSING.ORG 57
AMA and apartment communities) that are close to employment centers and transportation routes that do not cost the household more than 30 percent of their monthly income to own or rent. There is a strong need for future supply to address this need going forward, a portion of which will be met by aging apartment communities that have historically lowered rents over time. Based on the median family income, a family in Arizona can afford a home priced up to $269,500. By comparison, for new homes, the median new home price in Metro Phoenix is reported to be just over $303,000 and the median resale price is $253,000. Thus, families at the median income are largely priced out of the new home market. For families who earn less than the median family income, home ownership becomes even less attainable. Housing affordability has become a top priority of many governments across the state. Many communities are well aware of the persistent and growing need for affordable housing solutions for their residents. Major factors that contribute to affordability, such as land prices and the cost of labor and construction materials, are outside the control of governments. In these areas, innovations in housing development are sorely needed. Within the control of government, there are policies that can be adopted that would help create more opportunities for affordable and workforce housing. There are meaningful solutions that governments can participate in to help eliminate barriers to affordable housing development. This includes a review of regulations that could be reduced or minimized if they impede the development of affordable housing, adjusting land use restrictions, parking requirements, or speeding up the permitting process. All could help to reduce overall construction costs and provide a better outlook for lowering required rents. There are also many ways to help encourage affordable housing, including density bonuses, expedited approvals, below market pricing of underutilized government land, and various forms of tax incentives made available to developers who include affordable housing. Overall, apartments continue to be a viable solution for affordable housing at each level of income in the state. Story courtesy of Elliott Pollack & Company. 58 | September-October 2019
Arizona Apartment Industry Impact Summary (2018 Dollars) Economic Impact Jobs (direct, indirect, induced) Wages ($ mil) Economic Output ($ mil)
Construction 14,374
Operations 21,907
$746.6
$695.97
$2,030.6
$3,758.6
Fiscal Impact State of Arizona
$75.6
$56.0
County Governments
$28.0
$162.5
$78.9
$343.2
$182.5
$561.8
Local Governments TOTAL
1/ The total may not equal the sum of the impacts due to rounding. (Source: AMA; Elliott Pollack & Co.; IMPLAN)
Renter Households by Income - 2017 State of Arizona Income $1,000,000 $900,000 $800,000
$150,000+
20%
$100,000 to $150,000 $75,000 to $100,000
$700,000 $50,000 to $75,000
$600,000 $500,000
Luxury Housing Segment
48% $25,000 to $50,000
$400,000
Workforce Housing Segment
$300,000 $200,000 $100,000
32%
< $25,000
Affordable Housing Segment
$0 (Source: U.S. Census 2017 American Community Survey 1-year Estimates)
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AMA
TACKLING HOUSING
AMA passes bill to preserve existing affordable housing opportunities for Arizona families By ALYSSA TUFTS
M
ore people are moving to Arizona each year, and the influx of new residents is contributing to a shortage of affordable housing, and is creating a larger problem that impacts the real estate industry including developers, landlords, tenants and residents. In the 2019 legislative session, the Arizona Multihousing Association (AMA) supported a key measure aimed at protecting existing affordable housing programs. Courtney LeVinus, president and CEO of the Arizona Multihousing Association, said the shortage of affordable housing in Arizona comes
60 | September-October 2019
down to inventory. “We don’t have enough rental units available at workforce and affordable housing price points. It’s really that simple. The lack of available rental units is exacerbated due to significant population growth, demographic changes with the younger generation waiting longer to form households,” LeVinus said. “Baby Boomers are becoming renters by choice. We need to preserve as much of the existing affordable housing and workforce housing stock that we can.” While creating new housing options is critical for Arizona, maintaining the current supply of affordable housing programs in the state was the focus of the AMA in 2019.
HB2358, which was introduced by Rep. Ben Toma (R), protects existing affordable housing voucher programs after an unfortunate court decision threatened to dismantle many housing-related programs. A Maricopa County Superior Court ruling in 2018 determined that when a rental owner accepts a Section 8 voucher on behalf of the resident, then the rental owner is prohibited from evicting the resident for any prior breach of the rental agreement. The ruling was based on the court’s plain reading of the “partial payment: statute in the Arizona Residential Landlord Tenant Act (ARLTA). If the housing provider was in the process of evicting a resident and then
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AMA the Section 8 payment arrived via direct deposit the rental owner would have to stop that eviction process. “Under the court ruling, a resident could assault another resident on the property, and the rental owner could do nothing in terms of removing the person who committed the violent act if they received a Section 8 voucher, LeVinus said. “This ruling was bad for the rental owner from a risk management perspective, but it was also terrible for other residents on the property who had to potentially live near an unruly resident.” Because of the Court’s ruling, housing providers were contemplating leaving Section 8 or other government assisted housing programs because AEROTERRA: One of the newest affordable housing communities to accept the Housing Choice Voucher in Phoenix was completed in 2017.
62 | September-October 2019
the Court essentially increased the risk for owners to participate in such programs. Had the Arizona Legislature not corrected this Court decision and housing providers determined that accepting Section 8 vouchers created too much of a financial risk, then the supply of affordable housing would have plummeted. HB2358 passed out of the Legislature with bipartisan support in both the House and the Senate. HB2358 amends the ARLTA to clearly exclude certain types of housing assistance payments, including Section 8 payments, made by government agencies for the purposes of the state law dealing with “partial payments” of rent. It became effective on August 27. For the 2020 legislative session, LeVinus said the AMA will continue to focus and advocate for more affordable housing and reduce any barriers to develop workforce and affordable housing going forward. "We're really trying to educate
Courtney LeVinus
Rep. Ben Toma
elected officials and the general public on why apartments and different types of housing are so critical," said LeVinus. "And really advocate for more apartments and more multifamily because we're seeing such a huge need. "We want to put Arizona in a position where we can continue to accommodate this amazing growth that we’ve had, and housing is critical for economic development and the employers of Arizona need quality housing for their employees.”
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