Phoenix Councilman Michael Nowakowski has requested staff to explore a policy for future GPLET requests that includes a community benefit such as affordable and workforce housing. A policy such as this could encourage developers of residential housing projects in downtown seeking General Property Lease Excise Tax (GPLET) status to designate a percentage of units for affordable or workforce housing.
“The Derby project the City Council approved yesterday is a model for how future residential development can maintain the diversity and energy that is driving our downtown’s growth,” Councilman Nowakowski said. “The need for affordable housing will only get bigger and with this proposal, luxury and workforce housing would expand and thrive together.”
The Derby Roosevelt Row multi-family residential development proposal that the Phoenix City Council approved yesterday included a stipulation that five percent of the 211-unit development will be available at 70 percent of the going rental rate.
“Any future development proposal that includes a request for GPLET status should include a component that provides a benefit to the community such as affordability and workforce housing similar to the Derby project so that everyone has the opportunity to live and play in our great city,” the councilman added.
“Affordable housing in Downtown Phoenix is in high demand – especially around many of the great infill development sites going up in-and-around downtown. Demand is great from local prospects, students, outsiders and for workforce housing that wants to be close to their jobs; and all deserve a place to live,” said Germán Reyes, Executive Vice President at Chicanos Por La Causa. “We fully support the integration of mixed income housing in large for-profit projects that can create the financing mechanisms within the projects to create a viable, inclusive mixed-income environment. We are fully in support of developers including affordable housing in their plans.”
In making the proposal, the councilman cited other statistics* that underscore the need for affordability and workforce housing including:
· An estimated 100,000 renter households citywide earn less than 80 percent of median income and are in need of housing assistance, a renter number expected to rise by 7.5 percent over the next five years.
· About 26,000 applicants are on waiting lists for federal rental assistance.