Tucson's Stone and Speedway Project Wins $2.5M in Housing Tax Credits

The Arizona Department of Housing has awarded $2.5 million in Low-Income Housing Tax Credits to the Stone and Speedway Phase I development in Tucson. The funding will support the construction of 44 affordable housing units and 12 market-rate units at the southwest corner of Stone Avenue and Speedway Boulevard.

The project marks the first phase of a two-phase development that will ultimately provide 119 residential units. It is the fifth City of Tucson-associated project within the Thrive in the 05 Redevelopment Target Area to receive LIHTC funding in the last five years. The development is part of the Choice Neighborhoods Implementation Housing Strategy, which is supported by a $50 million HUD grant awarded in 2023.

The development will consist of three multi-story residential buildings. The building fronting North Stone Avenue will rise five stories, while the building along West Speedway Boulevard will be four stories. A third building along North 9th Avenue will be two stories to provide a scale compatible with the adjacent Dunbar Spring neighborhood. The site is located on a city-owned vacant parcel across from Pima Community College's Downtown Campus and along Tucson's planned Bus Rapid Transit corridor.

Amenities will include enhanced security features, in-unit washers and dryers, community and mixed-use space, indoor and outdoor bicycle parking, landscaped gathering areas, public art, solar panels, and 95 on-site parking spaces across both phases. The project was designed by the Tucson-based architecture firm Poster Mirto McDonald.

Gorman & Company served as the principal applicant for the LIHTC award. The development is largely financed through the tax credits, which will produce more than $21 million of private funding for the project. The total development cost is estimated at $63 million. The development will be approximately 80 percent affordable housing and 20 percent market-rate housing.

Affordable units will be available to households earning up to 50 percent of the Area Median Income. Construction on Phase I is expected to begin in summer 2027 and be completed in winter 2028. Phase II is anticipated to begin in spring 2028 and be completed in fall 2029.

The development is part of Tucson's broader Housing Affordability Strategy adopted in 2021, which called for affordable housing on city-owned land. El Pueblo Housing Development, a city nonprofit, and Gorman & Company, as the Choice Neighborhoods housing implementation partner, are leading the project.