An apartment developer presented a plan to City Council Tuesday, outlining its intentions of developing affordable multifamily housing structures in Maricopa.
Representatives from the Indianapolis-based Englewood Group discussed with members of council their two-fold approach to multi-family housing and how it may be able to help Maricopa overcome the rental gap in the city.
According to their presentation, 76 percent of renters in Maricopa are cost burdened, earning only 30-50 percent of the Area Median Income. Also, according to the presentation, 33 percent of Maricopa residents earn $50,000 or less per year.
Englewood Group representative Brian Pozen said 97 percent of houses in Maricopa are single-family homes. Based on current market analysis, rental properties in the city have an average rent of $1,376 per month with nothing available for less than $1,000.
This, they said, is where they can help.
Englewood’s approach, Pozen said, would use both market-rate and low-income apartments to fill this need.
Market-rate units would range in cost from $800 for a single bedroom, up to $1,300 for a two bedroom, he said.
Three-bedroom apartments were not discussed.
Low-income units would range from around $700 for a studio to $900 for a two bedroom, he said. To achieve that goal, the company would utilize the federal Low Income Housing Tax Credit.
To qualify for the credit, the complex would have to abide by the qualified Allocation Plan which prescribes that the unit would need to be, among other things, smoke-free, built and maintained efficiently, preserve historical aspects of the region and target low income tenants.
Englewood representative Julia Surak said, this is not “Section 8 housing.”
“You can use a Section 8 voucher, but you don’t need it to live there,” Surak said.
Building the low-income units would take more time, Pozen added. However, he said, Englewood has already signed a “letter of intent” for a property in Maricopa where they hope to construct market-rate units.
Once that property is rezoned, he said, Englewood can begin moving forward with permitting and subsequent construction almost immediately.
To apply for the tax credit, the land must already be zoned for multifamily thus drawing that process out on a longer timeline which they hope would conclude in spring or summer of 2019.
The company also expressed an interest in building a senior living complex. Each complex would contain on average 20 units per acre – 90-110 units per complex.