SAFFORD — There are a number of hurdles to developing affordable housing in the Gila Valley, more than just lowering asking prices.
The Graham Economic Partnership brought community members together with experts in the field of housing for a panel on affordable housing in Graham County on Wednesday morning at the General Services building.
Craig Bloomfield, owner of Velocity Builders, said lot availability and pricing are major factors in the high cost of homes locally, as well as the local tradesmen not being accustomed to working in volume.
Meanwhile, Johnny Poulsen, manager for Providence Homes, said the local trades charge significantly more than those in the Maricopa County area, making it cheaper to hire in the Phoenix market even with paying for travel and housing in Graham County. He also said that land costs in the Gila Valley are too high and eat away at any profitability from new home construction.
Due to those factors, he said that projects with greater density on the lot, such as townhomes, may be the best to develop at this time. He said Providence currently has a 165-unit project under development just south of Safford High School.
– David Bell Photo/Gila Valley Central
William Osborne, the Community Development Programs manager for Southeastern Arizona Governments Organization, said that, thanks to a grant from United Way of Graham and Greenlee Counties, his organization has been commissioned to conduct a housing feasibility study, and they have hired Grow America to complete the study, which should take four to six months to complete.
Financing also came up, with Poulsen saying most lenders like to see a population of at least 60,000 before investing in significant housing development.
Sheldon Bartel, with Grow America, said the definition of affordable housing is housing expenses — rent/mortgage, insurance and utilities — that take no more than 30 percent of the area’s median income.
He added that, after hearing input from the panel and the audience, it appears there are multiple “needs” within the Gila Valley, including single-family housing, market-rate housing, work-force housing, affordable housing and continuing-care housing.
“You need to prioritize and decide what that housing looks like and how it comes through the pipeline; where you want to put your resources first,” Bartel said.
– David Bell Photo/Gila Valley Central
Also on the panel were Matt Hazard, project manager of Global Supply Chain Operations for Freeport-McMoRan, and Realtor Cindy Jensen with ReLion Realty.
Hazard said Freeport is taking a holding position on housing starts, while waiting for completion of the Housing Feasibility Study. However, Freeport is offering workers housing stipends and a commuter program from Safford to Morenci.
