(1) Short Description:
Tempe proposes a “creative” affordable housing program, allowing developers to bypass public hearings for faster approvals in exchange for including affordable units.
(2) Read Time:
2 minutes, 15 seconds
(3) Main Article:
A Creative Blueprint for Affordable Housing in Tempe
The city of Tempe, Arizona, is pioneering a potentially game-changing strategy to tackle its affordable housing shortage. The proposed affordable housing bonus program offers developers a streamlined path: agree to set aside a percentage of units as rent-restricted for low- to moderate-income households and, in return, receive automatic zoning waivers for greater density, increased height, or reduced parking requirements. Crucially, qualifying projects would skip the traditional, often lengthy, public hearing process, accelerating construction timelines significantly. This “carrot over stick” approach aims to make building affordable units financially viable for developers while rapidly expanding the city’s housing stock.
For developers and investors in the finance niche, this program represents a compelling incentive for developers. By removing bureaucratic hurdles and offering predictable, by-right approvals, Tempe lowers the soft costs and regulatory risk associated with projects containing affordable components. This can improve project pro formas and attract capital looking for socially responsible investments with clearer paths to completion. The program essentially creates a fast-track development approval lane, turning what is often a community benefit into a direct financial and procedural advantage.
The success of this model will hinge on its design details—specifically, the required percentage of affordable units and the income levels they target. If calibrated correctly, it could serve as a replicable blueprint for other cities facing similar crises. The move signals a shift toward market-driven solutions in public policy, using zoning flexibility as a currency to purchase community benefits directly. For Tempe, the balance will be ensuring that the accelerated process still results in quality, integrated communities that meet genuine affordability needs.
(4) Short Summary:
Tempe’s innovative affordable housing bonus program uses zoning incentives to fast-track development approvals, bypassing public hearings for projects that include affordable units. This market-driven strategy aims to expand housing stock quickly by making affordable construction more attractive to developers, serving as a potential model for other cities facing housing shortages.
