The City of Tucson, through its Housing and Community Development Department, is soliciting proposals for affordable rental housing projects under the FY 2026 HOME Investment Partnerships Program (HUD PY 2024). The funding aims to increase affordable rental housing for low-income households in Tucson and Pima County by supporting the acquisition, rehabilitation, or construction of affordable housing units. Approximately $2,047,681 is available, including $472,213 reserved for certified Community Housing Development Organizations (CHDOs).

Eligible applicants include qualified nonprofit and for-profit developers, including CHDOs, capable of demonstrating experience in constructing, rehabilitating, or managing affordable rental housing. Projects must meet specific HUD and HOME program requirements, including serving households with incomes at or below 80% of Area Median Income (AMI), with at least 90% of units reserved for those at or below 60% AMI. Proposals should demonstrate alignment with the City’s Housing Affordability Strategy for Tucson (HAST), People, Communities, and Homes Investment Plan (P-CHIP), and HUD Consolidated Plan goals. Applications are due by December 22, 2024, via the Neighborly online portal.

The minimum HOME investment is $1,000 per unit, with funding awards ranging up to $1,000,000 for non-LIHTC or 4% LIHTC projects and $500,000 for 9% LIHTC projects. Eligible uses include development hard costs, property acquisition, soft costs, and relocation expenses. HOME funds are provided as gap financing through low-interest loans. Projects must comply with HUD property standards, tenant protections, and rent limitations, with affordability periods of at least 20 years. The City emphasizes the use of green and sustainable building practices and proximity to community assets like transit, schools, and healthcare.

Applicants must submit comprehensive proposals, including a completed application, budget workbook, and supporting documentation such as market studies, financial audits, and site control proof. A project impact presentation to the Commission on Equitable Housing and Development is required in January 2025. Evaluation criteria include alignment with City priorities, feasibility, project readiness, market demand, and leverage of additional funds. Proposals undergo a threshold review, with final awards subject to City Council approval in March 2025.

Applicants are strongly encouraged to attend the virtual pre-proposal conference on November 18, 2024, to clarify requirements. Questions can be submitted until December 13, 2024, with responses posted weekly on the P-CHIP website. For more details, contact HCDgrants@tucsonaz.gov or visit the application portal.