Phoenix is partnering with two local school districts to transform unused land into 264 affordable housing units, helping address the city’s 59,000-unit shortage

In a significant move to address Phoenix’s affordable housing crisis, two local school districts are selling underutilized land that will be transformed into much-needed residential units. The initiative, which will create 264 new affordable housing units, represents an innovative partnership between educational institutions and city government to tackle one of the metropolitan area’s most pressing challenges.

School district lands to be converted into affordable housing

The Phoenix City Council has approved agreements to facilitate land purchases from two school districts: 4.56 acres from Isaac School District for $3.1 million and 5.54 acres from Alhambra School District for $2.3 million. The city will serve as an intermediary in these transactions, ensuring the land will be dedicated to affordable housing development through a Land Use Restrictive Agreement (LURA) that mandates affordable housing use for at least 40 years.

Housing Director Titus Mathew highlighted the critical nature of this initiative in a press release, stating, “A recent housing needs assessment determined that Phoenix is short about 59,000 affordable and available units for low- and very-low income households at or below 50% of the area median income.” He added that “these public-private partnerships secure land to help bridge that gap, and to create more housing options for residents at all income levels and family sizes.”

Development details and affordability standards

Two residential projects will emerge from these land acquisitions:

• Wild Rose Flats (Isaac School District land): 72 affordable units
• Salamanca Square (Alhambra School District land): 192 affordable units

These developments will adhere to the U.S. Department of Housing and Urban Development’s affordability guidelines, which specify that housing costs should not exceed 30% of a household’s gross income. The units will be specifically targeted at households earning 80% or less of the area median income.

Construction on both projects is anticipated to begin in 2026. The transaction structure complies with Arizona law, which permits school districts to sell property to government entities for public purposes, provided such sales don’t interfere with normal school operations. The City of Phoenix will incur no financial impact from these transactions.

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