Providing housing and community
revitalization to benefit the people of
Arizona.
Leading with solutions Arizona Department of Housing
The Arizona Department of Housing works with
a variety of partners from faith- based, non- profit
organizations to local, private developers to assist in
funding private sector solutions to public challenges.
The stories over the next few pages offer some
examples of how these innovative partnerships have
helped working families in Arizona realize their dreams
since the agency was created in 2002.
Everyday Arizonans share a
similar dream...
They want to live in good
quality homes in safe,
vibrant communities.
Finding a home within
reach is the cornerstone
of stable families,
healthy communities, an
expanding economy, and
smart growth.
Homes for working families
Arizona Housing
Finance Authority
2006
Leveraging $ 668.1 million
Wages & salaries $ 439.7 million
12,275 jobs
State & local taxes $ 80.1 million
Housing Trust Fund $ 150.0 million
ADOH by the numbers
since october 2002
Mortgage Revenue Bond Program
201 mortgages for first- time homebuyers
Mortgage Credit Certificates
47 issued
Economic impact/ gross regional product
More than $ 1.3 billion
A
FI
Homes for Arizona's working families benefit everyone.
1/ 07
If a working family is spending no more than 30% of its income on
housing, then where they are liVing is considered within reach. That
family is not having to make a difficult choice between paying for
health insurance, gasoline, or their rent or mortgage. In fact, they're
able to participate fUlly in the economy of the city or town in which
they live.
Think about it.
They buy groceries. They pay taxes. They contribute to their
communities.
An affordable place to live has a ripple effect on the economy of the
city or town in which it's located.
,----- A ripple effect
That's right: the people who
live there.
Working with local
communities to fund
solutions to public
challenges, the agency has
funded the construction
or renovation of roads,
water treatment facilities,
community facilities, and
economic development
activities. All of this is made
possible through Federal
Community Development
Block Grant ( CDBG) funds,
which provide approximately
S13 million annually to
thirteen Arizona counties
( excluding Maricopa and
Pima counties).
GADSDEN PARK
Yuma County
," 11'. 1 · "' .... 1': til\ N-;,.. .• ,0"
HOUSING
1700 W. Washington, Suite 210
Phoenix, AZ 85007
( 602) 771- I000
FAX ( 602) 771- 1002 ~
www. housingaz. com1! J
Flourishing communities F
Who knows best what a particular community needs?
As the only community park within a five- mile radius, the
popular park now serves the residents of Gadsden.
In 1914, three acres of land
were donated to the Town of
Gadsden for public recreation
use. Save for a 1976
expansion and improvement
made possible with a grant from USDA I Rural Development, the land went
undeveloped- and unused.
With money from the CDBG program, the citizens of Gadsden
were able to renovate the area known as Gadsden Park. They
purchased picnic tables and BBQ grills, repaired the bleachers,
installed apre- fabricated restroom facility, put in an extensive
ADA sidewalk, and installed two new drinking fountains and
a playground structure for the children.
L Leading with solutions Creative ideas Innovation
ACH
On March 1S, 2006, that Christmas
promise was kept and the Raels
moved into their first home.
Michael and Erica are very pleased
to know that their children will
be in a stable home environment
for many years to come, going to
the same schools, and building
friendships in the neighborhood.
On Christmas morning, when
both Erica and Michael were
sure the home was going to be
theirs because they had signed a
purchase contract and had been
qualified to receive gap financing
from the Arizona Department of
Housing, Michael and Erica loaded
their family into the car and had
a mini celebration in West Village
Estates. They told their children
that they were standing where
their new home would be and
that they would be moving in the
following spring.
Homes within reach
BOTHANDS, Inc. purchased 13 single- wide
mobife home lars in West Village Estates in
Flagstaffand on them installed modified,
two- srory manu( ocrured homes.
In April 2005, however, Michael
and Erica started working through
the BOTHANDS Homebuyer
Education and Financial Fitness
program. That's when they learned
about West Village Estates and the
two- story manufactured homes
being developed there. They realized that they would qualify for one of
these homes.
Five years ago, Michael and Erica Rael made the hard decision to move
in with Erica's parents so that they could save up money to buy a home
of their own in the community where they had grown up. Unfortunately,
housing prices in Flagstaff began skyrocketing soon afterward, with homes
appreciating 98%. Regardless of
how much they put into savings,
the young couple simply could
not compete with cash offers and
investors in the local housing
market.
H
• Median Home Price
• Median Family Income
2005 2006
A success story
is interested in learning the ins and outs of becoming a homeowner.
In the end, through a combination of the Mortgage Revenue Bond
( MRB) and the Downpayment & Closing Cost Assistance programs,
Rachel Bustos was able to make the dream of owning her first home a
reality. Not only was she able to qualify for a30- year fixed- rate mortgage
at 5.1 S%, but she received 15% downpayment assistance and nearly
53,000 to help cover her closing costs.
" The best thing first- time buyers could do for themselves is attend this
class;' Rachel said. " The class provided me with so much information
about the entire home buying process. It got me ready for the many
responsibilities that come with the joy of owning your own home."
With three bedrooms, two bathrooms, a living room, a full kitchen, and
nearly 1,200 square feet of living space, Rachel is not the only one who
is thrilled to have a new place to call home. Vicente, Rachel's 13 yearold
son, is finally able to have his own room where he can entertain his
friends.
Rachel participated in afree, 8- hour Homebuyers Education Class that is
frequently offered by the Arizona Department of Housing to anyone who
Of course, with the hurdles and challenges that needed to
be overcome, hard work and sacrifice were a significant part of the
equation.
2001 2002 2003 2004
- $ 232,000 $ 244,000
~
5169,000
~ 140,600 5143,900 $ 146,000 $ 156,500 ~
-----$ 54r90C
$ 47,800 549,700 551,900 552,700 553,300 $ 53,300
$ 100,000
$ 50,000
$ 0
2000
$ 250,000
$ 200,000
$ 150,000
$ 300,000
Making the move from renting your home to owning it is a big step
for many of Arizona's working families, particularly in today's housing
market.
Arizona Home Prices and Income
Homes for working families
A community- driven solution to a local problem became a practical
reality and adream come true for many area residents.
Rachel Bustos, a single
mother working at the
Arizona Department of
Corrections in Florence,
finally decided that it
was time to stop renting
and start owning. With
assistance from the
Arizona Department of
Housing's Homes for
Arizonans Initiative, Rachel was able to purchase ahome that had twice
the square footage of her old apartment for only 540 more per month.
Allen Carlson, Executive Director of Newtown Community Development
Corporation came to the Arizona Department of Housing with one such
idea: a development based on the community land trust model- an
innovative approach whereby the new homeowner buys the house,
but the land on which it sits is held in trust for future income- qualified
homebuyers. Separating the value of the home from the value of the
land keeps the cost of housing affordable for future generations.
Growth is happening across the state more quickly than most
communities can plan for it. With that growth comes the need for
innovation, and no where is that need greater or more important
than in the area of housing. Landlocked Tempe is one of those places
where innovation is a must- creative ideas are not just nice, they are
necessary.
Located in the Heritage District of Gilbert, Page Commons has redefined
the concepts of" independent senior living" and " affordability;' especially
when it comes to resident amenities. Seniors can choose between oneand
two- bedroom apartments that feature full kitchens, roomy storage
space, and private balconies.
ousing opportunities for life
All across Arizona, our
population is aging.
Recognizing this
need, the Town of Gilbert identified a piece of land downtown that
was originally intended for industrial use. Town leaders changed the
zoning and then donated the property to Mercy Housing, a not- forprofit
agency that built on that site athree- story, 100- unit senior living
complex known as Page Commons.
The baby- boomers
are retiring, and more
and more seniors are
flocking to Arizona for
a sunny retirement.
Planning for this evergrowing
segment of the
population has become
an immediate necessity.
Further setting this development apart from other senior living centers
is the state- of- the- art community room, the outdoor courtyard with
barbecue grills, and asoon- to- be- completed computer room with highspeed
Internet access.
Green means " GO" in Arizona's
housing market. .. but
Cannot afford to buy or rent.
Can afford to buy or rent.
2005 " State of Housing in Arizona" 2006 " State of Housing in Arizona"
HOURLYWAGES
Hourly 2 Bdnn Hourly HOURLY WAGES ..., oly 2BDRM Hourly
Median
W.. ge .., Im! Wage Wage Apbnnl Wage
NHdlld Monthly Needed to CityfTown County Median Home Needed I Monthly Needed to Police Teacher
CityfTO'IIIn County Home Price' to Buy Renr Rent PrIce' B, Rent" Renl 00,,,
BuUhead eil Moha~ $ 123,000 $ 17.12 $ 673 $ 12.94 Bullhead C" """"" $ 180,260 S 26.15 653 $ 12.56
Casa Grande "''''' $ 140.947 $ 19.62 $ 770 $ 14.81 Casa Grarxle PiI\ 8I $ 175,000 I 25.38 770 $ 14.81
C~ Pinal $ 119,000 $ 16.56 $ 770 $ 14.81 COO" Pinal I 114,000 S 16.54 770 S 14.81
Douglas """' 0. $ 68,333 $ 9.51 $ 577 $ 11.10 ,,, Codise $ 76500 $ 11.10 596 $ 11.46
E Pinal S 80.000 $ 11.13 $ 770 $ 14.81 Eb Pinal $ 119900 S 17.38 770 S 14.81
Flagstaff Coconino $ 252.000 $ 35.07 $ 878 $ 16.88 A I" Coo: looo $ 395000 $ 57.31 907 1 17.44
Florence Pinal 109.450 $ 15.23 770 $ 14.81 Flo""'" Pioal 1 195950 $ 28.44 770 S 14.81
Globe Gila $ 81.200 $ 11.29 $ 667 $ 12.83 Globo Gila 1 126,400 $ 18.35 689 1 13.25
H._ N, $ 85.000 1 11.83 1 570 1 10.96 HoIJrooi< NO' 1 140 750 $ 20.42 569 1 11.33 11.12
Kingman Moha" $ 127,000 $ 17.68 $ 673 $ 12.94 K' m", Moh... 1 170,350 S 24.71 653 1 12.56 19.92
lake Havasu City Moha~ $ ' .... 000 $ 36.74 $ 673 $ 12.94 Lake Havasu """"" 1 269.95< 1 1 39.17 653 1 12.56 19.92
. ogales "'" N' , N '" s. m. C"" 1 172 000 S 24.96 623 1 11.98 23.38 ~ • " Parker laP", S 245000 S 35.56 572 1 11.00 21.68 .,,"" ~ P. Gila S 242,250 S 35.15 689 1 13.25 19.89
• • ."""" . 1 Phoefix Metro- Resale ""'. 1 264,900 S 38." 770 $ 14.81 23.81
hoentx- o. ,"""'" , 1 1 Phoerix Metro - New ""'. I 268,232 S 38.92 770 $ 14.81 23.81
Pinelop- lakeside Navajo S 205,000 $ 28.53 $ 570 $ 10.96 Pnel • Nit" 1 297,000 1 43.10 5691 11.33 17.12
Prescott Yavapai $ 186,000 $ 25.89 $ 696 $ 13.38 P_' yO' $ 34< JOOOI 49.35 719 S 13.83 19.31
Salrord Graham $ 90.000 1 12.53 $ 54' $ 10.46 Safford Graham 1 99 545 I 14.44 562 1 10.81
8M luis Y"", o $ 115.000 1 16.01 1 650 $ 12.50 San Luis y"", 1 163,000 S 23.65 672 1 12.92 19.9
Sedona Yavapai} Yavapai I
Coconino $ 454,500 $ 63.26 $ 696 $ 13.38 Sol"", Coo: looo 1 513000 $ 74.44 1 719 S 13.83 19.31
Shaw Low N. 140,000 $ 19.49 $ 570 $ 10.96 ShowlaN Nit 1 150,000 $ 21. n 1 5691 11.33 17.12
Sierra Vista """' 0. 1 21.42 $ 577 $ 11.10 Sierra Vista Codise $ 165 000 $ 23.94 I 596 $ 11.46 22.75
s " rvilla • $ 13.36 $ 537 $ 10.33 S erville 1 135.000 $ 19.60 1 5\ l41 9.69 15.28
T"""",' Pima 190,000 $ 26.44 $ 673 $ 12.94 Tucson' Pima 1 211502 $ 30.69 I 748 1 14.35 23.11
Winslow N",. 80.000 $ 11.13 $ 570 $ 10.96 w.... N 1 129.000 1 1a. o2 1 569 1 11.33 17.12 1255
Yu"," 124900 S 17.38 $ 6" $ 12.50 y""" Yuma 1 224,900 S 32.63 1 672$ 12.92 19.92
AriZDf1il $ 191,600 $ 26.67 $ 64' $ 12.38 AIilona I 244 000 $ 35.40 1 674 $ 12.96 23.0 13.31
AlloroabiiIyCalculation Assurnpllorls: JO% ol tllCOlll8 G BIlocalod to housing. Forlluylng B house 8dd. iliDnal tiSumpllooslnc: luclad 5% down payment, A/ klfdBblklyCalwlallQn Aswmpliool: 30% ol Income Is alocBted 10 houSlng. FOf buylng a housa add, 1lonaI BSiUmationS tnctlded 5% dClWll paymvnl.
6% 1nlG' 8st IlIlB at JO- ye; n lxad. ~ s allooation ol21' 11o ol ria tllGIltlly payments 10 property taxes, lnsurllI'l( » and Olhaf costs 8UCll as PM!. &. 5% IrMI'fit ralll at J().- y~ fblad. pkis alloca~ onol21% o'lhe monthly plIl' 1J'Hlflls to proparty talles, lnsuranca aoo oIhar costs sLJCtl as PM!.
• Mostllome prieM ... median, but a low allllMlrallEl prices. Some pnces ara lor 2llGS, olhafs alll klr 2004. • MOIIl home prw:; el .... " lIIdIan, bill a lew lIl" e aYef'llll' 8 prIcas. Most prien ... for Apnl2006.
" Apartmanl Rents - HUD: ZOOS FairMarkM Reflts. Rants shown are ! of 2 · bedroom unils. " I\ partmont Rants - HUO 2006 Falr Marli: Bl Ranis. R& nts sIlown alll klr 2- badroom uMS.
" Stale of Housing in Arizona" is an annual publication of the Arizona Department of Housing. Data sources used in compiling this report indude:
Arizona Department of Housing, AriZona Department of Economic Security, U. S. Department of Housing and Urban Development,
Arizona Real Estate Research Center at ASU. and various local real estate associations, and k> cal governments.
Arizona Department of Housing
1700 W. Washington, Suite 210 · Phoenix, AZ 85007
602.771.1000 www. housingaz. com
Green means " GO" in Arizona's
housing market... but
2006 Median Hourly Wage by Occupation*
Cannot afford to buy or rent.
Can afford to buy or rent.
2006 Median Hourly Wage by Occupation* + " Time Tax" Reduction
( I. e. shifting of $ 5,000 annually in transportation costs to housing costs)
I - ~ • HO R WA E HOURLY WAGES. 2.40 PER HOUR 2Ikl< m H_ Median Hou"" 2 Bd"" Hou..,.
Clty( Town County
lMedien Home W... Aplln" t W... P.... T_ .- H~
........ Monthly N..... """'- ToYt 01 All Ho_ Wig. Aptmnt Wlge PoJlce Retail Tala' 01 All .- -.. Ol! k « w...... CIlyfT_ County Monthi}' Tuche' Nu_ F1r. nght.... w_ -- ........ H..... om~, Wor1l. er -- to Buy .... t to Rent ""- to Buy Rent to Rent
..-.. Mohave , '!' l. 1!!!!... 26.15 653 12.56 .........~ ......... S 180.260 S 26.15 S .53 S 12.56 14 ..
c.. aG< ande Pinal , 175,000 25.38 no S 1< 4.81 c.. a G< ande .... , 115000 25.38 no s '. 81 ,4S7
Pinal , 114000 16.54 no ' •. 81 .... 114000 16.54 no s '. 81 '. 87
Oouglao ! Cochlse S 76.500 $ 11.10 S .96 S 11.46 Dougl~ Co< l> M , 76,500 $ 11.10 , ... , 1146
Pinal 119900 17.38 no ' 4.81 PInal $ 119900 17.38 no S '. 81 1481
F ... Coconmo , 395000 57.31 907 11.44 F,.."... C<>< orino S 395.000 S 57.31 S 907 , 17.4.
F""",,," P; nal 195 ... 2844 no ". 81 F""",,," PInal S 195 950 S 28.44 no , ,. 81 1•. 81
Globe GOa , 126 400 18.35 ... 13.25 Globe Gila 126 400 18.35 68. 13.25 15.10
H_ Nav 140 750 20 42 ... 11.33 17 12 H_ ...... , 140,150 S 20.• 2 S ... , 11.33 14.95
Mohave 170350 24.71 , 853 , 12.56 19.92 '" Uoha, e 110350 24.71 653 S 12.56 14.08
Lake HlMIIU Mohave 269950 39.17 653 12.56 1992 Lake Havasu City Uoha, e ie' 26..... S 39.17 S 653 S 12.56 14.08
~. santa Cruz 112 000 24.96 623 S 11.98 23.38 • santa Cruz S 172000 S 24.96 S 623 S 11.98 12.67
P...., laPaz $ 245000 35.56 , '" S 11.00 2168 P8l1Ier La Paz 245000 $ 35,56 '" 11.00 24,26 12.45
P. " Gia 242250 35.15 68. 13.25 19,89 ~ Gil. S 242250 S 35.15 S 68. 13.25 2229 15.10
Ptloenik M$ lro- R8Ule Maricopa 264,900 S 38.44 , 170 $ 14. S1 23.81 Pt10enix Melro- Resalll Mari 264 900 38.44 170 14.81 26.21 16.05
Phoeoil< JoIetro. New Man • 268 232 38.92 170 14,81 23.81 Phoenl~ Melro- N_ Mari""" S 268,232 S 38.92 S 170 ! 14.81 2621 16.05
Pi~ LakMkkt N" - , 297000 43.10 $ ... S 11,33 17.12 ~ ne akeside N" S 297000 43.10 S 58. 11.33 1952 14.95
.....". Yava ; 340 000 49.35 719 13.83 19.31 "'- V. w 340 000 49.35 719 13.83 21,11 1447
Sa""'" G"""", , 99,~ 5 $ 14.44 , 582 , 10. al 5al! o « l Graham S 99,545 $ 14,44 , 582 , 10.81 1356
san L..., Yuma , 163 000 23.65 672 12,92 19.92 SanWa V""" 163 000 23.65 .72 12.92 ' 300t
Sedona VaYaplli/ Cocomno S 513000 74.44 719 , 13.83 19.31 Sedona V • C<>< orino 513000 S 74.44 719 13.83 14.47
ShowL.. Na 150 000 21.77 ... 11.33 17.12 ShowL.. Ho" ie __$ tSO, OOO S 21. n , 589 S _ 11.33 14.95
Sierra Vilta Cochise , 165,000 23." S ... , 11,46 2275 Siem> I/ iala <: oct- 165000 23." ... 11.46 15
135000 19.60 504 9.69 1528 -.... ...,..,.. $ 135..... 0.... 00 $ 1960 , 50< , .... " 39
T..... P; ma ... 1...... l!!.. 502 $ 30.69 , 7" 1435 2311 7..... Pime 5 211 502 53069 ! 7.. 1'. 35 15.5'
W...... Na 128000 18.02 ... 11.33 1712 1255 w...... Ho 129000 18.02 ... 11.33 1495
V""" Vuma , 224... 900.......... 1 32.63 s 672 , 12.92 1992 V""" V""" S 22', 900 5 32.63 S 672 , 12.92 13.004 ....... 244000 354{) ." S 12.98 23.05 133 ....... 2"' 000 3540 6" 12.96 15.71
Affordability Calculation AssumptiOnS: 30% of income Is allocated to housing. For buying a house additional assumptions included
5% down payment. 6% interest rate at 3O- years fixed, plus allocation of 2196 of the monthly payments to property taxes, insurance
and other costs such as Private Mortgage Insurance ( PMI).
=
Arizona Department of Housing
1700 W. Washington, Suite 210' Phoenix, AZ 85007
602.771.1000 www. ho.. slnge. com
• Wages by OcCUpation and Hourly Wage Needed to Rent are county- level numbers, while Median Home Price figures are those
occurring in a specific CityfTown. CityfTown specific wage data is not available. For example, it appears that median wages in
Sedona are sufficient to support median rents. However, CityfTown specific housing costs are much greater in Sedona than
can be supported by median wages of the County.
- 2 Bedroom Apartment Moothly Rent is based on 200S county- level Fair Market Rent ( FMR) numbers provided by
US. Department of Housing and Urban Development ( HUD).
+ Most home prices are median, but a few are average prices. Most home prices are for April, 2006.
This data was taken from the 2006 " St. ale of Housing in Arizan;!, W an annual publication of the Arizona Department of Housing.
Data sources used in compilillg this report include: Arizona Department of Housing, Arizona Department of Ecooomtc Secumy. U. S. Department
of Housing and Urban Development, Arizona Real Estate Research Center at ASU, and various local real estate associations and local governments.
