Avalon Villas Combines Affordable Housing and Services for Families in a Gentrifying Phoenix Neighborhood

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Avalon Villas Combines Affordable Housing and Services for Families in a Gentrifying Phoenix Neighborhood

 

Avalon Villas, a 94-unit affordable housing community designed for families, opened in Phoenix, Arizona, in 2021. The development’s numerous amenities and support services include a Head Start classroom. This income-restricted development plays a vital role in a high-opportunity but high-cost neighborhood. In 2023, the project received a Vanguard Award from the National Affordable Housing Management Association. The Vanguard Award recognizes affordable multifamily housing developments that demonstrate good design and resourceful funding.

An Infill Project in South Phoenix

The once-blighted South Phoenix area in the city of Phoenix has undergone significant revitalization in recent years, but the new development and expansion of services have ushered in gentrification and rising housing costs. The city identified South Phoenix as an area in particular need of more low- to moderate-income housing. In 2019, Atlantic Development & Investments acquired a vacant property in South Phoenix to develop Avalon Villas, an affordable housing community with integrated support services. “The priorities set by the Arizona Department of Housing QAP [Qualified Allocation Plan] and City of Phoenix Consolidated Plan kind of aligned with this location,” said Jessica Raymond, executive vice president of Atlantic Developments & Investments. In addition, the parcel was in Phoenix’s Infill Development District, where the city actively encourages adaptive reuse and redevelopment by waiving or reducing some development requirements.

The development team encountered a series of hurdles. In addition to delays and escalating costs associated with the COVID-19 pandemic, a significant archeological finding in 2020 pushed back the start of construction by 9 months and added $1 million to the project cost.

Despite these challenges, the developer was able to complete Avalon Villas after obtaining a low-interest HUD Section 223(f) loan. Raymond explained that the Section 223(f) permanent financing program, more often used for market-rate properties, was key to making this project feasible. The approximately $27 million project also received low-income housing tax credit equity and HOME Investment Partnerships funds from the city of Phoenix (table 1). “The Arizona Department of Housing and the city of Phoenix Housing Department were really progressive, and they worked with us on using a new financing tool that had never been used before, with 9 percent tax credits and HOME [Investment Partnerships] funds in Arizona,” Raymond said. Furthermore, all 94 units qualified for Section 45L federal energy-efficiency tax credits. These credits are available for buildings participating in the ENERGY STAR® Multifamily New Construction program. The development funds its support services through the state’s Medicaid program and grants from Mercy Care.

Affordable Housing for Families

Avalon Villas features 94 family apartments in 7 adjoining 2-story buildings, including 16 four-bedroom townhomes, 26 three-bedroom townhomes, and 52-two-bedroom units. The dwellings range from approximately 900 to 1,350 square feet. Several of the units are configured for residents with special needs, including those with physical disabilities or sensory impairments. Most of the units’ front doors open directly to the sidewalk, fostering the feel of a close-knit neighborhood. The community’s family-friendly amenities include a dog park, a barbeque area, play structures, and a splash pad.

Approximately one-third of Avalon Villas’ units serve households earning up to 60 percent of the area median income (AMI), and another third serve those earning up to 50 percent of AMI, with the remainder serving households earning up to 40 percent of AMI. Nearly half of the development’s residents consist of families with housing choice vouchers, who receive priority for these units. Emergency housing vouchers support some of the units, which serve residents who had been living in shelters or on the streets. Atlantic works with local organizations to identify residents with special needs who are living in temporary or crisis housing.

The project’s sustainable and climate-friendly features earned Avalon Villas Leadership in Energy and Environmental Design (LEED) Gold certification. These features include low-emissions, double-pane windows; a high-efficiency heating, ventilation, and air conditioning system; and low-flow toilets. In addition, the lights and appliances are ENERGY STAR® certified.

Located on Broadway Road in South Phoenix, the development is close to grocery stores, restaurants, and a park. Residents are also within walking distance of Federally Qualified Health Centers and schools. City buses stop at the property at least every 30 minutes.

Serving Families

Avalon Villas offers numerous onsite services. Atlantic worked with the city of Phoenix and the Greater Phoenix Urban League to incorporate a Head Start classroom for preschool-aged children. The class serves the entire community, although residents of Avalon Villas receive priority placement, eliminating the need for residents to coordinate transportation for childcare. Another service partner, Community Bridges, supports residents with addiction treatment and behavioral health care. With support from Medicaid, Community Bridges employs two onsite peer support specialists who themselves have histories of substance abuse or mental health disorders. The navigators build trusting relationships with residents and provide mental health services, substance abuse treatment, life-skills support, and education and community services in their community center. They also help residents access transportation and navigate other services. Approximately one-quarter of the residents use these services, although they are accessible to everyone who lives at Avalon Villas.

Atlantic and Community Bridges partner with other local nonprofits to serve residents’ children throughout the year. St. Mary’s Food Bank provides children with food when school is out of session, and the Phoenix Mercury basketball team holds a summer basketball camp for children from Avalon Villas as well as two other Atlantic properties, allowing them to play with and learn from professional basketball players. In 2023, the Arizona Cardinals Foundation and Led a Better Way Foundation hosted an onsite Christmas party with presents for all the children.

Moving Forward

Raymond believes that the model of incorporating Head Start into housing developments can and should be replicated, because the program provides a safe and convenient learning environment for children. “Honestly I would do it at every opportunity that I could,” Raymond said. “It's such a wonderful amenity, and the wider community benefits too.” Atlantic is currently developing another housing project featuring a Head Start classroom in a neighboring county. Atlantic also used a Section 223(f) loan to fund another affordable Phoenix housing development, The Reserve at Thunderbird, which opened in 2024.