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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☒ Safe & Prosperous |
☐ Motion |
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Community Development |
☐ Active & Appealing |
☐ Resolution |
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☐ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☒ Connected & Engaged |
☒ Ordinance - Adoption |
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Neighborhood & Economic Development |
☐ Unique & Creative |
☐ Public Hearing |
TITLE:
title
Approve the Housing Authority of the City of Yuma (HACY) Acquisition, Development and Operation of an Affordable Housing Apartment Complex, Tentatively known as Vista Apartments
end
SUMMARY RECOMMENDATION:
Summary Recommendation
Authorize the Housing Authority of the City of Yuma (HACY) to: (1) undertake acquisition and ownership of the former Vista Alternative High School site (Property), subject to an affordable housing covenant; (2) form a project-based 501(c)(3) non-profit entity (HACY 501(c)(3) Non-Profit) which, together with the Arizona Housing Development Corporation (AHDC) will form a managing member entity which will then form an ownership entity for the apartments (Ownership Entity); (3) enter into an option for a long-term ground lease for the Property between HACY as the lessor and Ownership Entity as the lessee and should the Ownership Entity exercise the option, to enter into a long term ground lease; and (4) enter into a Development Consulting Agreement with Gorman & Company through the Ownership Entity, to facilitate development of the Vista Apartments as a proposed three phase, 200-unit, low-income housing tax credit (LIHTC) project (Project). (Community Development /Neighborhood and Economic Development) (Cynthia Blot)
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STRATEGIC OUTCOME:
HACY development and operation of a 200-unit, affordable housing apartment complex supports City Council’s strategic outcomes of Connected and Engaged and Safe and Prosperous promoting community stability through reduction of housing insecurity and displacement, supporting workforce retention, and lowering the burden of housing cost for federally qualifying families.
REPORT:
HACY acts as agent for the City to construct, maintain, operate and manage housing projects of the City. Pursuant to Yuma City Code § 150-002, HACY must seek additional authority from City Council in order to acquire, own and dispose of real property, as well as to create any ownership interest in a business entity. Approval of the proposed ordinance will grant HACY project specific authority to acquire the former Vista Alternative High School site (Property), create a 501(c)(3) entity that will then form a management entity with AHDC. The management entity will then form an Ownership Entity, which will lease the Property from HACY for the development of the 200-unit, low-income housing tax credit project (Project), tentatively known as the Vista Apartments. The Project is intended to provide modern, safe, and energy-efficient affordable rental housing for low-income residents in the City of Yuma.
As outlined in the proposed ordinance, HACY will acquire a 7.64-acre site (the former Vista Alternative High School, located at 221 E. 26th Place), subject to an affordable housing restrictive covenant. Similar to the 56-unit Mesa Heights Apartments project, HACY will seek to secure low-income housing tax credit approval from the Arizona Department of Housing, then take the necessary actions to facilitate the development of the first phase (approximately 69 units) of the affordable housing Project consistent with the City’s housing and community development objectives.
In order to develop the Property, HACY will enter into a long-term ground lease with the newly formed Ownership Entity in which the management entity will serve as the managing member. The management entity will be 51% owned by HACY’s 501(c)(3) and 49% owned by AHDC, a non-profit HACY affiliate whose purpose is to promote the general social welfare of the Yuma community including development of housing for low- and moderate-income families pursuant to federal regulations.
Gorman & Company will consult on the management, financing and development of the Vista apartments Project. This structure will ensure HACY’s long-term ownership of the Property as well as involvement and oversight in the operation of the Project, at the same time leveraging AHDC’s and Gorman & Company’s development and financing expertise in these types of projects.
Approval of the ordinance will authorize HACY to create the necessary entity structures and enter into development, ownership, and related agreements that will move the Project forward in accordance with all applicable laws, local ordinances, and adopted housing policies
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING ACCOUNT/FUND #/CIP: |
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TOTAL |
$ 0.00 |
- |
FISCAL IMPACT STATEMENT:
NONE
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
NONE
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☒ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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Jennifer Reichelt for John D. Simonton |
01/28/2026 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
01/27/2026 |