Phoenix, and Arizona, are rapidly gaining in population. New Arizonans — workers, neighbors, friends, and family to many of us — have come to our state for social and economic opportunity. We simply aren’t building homes fast enough to put roofs over their heads.

from Zillow indicates that housing prices across Arizona have risen by 31.9% in the past year, compared to 12.5% from Oct. 2019 through Oct. 2020.

We have a supply and demand problem. Housing construction is not keeping pace with population growth, and the gap between housing supply and demand grows every day. This has caused Arizona’s housing prices to skyrocket, impacting one of Arizona’s distinct competitive advantages: affordable land and affordable housing.

Much of this issue centers around zoning. Phoenix and surrounding areas have a ton of “single-family zoningâ€� — think suburbia — with little “high-density zoningâ€� — think apartments and townhouses. For many years, Arizona thrived as a suburban hub. As time has gone on, and the state has become an increasingly popular destination for emigrants from across the nation and world, the Valley and cities across the state have gotten quite crowded.

This isn’t to say that single-family housing has got to go. It most certainly does not. It is to say that policymakers ought to reconsider the balance of low- and high-density zoning. 

Just take a look at Phoenix’s zoning map (this is just a cross-section, the full map can be found ):

Lots in red are zoned for commercial use. Lots in orange are zoned for high-density housing. All that light yellow is single-family zoning.

Leaders in government should work with community leaders, developers, job creators, and residents to expand high-density zoning and allow builders to fulfill market demand for housing. Right now we’re choking the hose, and it’s raising prices for everyone.

Anti-growth policies that impede housing development include limited multi-family zoning, inclusionary zoning, and rent control.

Inclusionary zoning is a which “requires or incentivizes private developers to designate a certain percentage of the units in a given project as below market rate (BMR)—cheaper than their value on the market, and often less than the price of producing them.� While it sounds good on paper, it ultimately reduces housing supply and raises housing prices.

Rent control, Megan McArdle of the Washington Post, is “[t]he one issue every economist can agree is bad.� Housing is a commodity that is governed by the laws of supply and demand, and price controls in this market do nothing to expand housing access, and actually “reduce… the incentive to supply rental housing.�

Milton Friedman’s is relevant here: “One of the great mistakes is to judge policies and programs by their intentions rather than their results.�

Thankfully, Arizona has a statewide ban on cities enacting inclusionary zoning and rent control. But a lack of high density zoning in the Phoenix valley is contributing to Arizona’s increasing dearth of affordable housing.

One of the most important solutions to rapidly rising housing prices is quite simple: build more housing. That can’t be done so long as cities and towns across the state opt for anti-growth zoning and regulatory policies that push out low-, middle-, and working-class residents who can barely afford to get by as is.

Policy solutions and thorough research on the issue already exist. Organizations like the have been fighting this battle for years and their policy recommendations deserve serious consideration as leaders race to solve this housing crisis.

The time is now for Arizona leaders, particularly those in cities and towns across the state who directly oversee zoning laws, to act on housing. Let’s venture beyond good intentions, and secure good outcomes as well.

Joe Pitts is studying business management (B.S.) and civic and economic thought and leadership (B.S.) at Arizona State University. He is an intern at the Arizona Â鶹´«Ã½Ó³»­ of Commerce & Industry, and the cofounder and Editor-in-Chief of the Western Tribune (westerntrib.com).

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As the Program Manager of the Arizona Industrial Development Authority (AZIDA), I feel compelled to respond and correct the record in the wake of the Arizona Republic‘s astonishingly false and misleading articles about the organization I serve.

We were stunned by the Republic’s contrived assertions that somehow our work puts Arizona taxpayer dollars or our state’s reputation at risk. None of that is true, leading me to question, what was the paper’s real motivation behind this story?

By way of background, AZIDA was established in 2016 with a three-fold mission: to make home ownership more affordable for low and moderate-income families; to issue conduit revenue bonds to lower financing costs and promote development; and to further economic development within the state.

Our all-volunteer board serves without compensation, and all meetings of the board are held in an open, public forum. In addition, one hundred percent of our funding comes from voluntary private sector fees. We receive no taxpayer dollars, but we do contribute dollars to Arizona in the tens of millions.

Since the creation of our organization less than six years ago, AZIDA has delivered over $60 million in funds supporting affordable housing and economic development — all without costing taxpayers a dime. In addition, AZIDA has originated nearly $9 billion in affordable home loans in Arizona, provided over $250 million in down payment assistance, and established a Special Grant Program that assists qualified veterans in purchasing homes located in rural counties.

As required by law, excess revenues derived from these programs are transferred to the state’s Housing Trust Fund, where they are used for affordable housing development and programs for services like homeless shelters. Since Fiscal Year 2017, AZIDA has transferred nearly $40 million to the state’s Housing Trust Fund at a time when affordable housing is in high demand.

As mentioned, AZIDA also issues revenue bonds, serving as a conduit between development sponsors and lenders, which usually means banks, insurance companies or other financial institutions. By acting as a conduit — a broker, essentially — to a loan between two separate private parties, AZIDA helps development projects advance at a lower cost than typically would have occurred, while generating revenue for the state through fees paid by the parties.

To date, we have closed a total of 110 conduit revenue financings, the vast majority of which went to support the construction of public charter schools, affordable multifamily housing projects, and health care facilities in the state.

With just one of those projects currently in default (not two, as the articles inaccurately report), our bond default rate is just 0.9%, the envy of the public finance industry.

It’s critical to point out that our bonds are not supported or backed by taxpayer dollars or Arizona’s credit or reputation. In the extremely rare occurrence that a developer defaults on an AZIDA bond, there is no liability to the state, as is widely known within the industry and clear in all our documentation.

Among the Republic’s many misleading assertions is that AZIDA’s board adopted a policy to engage in risky Recession-era swap speculation. That’s absolutely false. AZIDA has gone to great lengths, even engaging an independent registered financial advisor, to put in place policies that guarantee no exposure to any swap in any way.

The articles also falsely and inexplicably try to frame Governor Ducey as AZIDA’s “overseer” and someone who personally signs off on our bonds. Again, both statements are false. AZIDA is a non-profit corporation, not part of state government, nor are we “part of the Arizona Commerce Authority,” as the article falsely states at various times.

Other than appointing board members, the governor’s sole role, by statute, is to confirm that a public hearing has taken place for the limited number of our bond issues for which such a hearing is required under federal tax law. He is not involved in any way in the review or approval of any project or bond issue.

All this begs the question, why would these reporters go to such efforts, composing a lengthy 4-part series rife with false statements and inaccuracies, to smear our organization? Well, I think it’s worth considering the reporters’ ultimate intentions.

Starting in February 2021, I worked for nine months in good faith to provide all documentation requested and answer all questions posed by the reporters. At the beginning, it was clear their goal was to tie Governor Ducey to a project in which the board was involved, likely hoping to find a conflict of interest. As mentioned, the governor has no involvement in our board’s decision-making, so when this angle didn’t pan out, the reporters pivoted and began asking about any undue influence from the governor.

Again, there are no facts to support this pre-conceived narrative and never have been, so when this alternative pursuit also proved fruitless, the authors pivoted once again, moving away from their preferred “corruption” conclusion to a new one about “risky” investments, a conclusion not based on any evidence, but simply the reporters’ fanciful and uneducated opinions.

At AZIDA, we are proud of the work we’ve done to generate revenue for the state and support worthy endeavors like affordable housing and economic development. We will continue to operate with the utmost integrity and transparency, our motivation being to continue serving Arizonans as we’ve been charged to do.

After reading these reporters’ baseless assertions and observing their deeply suspect behavior, I can’t help but wonder, what are their motivations?

Patrick Ray is the Program Manager of the Arizona Industrial Development Authority and can be reached at pat.ray@arizonaida.com.

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Finding solutions to complex problems requires understanding the scope of the challenge ahead. Affordable housing, a much-discussed issue facing our Valley and our state, is no different. While we may disagree about how best to build and fund more housing for families at all income levels, we should at least agree on the basic facts – like how often renters are evicted in Maricopa County and statewide.

Media reports over the past few months have cited numerous eviction statistics. The numbers tossed around have been massive, from ,� to a much-quoted August KJZZ piece that cited � statewide.

The problem with these numbers? They’re wrong.

A simple analysis of Arizona court statistics shows that the rate of evictions in Maricopa County has remained stable since the Great Recession of 2008. For every 1,000 rental residents in the county, about 16 or 1.6% ended up being evicted in 2018. Counter to the recent narratives, that’s the same eviction rate that existed in 2008.  Interestingly, the number of eviction actions filed in county courts have dropped significantly by nearly 18 percent between 2008 and 2018. Meanwhile, the county’s renter population jumped by 32 percent across the same decade.

Most importantly, the eviction rate in Arizona has not increased, and we are far from experiencing record levels of evictions.  Those are the facts, and it’s a good thing.

As the president of the Arizona Multihousing Association, a trade organization with more than 3,000 members including owners of a single rental home and the state’s largest rental apartment property owners, I understand well that each eviction represents a uniquely difficult moment for both renters and property owners. For renters, evictions may create pain and inconvenience. For property owners, the cost of eviction and re-renting an apartment home sabotages their investment and the bottom line. For all these reasons, our organization and our partners are working hard to help address one of the underlying causes to evictions, and to attack the undersupply of housing that represents the crux of the problem.

How undersupplied is the Valley rental market? According to a study by the National Apartment Association, metropolitan Phoenix would need to build 11,000 units a year for the next decade to meet the rising demand created by being the nation’s fastest-growing county. Every day, 200 new residents move to Maricopa County. Because we are nowhere near building at such a furious pace, rents continue to rise. That’s the law of supply and demand at work.

Building more housing for low-income families will require innovation and collaboration between the private and public sectors. Locally, elected officials must work with developers to remove the onerous bureaucratic restrictions that drive the cost of housing higher. Overly restrictive zoning, cost-intense design guidelines, and discretionary review processes which allow arms of local government to add costly fits and finishes to projects all contribute to making housing construction more expensive. Inevitably, higher costs mean higher rents – or less investment from developers who choose to take their limited resources elsewhere.

At the state level, momentum has begun to build to piggyback on a federal program known as the Low-Income Housing Tax Credit, or LIHTC. Signed by President Reagan, expanded by Democratic presidents and continued by President Trump, federal LIHTC has supported the construction or renovation of about 2 million housing units nationally. Already, 16 states have created their own LIHTC program to speed up the construction of housing for those who would struggle to otherwise afford to pay rent. In Colorado, the state LIHTC program has helped created about 5,000 new affordable housing units since 2015.

Each new unit represents a boost to Arizona’s economy and our pivotal construction industry. Even more importantly, the family living in each new unit will be better able to afford their home.

No matter what the statistics say, we should all be able to agree that Arizona’s families deserve our very best effort when it comes to meeting such a critical challenge.

Courtney Gilstrap LeVinus is the president and CEO of the Arizona Multihousing Association

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Despite the Valley’s booming economy, affordable housing continues to be an issue for many Phoenix-area families, as the increase in housing prices outpaces income growth.

That could be troubling news for the region, because higher homeownership rates benefit the community as much as homeownership benefits individuals emotionally, physically and financially.

According to the National Association of Realtors, there are several important benefits to owning your own home, including:

• Higher educational performance for children
• Greater participation in civic and volunteer activities
• Lower crime rates
• Better-maintained neighborhoods

Bank of America recently released the results of its , which explores the attitudes, preferences and behaviors of the modern homebuyer.

The study found that 93 percent of those who have bought a home said they’re happier because of it, and 83 percent said they wouldn’t go back to renting.

While many recognize the financial benefits of homeownership, 82 percent said they also derive satisfaction from the time they spend on hobbies and passions since purchasing a home — including new pursuits such as gardening, cooking and interior design.

Beyond hobbies, 78 percent said they feel satisfied with the quality of their social life and credit homeownership with their improved ability to entertain and gather with friends and family.

Given interest rates have fallen in recent months to relatively , we may see this start to change. After all, Phoenix offers a booming economy, a mild winter climate, plentiful options for arts, culture, sports and entertainment, and none of the natural disasters that affect so many other regions of the country.

Rent vs. Buy

Some potential buyers on the cusp of homeownership may be weighing the pros and cons of buying versus renting. There are benefits to each, with renting allowing for greater ease if you’re planning on relocating frequently and requiring less money up front.

But Phoenix area rents are skyrocketing, and Zillow calculates that it’s actually cheaper to buy than to rent in the Phoenix area if someone stays in their home for just .

Unfortunately, many prospective buyers fear the upfront costs and self-select out of homeownership without getting all the details.

In fact, said the biggest barrier to homeownership is saving enough money for a down payment and closing costs. The good news is that solutions exist to give prospective buyers the power to get over this hurdle.

Bank of America recently launched a to help more than 20,000 individuals and families overcome homebuying hurdles, including in Phoenix. Benefits include a new down payment grant program that gives eligible borrowers up to $10,000 to be used toward their down payment, with no repayment necessary.

Homebuyers may also be eligible to receive up to $7,500, which can be used for non-recurring closing costs or to buy down their interest rate.

Increasing homeownership in the Phoenix area will be a win-win for homebuyers, our communities and our economy.

I’m proud that Bank of America is working to find solutions to make homeownership a reality for more local families.

Diana Varley-Roberts is a vice president and area lending manager in consumer lending at Bank of America.

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A vision to fill in the dusty stretches of the Salt River with teeming development, recreation and wildlife refuges is becoming a reality step by step.  

The dream was something two elder Arizona statesmen, U.S. Sen. John McCain and U.S. Rep. Ed Pastor, worked their entire careers to nurture.  

Both passed away recently, just months after a historic meeting March 31, 2018 where all the necessary parties – tribes, cities, state and federal agencies, non-profit and business groups – committed in writing to make it happen.  

Called Rio Reimagined, the project’s first year was a blockbuster.

In addition to winning a coveted federal urban waters partnership, the Corps of Engineers has agreed to help with several projects. There is broad-based public and private support.

Riverfronts are also bustling with new multi-family residential, corporate and industrial development, particularly in Tempe Town Lake and Mesa.

Residential, hospitality and beautification projects are also moving forward in Goodyear, Buckeye and Avondale.

Suddenly, investors are interested in long ignored “brownfields� along the river, former landfills, mining pits and other areas that have been cleaned up and are suitable for development, said Melissa McCann, Director of the Arizona State University Exchange that is acting as a coordinator for Rio Reimagined as it takes root.

Much of the interest is due to most of the river’s corridor, roughly 70 percent, within federally designated opportunity zones, McCann said. Approved by Congress last year, the Opportunity Zone program is designed to bring capital investment into underserved areas. Investors receive reductions on capital gains taxes.

“ for innovative solutions for those sites,� McCann said. “It’s enticing for them to think that investors are interested in brownfield sites along the river that they wouldn’t have considered before.�

Rio Reimagined wins coveted ‘river city’ partnership  

Rio Reimagined also just received a highly sought after prize. It is now one of 20 river cities involved in the Environmental Protection Agency’s Urban Waters Federal Partnership.

The Partnership offers many rewards: preference for grants, an ambassador position to coordinate the project for four years, and assistance from 20 federal agencies and 19 nonprofits that support the 19 other urban river systems. Intended to revitalize waterways and promote economic, environmental and social benefits, it also builds on local efforts to stimulate local economies and new jobs.

Arizona’s congressional delegation stepped in to nominate and win this coveted opportunity that will elevate the project’s potential exponentially. Sen. Martha McSally met with Environmental Protection Agency (EPA) Administrator Andrew Wheeler to promote Arizona as an ideal fit for the partnership.

Industry and non-profits help carry dream forward

Many business and nonprofit groups also are involved in supporting and assisting Rio Reimagined. The non-profit Arizona Forward, which brings together business and civic groups to promote environmental sustainability and economic vitality, held its first Sustainability Summit to get a starting framework for the project.  More than 200 experts shared ideas and developed recommendations.

“This was an important first step in a major multi-generational project,� Arizona Forward CEO Lori Singleton said after the summit. “When we brought in folks from the San Antonio Riverwalk and the Los Angeles River Revitalization and showed that these types of projects take a long time but have results that last generations, everyone got excited. We recognize this as an incredible opportunity to leave a meaningful legacy for future generations.�

Among the many groups supporting Rio Reimagined are:

Arizona Forward

Valley Partnership

Arizona Audubon

Salt River Project

Greater Phoenix Leadership

Greater Phoenix Economic Council

Lower Gila River Collaborative

Kyl Center for Water Policy

Team Rubicon

Sonoran Institute

WESTMARC

Rio Salado project’s evolution   

Rio Reimagined is the next step in the evolution of the original Rio Salado Project started in the 60s by Arizona State University Design School students and staff.

Last year, fueled by the wish of Sen. McCain, eight river communities signed a letter of intent to coordinate to revitalize a 50-mile stretch of the Gila and Salt rivers. The rivers’ path slices through eight communities: the Gila River Indian Community, Phoenix, Mesa, Tempe, Avondale, Buckeye, Goodyear, and the Salt River-Pima Maricopa Indian Community

The project has multiple objectives: public open space, environmental and water quality, housing, transportation, economic development, workforce development, community sustainability and resilience for the future.

To see a map of the river, go to:

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