Home / Home news / Resort developer sued over low-income housing

Resort developer sued over low-income housing

A developer who wants to build a $600 million luxury hotel in Scottsdale is in a battle with the federal government.

The government is upset over the destruction of an apartment complex that was home for low-income people.

The Phoenix Revitalization Corporation this month sued Scottsdale Canal Development in federal court.

The nonprofit Phoenix Revitalization Corporation is a remnant of the Resolution Trust Corporation, which sold distressed properties at bargain prices.

In some cases, it attached low-income-housing restrictions to properties.

The government claims the developer violated restrictions requiring the 12-unit complex to remain low-income housing.

It’s the latest hurdle for Scottsdale Canal Development in a three-year push to rezone and clear the site for development.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Check Also

(Deposit Photos/Focus Pocus Ltd.)

Ducey signs bill barring cities from taxing sugary drinks

The proposal doesn't specifically mention taxes on sugary drinks, only saying any tax on food products must be uniform. But testimony from a supermarket industry lobbyist industry made it clear that's what the bill is all about.