Arizona is deep in a housing crisis. Families across the state — seniors, essential workers, veterans and young parents — are struggling to find a place they can afford. Rising rents are outpacing wages, and the shortage of affordable homes grows each year. 

Amid the crisis, the state’s Low-Income Housing Tax Credit (LIHTC) program is doing what few programs manage: it’s delivering results. It has already brought new housing online in both rural and urban communities and fueled job growth and economic activity along the way. We can’t afford to let it expire. 

A smart investment that builds what we need most 

Here’s how the program works: Developers are awarded tax credits if they agree to keep rents affordable for at least 30 years. Those credits help fund construction — but only after the buildings are up and occupied. That means Arizona gets real housing first, before any state dollars go out the door. 

The State LIHTC specifically targets the kinds of projects that would otherwise not be financially feasible — especially in rural towns and underserved neighborhoods that federal programs often overlook. 

Real projects. Real impact. 

Across the state, the program is already making an impact: 

• Globe’s Hill Street School has been renovated into 64 affordable apartments for seniors. This project — powered by both state and federal credits — is now open and providing much-needed housing in a historically underserved area. 
• In Prescott Valley, 72 additional senior units are under construction at the View Point II community. The state tax credit filled a funding gap that would have otherwise stalled progress. 

In total, projects supported by the state LIHTC are expected to deliver over 1,500 homes, most of which are affordable to low-income households. 

It pays off — big time 

According to analysis from Elliott D. Pollack & Co., the developments sparked by this program are generating: 

• $746 million in statewide economic activity
• 4,558 construction jobs
• $318 million in wages 

Once built and occupied, these homes will support 464 permanent jobs, $66 million in annual local spending, and $8.1 million in tax revenues each year. 

The return on investment is clear. Over time, the state earns back more in tax revenue and economic growth than it provides through the credit. It’s a fiscally sound strategy that pays dividends across multiple sectors. 

Impact before state investment 

The Centerline on Glendale project tells the story well. It received a $2 million state tax credit. Despite that, there was no impact on the state budget for fiscal years 2022, 2023 or 2024. The state does not see an impact until FY2025, when the project is completed and the credit is finally claimed. 

In the meantime, the project brought in 884 construction jobs, paid out $63.6 million in wages, and added $149.4 million in economic activity. Once occupied, new resident spending is projected to generate another $15.4 million annually. 

The program puts housing and economic gains in motion before a single dollar leaves the state budget. 

A program at risk 

The State LIHTC was created in 2021 with bipartisan support and a four-year funding window. Unless the Legislature renews and expands it in 2025, the program will sunset — right when it’s producing the strongest results. 

Ending it would halt construction on future projects, dry up local investment and slow momentum on housing solutions. 

This program delivers 

The numbers speak clearly. Arizona’s State LIHTC has supported the renovation of a historic school into senior housing. It’s helping fill critical gaps in rural towns. It’s bringing in jobs and new revenue. And it’s doing so in a fiscally responsible way. 

As Arizona’s housing shortage continues, this credit gives communities a tool that works. The state must act now to renew and expand the program to keep pace with the demand for affordable housing.

Nicole Newhouse is the Executive Director of the Arizona Housing Coalition.