THE ARIZONA BILL FOR AFFORDABLE HOUSING

• Freeze residential property tax rates.
• Assess a 5% residential economic impact fee on the difference between the state median price and the purchase price of a home.
• Designate 40% to the state and 40% for rentals for the physically disabled, the mentally ill, the elderly, widows, students, native Americans and the needy for their special housing needs.
• Purchase low-bid properties with the remaining amount after administrative costs.
• Sell the properties at 1/2 price to low-bid developers to build low-cost housing and send the revenues to the state.

RATIONALE

Arizona is one of the fastest growing states and, in the process, has amassed abundant wealth in the value of its residential housing. Yet only 1/2 of Tucson's households qualify to buy a median-priced house, a fact which is mirrored by the rest of the state. A major reason for this situation is the continual flow of homebuyers coming in from other states, about 20% of all homebuyers in Arizona. The effect is to push up the prices of homes and property taxes here, thereby, leaving the locals out in the cold. This proposal seeks to correct this imbalance by providing a structure which will create affordable housing, stimulate the economy and replenish the state general fund.

STRUCTURE OF THE TASK FORCE

The Task Force is comprised of seven members:
1. A Chairperson from a bank in Southern Arizona
2. An Administrator from the State of Arizona Department of Housing
3. A Solutions Coordinator from the University of Arizona
......4. A Strategy Solutions Scout from a team of government planners, university researchers, legal experts and the Arizona Department of Housing.
......5. A Networking Solutions Scout from a team of experts in processes, communications, accounting and computer technology.
......6. A Client's Solutions Scout from a team of buyers and special housing needs representatives.
......7. A Server's Solutions Scout from a team of lenders, property owners, real estate companies, environmentalists and developers.

BUDGET TEMPLATE..........*amounts are only estimates at this time; actual figures are still pending*

100% Residential Economic Impact Fees......+$170 Million

40% State General Fund.............-$68 Million
40% Special Housing Needs..........-$68 Million
5% Administrative Costs............-$8.5 Million

15% Property Purchases.............-$25.5 Million

7.5% Property Sales--additional revenue sent to the state general fund..................+$12.75 Million



RESULTS

1. $68+ million will be sent to the Arizona state general fund or 40% of the original residential economic impact fees plus 7.5% of the revenues from the property sales.
2. $68 million will be sent as rental vouchers to those with special housing needs.
3. 4,000 houses could be built yearly, delighting the unions, developers, realtors, and lenders because about 50,000 construction workers would be needed for their construction.
4. All residential property owners will experience relief when the property tax rates are frozen and those who are qualified while seeking affordable housing will find it!

INTERACTION

February, 2003. A staff person from U.S. Senator Kyl's office, Henry Kenski, called me and gave me a rave review on the initiative, noting, of course, that it is a state issue and not a federal one.

3-6-2003. The Governor of Arizona's office emailed me to thank me for the initiative and relayed my questions regarding exact housing numbers to the Arizona Department of Housing.



CLOSING

Sincerely,
Charles Phillips
1587 E. Prince Road, Tucson, Arizona 85719.

cell phone (520) 245-1375 Last updated 9-16-03