Chandler affordable housing plan gets narrowed down. Residents still aren't thrilled

The developers of a controversial affordable housing project in Chandler have reworked their pitch after receiving pushback from locals, nixing the original plan to build a 500-unit complex that would house families and renters over 55 in favor of a 280-unit project that would only serve seniors.

But it's still not enough to end resident opposition.

The developer at the receiving end of the backlash is Dominium. It's a nationwide company that focuses exclusively on building affordable housing complexes, including in multiple Valley cities from Goodyear to Mesa to south Phoenix.

Earlier this year, the developer proposed building an affordable housing project in Chandler at a 23-acre site along Ocotillo Road near Arizona Avenue. Most of the 518 units would have been reserved for people who earn less than 60% of the area's median income, making the income cap $37,000 for individuals and $53,000 for families of four.

The pitch quickly became one of the most controversial issues that the city of roughly 275,000 has seen in recent memory. Between 150 and 200 Chandler residents showed up at a town hall meeting in January to oppose the project over concerns ranging from crime to traffic to the capacity of nearby public schools. Most were affiliated with a grassroots group, known as Voice of Chandler, which was founded in opposition to the proposal.

The Chandler City Council unanimously opposed the project because it did not comply with the city's voter-approved general plan, which set the property aside for "employment uses" rather than housing. But the site is under Maricopa County's jurisdiction, meaning city leaders have no real control over it.

The backlash was enough to force Dominium back to the drawing board, however. In an attempt to address resident concerns, the company overhauled its plan by:

• Slashing the number of units by 46%, bringing it down to 218 in total. The project would increase the number of affordable housing units in Chandler by nearly half. They would also be the only senior-specific affordable housing units in the entire city.

• Making the complex a senior-only facility that will serve needy residents who are 55 and over. Caretakers who are at least 40 can also live with an eligible senior on site, and the income rules remain the same.

• Reserving half of the currently empty site for employment uses, rather than additional housing.

Dominium spokesperson Sarah Shambrook said the planned makeover "completely solves the school capacity problem and helps to quell traffic concerns as seniors tend to have smaller household sizes, less driving members of a household, and tend to have more retired members of the household who drive at off-peak hours."

Shambrook also explained that the new proposal is the result of seven months of outreach "to local neighbors, city leaders, nonprofits, faith-leaders and commissioned a poll on housing needs in Chandler." Dominium did not do that the first time around, which company representatives said was a "mistake" they hope the new plan corrects.

But the plan still isn't acceptable for many residents.

The company presented its new proposal at another town hall on Tuesday. The event drew only about a couple dozen residents, but the majority of those who showed up were still dead set against the project.

Some objected to the project's use of a federal funding program called Section 42, which was approved in 1986 under then-President Ronald Reagan. They called it federal overreach.

Through that program, developers agree to designate a property as affordable housing for 30 years in exchange for tax credits equaling 30% of the total development cost. Developers then sell those tax credits to investors, using the proceeds to fund construction.

Others feared that the affordable complex would bring crime to the area, and specifically pointed to the fact that 40-year-olds can live in the apartments if they are with someone who is at least 55.

Dominium runs background checks on everyone who lives in the apartments and has the right to reject those with criminal histories. The company said there has never been a police incident involving any resident at their senior housing complexes.

Many of the opponents argued that the location was the real problem because it did not comply with Chandler's General Plan. But, again, that has no bearing on the property because it is Maricopa County land.

Those same speakers said they are not opposed to housing elderly people who need low rent and that they take offense to being called "NIMBYs," a term used for people who oppose all nearby affordable housing because they don't want to live around those who don't make much money. That was met with applause from the audience.

But the same crowd later clapped just as loud when a resident discussed the complex housing elderly veterans, saying their military service didn't necessarily entitle them to housing in a well-to-do area.

Republic reporter Sasha Hupka contributed to this article.

Reporter Sam Kmack covers Tempe, Scottsdale and Chandler. Follow him on Twitter @KmackSam or reach him at sam.kmack@arizonarepublic.com.

This article originally appeared on Arizona Republic: Chandler affordable housing project scaled back; locals still unhappy