A New Leaf to build a $30M affordable housing complex for seniors in Mesa
A Mesa-based nonprofit plans to create affordable housing units for senior citizens and veteran residents with a new $30 million development.
The Mesa City Council approved zoning changes on a one-acre property in July to allow A New Leaf, a housing and social service agency, to begin development on Phase 4 of its La Mesita housing campus.
The agency purchased the land, previously the location of a payday lending establishment, in 2015 to one day expand its services. Phase 4 will complete the campus on the northwest corner of Main Street and Dobson Road.
The project will have two floors of residential units with 48 studio units and six one-bedroom units for a total of 54 affordable units, according to planning documents submitted to the city. It will be connected to the larger campus, which offers financial literacy classes and other programs for residents living in the temporary housing shelter.
Kathy DiNolfi, the agency’s chief program officer, said the project will be funded largely by American Rescue Plan Act dollars. A New Leaf plans to apply to the state's Housing Department for a low-income housing tax credit. That allows investors to get tax credits if they finance low-income housing.
The city has also earmarked $1 million in federal funding from its HOME Investment Partnership Program allocation for fiscal year 2024 to pay for construction costs. To qualify for the funding, A New Leaf would need to be awarded the tax credit from the state and apply to the City Council, said Michelle Albanese, the city’s housing and community development director.
Nonprofit sees increase in older adult needs
DiNolfi said during the COVID-19 pandemic and as American Rescue Plan Act funding became available, staff members at the nonprofit started to think about how they could address housing issues with a population the other projects hadn’t focused on.
DiNolfi said the agency has seen a rise in older adults requesting their housing services and financial help to pay utility bills.
Since the COVID-19 pandemic and rising inflation, the number of seniors experiencing homeless is rising, she said.
“Veterans also ... as long as I’ve been doing this work, they have been marginalized into one of the groups experiencing homelessness to a large degree.”
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In Phase 4, 10 units will be set aside for veterans specifically, with recognition of the crossover between the two demographics, DiNolfi said.
“Our goal is to provide affordable housing so that they have income to take care of those other needs,” DiNolfi said. She said the nonprofit hasn’t decided yet on the rental costs, but it's reasonable to say it could range from $300 to $500 per unit.
Barring any setbacks, the project could break ground by the end of the year, DiNolfi said.
What is La Mesita?
La Mesita was founded by Eddie Basha and Ross Farnsworth in 1991, who converted a 1940s motel into a temporary homeless shelter.
It was acquired by A New Leaf in 1998, DiNolfi said.
Because of decaying infrastructure, the motel was demolished to build an affordable housing complex. The following phases brought back the emergency family homeless shelter and permanent support apartments in 2017.
The La Mesita family homeless shelter has 16 units where families can stay up to 120 days in one- or two-bedroom apartments. La Mesita Apartments has 110 apartment units ranging from studios to four-bedroom.
Reporter Maritza Dominguez covers Mesa and Gilbert and can be reached at maritza.dominguez@arizonarepublic.com or 480-271-0646. Follow her on Twitter @maritzacdom.
This article originally appeared on Arizona Republic: A New Leaf to build $30M senior affordable housing project in Mesa
