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Phoenix considers dropping permit fees for low-income housing developers

Published: Monday, May 1, 2023 - 5:05am
Updated: Monday, May 1, 2023 - 7:32am

In an effort to attract more housing for low-income residents, Phoenix could follow in Glendale’s footsteps.

Developers who receive a state tax credit to build low-income housing can also get city fees waived in Glendale. Those development fees can range from a few hundred thousand to $1 million. 

Phoenix City Councilwoman Debra Stark wants her colleagues to consider budgeting $2 million to waive or reduce costs for eligible developers.

“Because I think that would be a very useful tool, incentivizing affordable housing,” she said during a council subcommittee meeting.

Phoenix has about 20 active projects for low-income housing. Staff reviewed seven projects to present an average review and permit fee cost to council members, which was $300,000.

The city’s planning and development department is considered self-funded, which means customer fees are designed to cover the department’s costs. 

The full City Council must discuss potentially reducing or waiving fees before taking any action.

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