Stone and Speedway Phase I Awarded $2.5M in Housing Tax Credits

Stone and Speedway Phase I Awarded $2.5M in Housing Tax Credits

Published on June 08, 2026

The Arizona Department of Housing (ADOH) announced on June 5th that Stone and Speedway Phase I, a mixed-income housing development, has been awarded $2.5 million in highly competitive Low-Income Housing Tax Credits (LIHTC). The award will support the construction of 44 affordable housing units, and 12 required market-rate units at the southwest corner of Stone Avenue and Speedway Boulevard.

The award funds the first phase of a two-phase development that will ultimately provide 119 residential units. Building on momentum generated since 2022, Stone and Speedway becomes the fifth City of Tucson-associated project within the Thrive in the 05 Redevelopment Target Area to receive LIHTC funding in the last five years.

Gorman & Company served as the principal applicant for the LIHTC award.

"The LITHC award for the Stone and Speedway site is a major win for our residents, for the City of Tucson and affordable housing in our community," said Mayor Regina Romero. "Transforming this long-vacant property has been a priority since my time as Council Member representing Ward 1, and I am grateful to Vice Mayor Santa Cruz for continuing to champion this project and help it move forward," said Mayor Regina Romero.

"I am grateful to Mayor Romero for her continued leadership and commitment to making this project a reality," said Vice Mayor Lane Santa Cruz. "This award is the result of years of work by residents, neighborhood leaders, community partners, development partners, and City staff. Stone and Speedway will transform a long-vacant site into much-needed housing and advance the vision residents have helped shape for the future of Thrive in the 05."

Stone and Speedway is an urban infill development that will include approximately 80 percent affordable housing and 20 percent market-rate housing. The site is located on a City-owned vacant parcel at a major intersection across from Pima Community College's Downtown Campus and along Tucson's planned Bus Rapid Transit corridor.

The development represents the final two phases of the Choice Neighborhoods Implementation (CNI) Housing Strategy within the Thrive in the 05 area. The broader Choice Neighborhoods effort is supported in part by a $50 million grant awarded by the U.S. Department of Housing and Urban Development (HUD) in 2023.

"This development demonstrates what is possible when we strategically layer funding sources and work collaboratively to address our community's housing needs," said Mayor Romero. "I am proud of El Pueblo Housing Development and Gorman & Company, as our Choice Neighborhoods housing implementation partner, for their persistence and success in securing this highly competitive award from the Arizona Department of Housing."

"With the support and direction of Mayor and Council, Housing and Community Development has remained focused on creating desperately needed affordable housing during a national housing crisis," said Housing and Community Development (HCD) Director Ann Chanecka. "This award reflects the strength of the partnership behind this development and the quality of the proposal submitted to the Arizona Department of Housing."

The development will be constructed in two phases and will consist of three multi-story residential buildings. The building fronting North Stone Avenue will rise five stories, while the building along West Speedway Boulevard will be four stories. A third building will transition to two stories along North 9th Avenue to provide a more compatible scale adjacent to the lower-density Dunbar Spring neighborhood.

Development amenities will include enhanced security features, in-unit washers and dryers, community and mixed-use space, indoor and outdoor bicycle parking, landscaped gathering areas, public art, solar panels, and 95 on-site parking spaces across both phases. The project was designed by Tucson-based architecture firm Poster Mirto McDonald.

Construction on Phase I is expected to begin in summer 2027 and be completed in winter 2028. Phase II is anticipated to begin in spring 2028 and be completed in fall 2029. The total development cost is estimated at $63 million.

Affordable units will be available to households earning up to 50 percent of the Area Median Income (AMI). Affordable housing plays a critical role in reducing housing cost burdens, preventing homelessness, supporting economic stability, and strengthening neighborhoods. The inclusion of market-rate units, as required by HUD, helps preserve neighborhood affordability while promoting long-term economic diversity and stability.

The development is part of Tucson's broader effort to address housing affordability. In 2021, Mayor and Council adopted the Housing Affordability Strategy for Tucson, which called for the development of affordable housing on City-owned land. The City later established El Pueblo Housing Development, a nonprofit entity dedicated to accelerating affordable housing production throughout Tucson.

"HCD is grateful for the thoughtful input provided by residents throughout the planning process," said Chanecka. "We look forward to continuing to work alongside neighbors as we bring this important development to life."

Stone and Speedway is part of Thrive in the 05, a neighborhood transformation initiative that includes the complete renovation of Tucson House and the development of new affordable housing throughout the area.

The Thrive in the 05 Transformation Plan outlines a community-driven vision for Tucson's historic northern gateway: a safe, affordable, and inclusive neighborhood that cultivates sustainable transformation through resiliency, reinvestment, and shared leadership while honoring its history and cultural identity. The plan was adopted by Mayor and Council in 2022.