The Cottonwood City Council voted to support an application for low-income housing tax credits for the construction of new affordable apartment units as part of the development of the Verde Plaza Apartments during its regular meeting on Tuesday, March 19.
The Verde Plaza Apartments are planned to be an income-restricted affordable housing development consisting of 52 existing units that are currently being renovated and 18 new units under construction located on city-owned land at 125 S. 7th Street.
The developer’s application included a proposed ground lease option and a letter of support regarding a potential $100,000 local gap financing loan to Verde Plaza to support its application for competitive LIHTC awards.
In March 2022, the council approved a similar proposal for the first phase of the project. This application is for phase two. The gap financing would come from budget reserves allocated for affordable housing.
Over 65 people have already applied for the apartments. Around 25% of Cottonwood households earn 60% or less of the average median household income, which is $39,437. There are only two low-income housing apartment complexes in the city, Verde Plaza and Mingus Point.
The council unanimously voted to support the application for LIHTC.
Verde Plaza Apartments is accepting applications and rental assistance may be available to those who qualify. For more information, call (928) 634-7269.
