At its regular meeting on March 18, the Camp Verde Town Council voted against approving a resolution expressing the town’s commitment to issue a GAP loan, development fee waiver and employment center documentation.
The resolution was originally for the proposed Montezuma Terrace development project contingent upon the award of Low-Income Housing Tax Credit funding.
In January, town staff met with representatives from Woda Cooper Development to review the Montezuma Terrace development to be located at 360 N. Homestead Parkway. The project will be an 80-unit multi-family housing development with 26 one-bedrooms, 33 two-bedrooms and 21 three-bedroom apartments.
The development will be workforce housing and for households earning between 30% to 60% of the area median income.
A single person with an income at 60% of the AMI would make approximately $38,000 annually, or $54,000 for a family of four. A single person with an income at 30% of the AMI would make approximately $19,200 or $27,000 for a family. Some 30% of the units will be at 30% of the AMI. The project intends to serve families, single parents, veterans and seniors.
The project is being submitted for funding through the Low-Income Housing Tax Credit program which is administered by the Arizona Department of Housing to develop affordable housing. This program is highly competitive and prioritizes projects that demonstrate local government support and is near qualifying employment centers.
To strengthen their application, the developer has requested the town provide gap financing, a development fee waiver and documentation showing proximity to an employment center. The loan would be in the amount of $15,000 with a loan term of 20 years. The town’s commitment is contingent upon whether the project receives the tax credits.
The fee waiver would be up to $50,000 in town development related fees like utility connections, development impact fees and permits. The application may receive more points if located near a qualifying employment center. The developer is requesting the town submit a letter to ADOH confirming that the project is located within 1.1 miles of Urgent Care at Northern Arizona Healthcare.
Joseph McCabe, representing Woda Cooper Development, said the project overall is a $24 million investment on their behalf. This project is to solve the local housing crisis, he said, and not to bring in people outside of the community. Tenants would be selected following background checks.
McCabe said units could be as low as $335 per month for the person on the most restricted income, and the highest at $1,460. The size of the unit, household size and income are all factored into consideration. He estimated that a 3-bedroom unit would be roughly $1,100 to $1,200 per month.
He said the site is already under contract and construction is anticipated to start within the first quarter of 2027 with a 14-month construction period. They aim to start leasing in the second quarter of 2028.
The LIHTC application is due in April with funding to be awarded in June. McCabe said the tax credit would make up about $19 of the $24 million in funding. If the project is not awarded funding, he said they will consider re-applying the following year. If awarded, the town would start negotiating how the loan structure would work. Funding for the project would be structured as a FY2027 commitment.
The council went into executive session for further discussion.
“At this time, I don’t feel we are prepared to commit to the loan or the fee waivers that are part of the LIHTC submittal,” Vice Mayor Wendy Escoffier said, who then moved to deny the resolution. The vote to deny the resolution passed unanimously.
