PIMA COUNTY (June 5, 2025) – The Pima County Board of Supervisors approved $8.5 million toward affordable housing in next year’s fiscal year budget and adopted a 10-year policy that allocates at least $200 million in additional funding for a 10-year period that begins in Fiscal Year 2026-27.
The Board has dedicated a base of $5 million in annual gap funding for the development of affordable housing since July 1, 2022.
The additional $3.5 million for affordable housing in Fiscal Year 2025-26 mostly will come from interest on funding from the COVID-era federal American Rescue Plan Act, while a small portion could come from Pima County’s contingency fund, according to County Administrator Jan Lesher at the Board of Supervisors’ meeting. The approval does not increase primary property tax rates.
The 10-year plan includes at least $200 million over the $50 million already in the base budget.
“This historic plan will significantly expand affordable housing across Pima County and help people stay safely housed,” said District 2 Supervisor Dr. Matt Heinz, who submitted the proposals to the Board.
“It’s a victory for thousands of families in our community who’ve been pleading for action in the face of a nationwide affordable housing crisis. With this measure, Pima County is leading by example to invest not just in buildings, but in stability, opportunity, and a future for so many people across our community."
Preliminary findings from a Pima County Housing Study, underway by ECOnorthwest, show an additional 116,000 housing units are needed in Pima County over the next 20 years, with almost half of those housing units needed for lower income families and individuals. This includes addressing housing needs within cities and towns, which is why the County is coordinating a Regional Housing Strategy and Funding Plan with input from the cities and towns.
Since dedicating funds to affordable housing on July 1, 2022, the Board has invested $15,984,361 in gap funding for 19 projects recommended by the Pima County Regional Affordable Housing Commission. The funding has supported 1,332 affordable housing units to be developed or preserved in Pima County.
Projects are for homeownership and rental properties.
The gap funding provided by the County plays a key role in bridging financial shortfalls, ensuring developers can launch or complete affordable housing projects in full.
"Gap funding plays a crucial role for developers when they’re working with lenders and investors, because every dollar helps get the project off the ground and across the finish line,” said Sofia Blue, affordable housing division manager for Pima County’s Community & Workforce Development Department, which oversees the commission.
“Without that support and local financial backing, some of these projects might not happen at all -- or would be scaled down significantly.”
The County is taking a multi-departmental approach toward affordable housing development and preservation.
- Community and Workforce Development leads the solicitation process for the development and preservation of affordable housing, including gap funding, as well as weatherization and home repair programs.
- Development Services oversees planning and zoning activities that encourage the development of a diversity of housing types.
- Real Property Services leads the solicitation process for the development of affordable housing on vacant County-owned land.
The actions align with the housing pillars of the Board-approved Prosperity Initiative, a regional partnership aimed at reducing generational poverty.