UMOM Started Construction on Phoenix Housing Project
The 192-unit development uses federal tax credits to expand affordable housing for Phoenix residents.
Updated on Oct. 8, 2026 in Philanthropy
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UMOM New Day Centers has begun building Salamanca Square, a 192-unit affordable housing project located near 39th and Grand avenues. The $64 million development is designed for families earning up to 60% of the area median income.
Why it matters
This project helps address the local affordable housing shortage by leveraging federal tax incentives to subsidize development costs. It follows a land transfer process where Phoenix purchased the site from the Alhambra School District to facilitate the nonprofit's construction.
The development represents a $64 million investment in 192 new apartment units, targeting households with a maximum income of $67,440 for a family of four. The land for the site was acquired from Phoenix for $2.3 million.
The players
UMOM New Day Centers
A nonprofit organization that provides housing and support services and has developed 1,000 units.
Alhambra School District
A public school system that divested land determined to be unnecessary for educational purposes.
Phoenix
The municipal government that acted as an intermediary to acquire and transfer the development site.
The details
The project utilizes the federal Low Income Housing Tax Credit program to finance construction on land formerly held by the Alhambra School District. Units will range from one to four bedrooms to accommodate varying household sizes while maintaining affordability caps at 60% of the area median income.
Timeline
Early 2025: Phoenix purchased the development land from the local school district.
2027: Construction is expected to be completed.
Market Landscape
This project follows the industry-standard pattern of utilizing the Low Income Housing Tax Credit program to offset high development costs for new affordable residential inventory. It serves as a case study for municipal-nonprofit land partnerships in dense urban markets.
Operators in the Phoenix construction and real estate sectors should monitor the project's 2027 completion date as a benchmark for local housing supply shifts. Business owners should also note the ongoing use of federal tax credits as the primary financial engine for regional affordable housing.
The takeaway
Large-scale affordable housing projects currently rely on complex inter-agency land transfers and federal tax incentives to remain viable. Business operators can track the local area median income metrics used by these developers to understand evolving household purchasing power in Phoenix.
Further reading
For context on how nonprofits drive local development, visit the Philanthropy section.
Source note: This article includes information reported by AZ Central.
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