For the second consecutive year, Tucson is poised to receive a substantial boost to its affordable housing efforts, with the Arizona Department of Housing awarding $2.5 million in low-income housing tax credits

The upcoming development, “Sugar Hill on Stone,” will be situated on a 1.3-acre lot that formerly housed the Bum Steer nightclub.

Housing people is one of the most stabilizing forces,” said Tucson Mayor Regina Romero.

The new development will feature 66 affordable housing units, ranging from one to three bedrooms. Additional amenities will include a playground and multipurpose rooms. The project is part of the Thrive in the 05 initiative to revitalize the area.

The name of the development pays homage to the historically black neighborhood of Sugar Hill one of the few neighborhoods where black post-WWII families could buy homes.

“Its along the future bus rapid transit line. Its near Pima Community College,” said Ann Chanecka, Director of Housing and Community Development, highlighting the prime location. “Our goal here is to create high-quality housing in an area that has a lot of services.”

Chanecka also noted that the construction of Sugar Hill on Stone will coincide with renovations at Tucson House, the city’s largest affordable housing facility.

Mayor Romero expressed hope that these ongoing efforts to expand affordable housing in Tucson will ultimately help residents achieve homeownership.

“Providing an affordable home that they can actually afford really stabilizes communities and helps them for the future.”

Construction is set to begin in spring 2025. Upon completion, Tucson House residents will have the option to choose between living in the new development or staying in their current community.