The Tucson City Council approved a $100 million affordable housing bond program called LIGHTHOUSE 3.0 on Tuesday, targeting first-time homebuyers in Pima County with a planned launch in 2024, Mayor Regina Romero and council members said. The program aims to address rising housing interest rates and provide downpayment assistance, building on previous successful bonds that supported minority families and single-parent households.
The $100 million LIGHTHOUSE 3.0 bond program approved Tuesday by the Tucson City Council follows two earlier successful affordable housing initiatives, LIGHTHOUSE and LIGHTHOUSE 2.0, each of which originated $25 million in bonds that sold out in less than a month, officials said. According to Mayor Regina Romero and council members, the new program is designed to address rising housing interest rates that have affected first-time homebuyers nationwide, with a focus on Pima County residents. The program will provide downpayment assistance that can convert to a grant after lien origination, targeting minority families and single-parent households, sources confirmed.
Previous LIGHTHOUSE programs reinvested more than $11.9 million into the local economy through the Pima-Tucson Housing Innovation Hub, averaging $127,000 per home sold, records show.
The Tucson Industrial Development Authority (IDA) requested the bond program, which will be launched in 2024 in partnership with approved lenders throughout Pima County, according to a post on the Tucson IDA website. This reinvestment supports the city’s goal of expanding homeownership opportunities for underserved populations amid ongoing market challenges.
In related efforts, the U.S. Department of Housing and Urban Development (HUD) awarded Tucson a $50 million Choice Neighborhoods grant to fund renovations at Tucson House, the city’s largest public housing site with 408 units on North Oracle Road. The grant supports the Thrive in the ’05 initiative, which aims to create 550 new or rehabilitated housing units in the 85705 ZIP Code area, according to HUD and city officials. Plans include converting Tucson House into a mixed-income community for residents aged 55 and older, with on-site services to support quality of life.
The city recently approved a development agreement with Gorman & Company as co-developer for Tucson House and other sites, including a former restaurant on Stone Avenue and the Amazon Motel on Miracle Mile. The initial renovation budget for Tucson House is estimated at $67 million, although current costs and project scope have not been finalized, city records indicate. These developments are part of a broader strategy to create mixed-income communities in high-need areas.
The LIGHTHOUSE 3.0 program builds on $50 million disbursed from the previous LIGHTHOUSE bonds issued by the Tucson and Pima IDAs, according to Tucson IDA officials. The program has attracted significant attention from homebuyers and lenders, as evidenced by the rapid sale of prior bonds. The initiative continues to emphasize equity and access for underserved groups affected by housing market shocks.
The City of Tucson’s 2022-23 Adopted Budget highlights ongoing investments in housing affordability and homelessness programs, including increased funding for the Housing First initiative and neighborhood litter cleanups, supported by state and federal funds. In addition to housing efforts, voters approved a $225 million bond in November 2018 for parks, playgrounds, sports fields, pools, and greenway connections. A half-cent sales tax extension passed in May is expected to generate $740 million for neighborhood street and safety improvements, records show.
Together, these programs and funding efforts reflect Tucson’s coordinated approach to sustainable growth, equity, risk management, and resilience, according to city budget documents. The LIGHTHOUSE 3.0 bond program is expected to further extend affordable housing opportunities across Pima County when it launches next year.
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