During its recent session, the Cottonwood City Council took a decisive step in addressing the pressing need for affordable housing in the area. The council voted to endorse an application for low-income housing tax credits (LIHTC) to facilitate the construction of additional affordable apartment units as part of the ongoing development of the Verde Plaza Apartments.

The Verde Plaza Apartments, situated on city-owned land at 125 S. 7th Street, are undergoing significant expansion and renovation efforts. The development aims to provide much-needed housing options for low-income individuals and families in the community. With 52 existing units undergoing renovation and 18 new units currently under construction, the project seeks to alleviate the housing strain faced by many residents.

The developer’s application for LIHTC included a proposed ground lease option and a letter of support for a potential $100,000 local gap financing loan. This loan would bolster Verde Plaza’s application for competitive LIHTC awards and help ensure the project’s viability. Notably, this initiative builds upon a similar proposal approved by the council in March 2022, highlighting the ongoing commitment to addressing the area’s housing challenges.

The decision to allocate budget reserves for affordable housing reflects the city council’s recognition of the importance of providing accessible housing options for its residents. With over 65 individuals already expressing interest in the apartments, the demand for affordable housing in Cottonwood is undeniable. Currently, only two low-income housing apartment complexes, Verde Plaza and Mingus Point, serve the city’s population, further emphasizing the necessity of initiatives like this.

Cottonwood, where approximately 25% of households earn 60% or less of the average median household income, faces a significant affordability gap in its housing market. The median household income in the area is $39,437, making it crucial to expand affordable housing options for those in need.

As the Verde Plaza Apartments project progresses, it promises to provide vital support for low-income residents, offering them secure and affordable housing opportunities. The council’s backing of tax credits demonstrates a proactive approach to addressing the community’s housing needs, marking a significant step forward in the city’s ongoing efforts to promote accessibility and equity in housing.