Tucson, Pima Industrial Development Authorities Drive $3 Million Investment in Affordable Homeownership
The Tucson Industrial Development Authority and the Pima Industrial Development Authority have teamed up to develop an innovative, public-private housing solution as a rapid response to an unpredictable, and largely unaffordable market.
Through the Pima Tucson Homebuyer’s Solution: Advantage, the IDAs have committed to investing their own capital which is then matched dollar-for-dollar through the PTHS Advantage program, for a $3 million total of down payment assistance for Southern Arizona homebuyers.
So far, the program has resulted in $57 million in loan originations, serving a total of 215 homebuyers. When PTHS Advantage launched in October 2022, the IDA infused $1 million into the program and due to high demand, they have just this week authorized an additional $500,000 to be invested. In total, it is estimated that this program will result in $25,907,500 in total economic impact for our economy, when accounting for retail and services for each home sold.
As Housing Finance Agencies, the Tucson and Pima IDA foster strategic economic and community development through providing financing, access to capital, and affordable housing solutions. With PTHS Advantage, the investment the IDAs have made make it possible to provide a local benefit to people throughout Pima County providing local good.
“Over the years, and without government funding, the IDAs have provided millions of dollars of first mortgage loans through PTHS to Pima County homeowners, many with the added benefit of Single Family Mortgage Credit Certificates,” said Michael Slania of the Pima IDA.
Another partner on the program is Community Investment Corporation.
“We appreciate our long-standing partnership with the Tucson and Pima IDA’s but also give a lot of credit for the program’s success to our local mortgage lenders and brokers. They are essential in connecting homebuyers to this much-needed financial support,” said CIC CEO Danny Knee on the community effort it has taken to address the affordable housing market crisis.
“Volatile markets demand intelligent, creative and dedicated people to navigate. The Tucson and Pima IDAs never cease to impress when confronted with challenges, often dedicating their own resources when required. The community we all share greatly benefits from their laser focus on the mission of financing and providing affordable housing” said Scott Riffle, Managing Director, co-head of housing at Stifel Nicolaus.
PTHS and PTHS Advantage remain some of the most successful homebuyer assistance programs in the country and have recently secured a national award for innovation in single family housing finance from the National Association of Local Housing Finance Agencies.
PTHS Advantage is only one of the innovations emerging from the IDAs. Over the past year and a half, the IDAs provided $600K in grant funding for Essential Workers closing costs, through a collaboration with the City of Tucson and the Tucson Association of REALTORS. Beginning in August of this year, the Tucson and Pima IDAs are teaming up again to introduce a new $25 million bond homebuyer program, PTHS Lighthouse, which will lock in a low interest rate combined with (on average) $14,000 down payment assistance, which will convert into a grant if the homebuyer stays in their home for 3 years.
“As regional Housing Financial Agencies, both Pima and Tucson IDA feel deeply committed to stepping up in a big way for homebuyers in our community. Homebuyers are being hit on all sides financially and programs like PTHS Advantage, the Essential Workers Housing Fund, and soon PTHS Lighthouse, are examples of the rapid innovation we are doing to keep housing affordable and accessible. In addition to our own capital, we are proud to have successfully engaged private investors, the City of Tucson, foundations, and corporations to help with the cause. With a challenge as daunting as affordable housing, it takes a village.” said Dre Thompson, CEO of the Tucson IDA.
