3.5 Housing Element

3.5.1 GOALS

1. Facilitate redevelopment and revitalization of existing housing stock and neighborhoods.
2. Encourage a variety of housing types to accommodate various levels of income and lifestyles.

3.5.2 PURPOSE

The purpose of the Housing Element is to evaluate the condition of the existing residential housing stock, review the quantity of the different types of housing and then to analyze future growth in population, needed housing types, quantities and distribution. Objectives are then provided to accommodate the City's future growth, eliminate substandard dwelling conditions, and improve housing quality, variety, and affordability.

3.5.3 EXISTING CHARACTER

The City of Eloy and its surrounding Planning Area contain a wide variety of housing types in various stages of physical condition; from new development to abandoned and dilapidated structures, and high end single family residences to apartments, manufactured homes and recreational vehicle parks. The US Census identified the following housing data for the City of Eloy is shown below on Table H.1, Existing Housing Data:

By 2025, the Planning Area is estimated to contain a population of approximately 31,400 residents. If approximately 9,000 of these residents are inmates, the net total population is 22,400, which would translate to a total housing unit count of 7,157, utilizing the 3.13 persons per dwelling unit rate identified above. The net, new housing units would total 3,466-nearly doubling the City total in 2010.

If the composition of housing types remained the same as 2010, the following units and acreage would be required to meet the population projection for the year 2025 as shown below in table H.2, Acreage to accommodate future housing:

H.2 Acreage to Accommodate Future Housing

Based on the calculation above, the Planning Area would need to be able to accommodate approximately one section of land to meet the acreage requirements necessary to accommodate the year 2025 population. The Land Use Plan has identified an amount of acreage that significantly exceeds these acreage demands over the next 10 years.

In 2016, the median sales price for new construction and resale homes varies across the City. In Robson Ranch, the price for new construction ranges from $167,000-$289,000. The resale price in this area ranges between $200,000-$350,000. In the Toltec Area, the resale price ranges between $90,000-$140,000. In the Downtown Area, the resale price ranges from $60,000- $90,000.

The Robson Ranch community is age restricted and relies predominately on retirees as its market niche. The ability to afford the average home in the Toltec area would require a job that grosses a minimum of $19,000 annually. The ability to afford the average home in the Downtown area would require a job that grosses a minimum of $12,000 annually.

3.5.4 DISCUSSION

Housing Needs

The existing housing stock in the Downtown exhibits a variety of exterior/interior building conditions. While the area north of Frontier is generally sound, there are scattered areas where the housing is in need of rehabilitation. Many of these properties continue to be bank owned or long term vacancies. In the area south of Frontier, the majority of the area is in need of at least minor rehabilitation, with some areas in need of major reinvestment. The Eloy Housing Authority has constructed several new infill homes on vacant or dilapidated lots to enhance the housing for City residents. The City does not have a formal housing rehabilitation program at the present time

Substandard Housing/Housing Quality

The lack of robust job growth and the after effects of the Great Recession continue to exert debilitating effects on the existing housing stock in Toltec and Downtown Areas. The majority of the existing housing stock in the Downtown Area were constructed during the agricultural boom in the 1940's and 1950's and the development boom (turned bust) in the 1970's. In fact, some of the residential developments that received entitlement during the 1970's, particularly in the Toltec area, have yet to be completed or have been abandoned completely. In the early 2000's the City experienced another residential entitlement and annexation boom, which culminated in the Great Recession of 2008. Over the past several years, there has been a rejuvenation of interest in cleaning up the City and maintaining the housing stock in the Downtown Area.

Housing Variety

There are two significant housing variety gaps that have been identified in the City. The first is the lack of higher-end new single-family construction-some of which has been addressed through the

development of Robson Ranch. However, new upper end or “move up” housing will not locate in the City until more robust employment and escalating salaries locate in the City and/or the surrounding region. The second is the lack of new apartment units. This conclusion is based on declining vacancy rates in existing complexes and the number of prospective tenants on waiting lists.

Housing Attainability

Eloy exhibits very low median household income ($27,477 in 2014 (US Census), and is below the average of both Pinal County ($50,248) and the State of Arizona ($49,928). On the average, Eloy employees receive lower wages due to the fact that the City’s economy primarily relies on agricultural, retail, and manufacturing employment. A significant proportion of the most recent housing development provide opportunities for low/moderate-income households and age-restricted retirement housing (approximately 37 percent of the City’s residents were identified as persons in poverty, compared with rates at 17 and 18 percent in the County and State, respectively.

3.5.5 OBJECTIVES

The objectives outlined below provide the City with direction and guidance to provide the housing needed for Eloy’s existing and future residents.

1. Achieve a high quality, varied and affordable housing stock through a combination of infill projects, new development and rehabilitation of older homes and structures.

2. Promote the development of sound, high quality neighborhoods that provide a variety of housing options and community amenities in an integrated manner.

3. Encourage property managers/property owners to maintain and improve their respective existing housing stock.

4. Pursue federal, state and local grants to address the revitalization needs of existing Downtown neighborhoods.

5. Implement programs that incentivize property owners to maintain, rehabilitate, revitalize and protect the existing stock of affordable homes.

6. Cooperate with the Eloy Housing Authority to provide affordable housing to those residents with a demonstrated need.