Innovative Partnership Brings 96 New Affordable Family Housing Units to Phoenix

Nearly 100 families in Phoenix have a new, affordable place to call home. UMOM New Day Centers, the City of Phoenix, Maricopa County, the Phoenix IDA and its partners are proud to celebrate the grand opening of La Esperanza Terrace. This landmark affordable housing development was made possible through an innovative, first-of-its-kind agreement between the Isaac School District, the Phoenix IDA, UMOM and the City of Phoenix. This 96-unit development will provide affordable housing for low-income families for decades to come. 

The property is built on land previously owned by the Isaac School District. The City of Phoenix purchased the surplus land from the district to develop affordable housing that will have a lasting impact on the community. At the core of turning this land into affordable housing is a deed restriction called a Land Use Restrictive Agreement (LURA), which the City placed on the property prior to resale, requiring it to remain dedicated to affordable housing for a minimum of 40 years. 

“Creating and preserving affordable housing is a top priority for the City of Phoenix, and La Esperanza Terrace is a perfect example of what can be accomplished through community collaboration,” said Mayor Kate Gallego. “We will continue to take an all-hands-on-deck approach because everyone deserves a safe place to call home, and we won’t rest until that becomes a reality.”

"The opening of La Esperanza Terrace is a significant milestone for Phoenix,” District 4 Councilwoman Laura Pastor said. “It's more than just affordable housing—it's a commitment to ensuring our families have the resources they need to thrive. By working together with our partners, we are transforming vacant land into a foundation for opportunity, stability, and growth for generations to come."

“With rising housing costs and a record-breaking number of eviction cases filed in 2024, it is clear that Maricopa County families are in dire need of more affordable rental options that don’t break the bank,” said Supervisor Steve Gallardo, Maricopa Board of Supervisors, District 5. “This project is taking a dirt lot that used to be a preschool site and turning it into a vibrant complex where residents can easily access helpful services, work opportunities, and community support.”

The 96-unit family development at 3101 W. McDowell Rd. provides one, two, and three-bedroom units to low-income families earning less than $62,000. Amenities include a community room, computer lab, fitness center, playground and outdoor gathering areas. Computer training, financial literacy resources and job-seeking opportunities are also available to residents. Families will begin moving in next month.

"Phoenix families need access to affordable, permanent housing. That's why UMOM aims to complete a new affordable housing community each year,” said Jackson Fonder, CEO of UMOM New Day Centers. “Every unit built makes a difference. We're proud to be part of collaborative builds like this to help ensure that the most vulnerable families in our community have a safe, stable place to call home."

Leveraging unique partnerships like this is one of the initiatives in the Housing Phoenix Plan, which aims to create a stronger and more vibrant Phoenix through increased housing options for residents at all income levels and family sizes. La Esperanza Terrace is one of three partnerships with local school districts, which will create more than 300 new affordable housing units through similar initiatives. 

"Addressing the critical need for affordable housing in our community is one of our top priorities," said Titus Mathew, City of Phoenix Housing Director. “We’re creating a model that expands housing options for Phoenix families in an impactful way. These projects demonstrate our dedication to ensuring everyone has access to quality, stable housing and we are grateful for the support of our partners in making this project possible.” 

The project is funded by several partners including $1 million in City HOME funds, $4 million from the State Housing Trust Fund through the Arizona Department of Housing (ADOH) and $6 million from Maricopa County. The partnership included the Isaac School District, City of Phoenix, Phoenix Industrial Development Authority (Phoenix IDA), and UMOM.