PHOENIX — A new bill looks to tackle two top Valley issues in one, by clearing the way for school districts with closed campuses to partner with affordable housing developers.
As school systems across Arizona close school doors due to declining enrollment, state Senator John Kavanagh wants to allow those buildings to serve a new purpose as workforce or affordable housing.
"You have a lot of districts with empty school buildings just sitting there. This comes at a time when we have an affordable housing crisis,” Kavanagh said. “A win-win that the school would make some money by selling or leasing the land and the private company would make some money by building the houses. They could be converting existing school buildings, or they could be building all new houses.”
A similar example now serves seniors in Globe. The Hill Street School closed two decades ago and was sold to a private owner. Last year, the building was reopened by Gorman & Company as a 55 and up affordable housing apartment complex.
However, unlike the Hill Street School, the bill would allow for school districts to directly enter into a public-private partnership for the lease or sale of their buildings to convert the space or tear it down and build housing.
Kavanagh said any partnership still has to pass a two-thirds majority on the governing board and comply with all local zoning laws.
"So no one's going to slip in, you know, a six-story apartment in a one-story neighborhood,” Kavanagh said.
Mark Stapp, ASU Director of the Master's in Real Estate Development, said he likes the idea of the bill. Still, developers face costly challenges in housing conversions.
“You have mechanical systems, you have plumbing systems, you have electrical systems. They have different load requirements, and then you have these other code requirements,” Stapp said. "I think that school districts do have to be careful when they are considering what schools to close and how they're going to treat those closures."
