City of Tucson Breaks Ground for 59 New Affordable Housing Apartments

Published on April 17, 2026

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The City of Tucson, El Pueblo Housing Development (EPHD), and Gorman & Company broke ground today for Amazon Flats, a 59-unit affordable housing community featuring one-bedroom apartments that will expand access to quality housing in Tucson. This milestone marks another major step in investing in the historic Miracle Mile corridor, celebrated alongside City of Tucson partners, community leaders, and neighbors.

Amazon Flats, at 1135 W. Miracle Mile, is the second project on the site. The first project was the transformation of the Amazon Motel into a 30-unit permanent supportive housing project which opened in September 2025. Located adjacent to the former Amazon Motel, Amazon Flats will be a newly constructed building that continues the site’s redevelopment.

Construction of the $24.4 million development is expected to be completed in the fall of 2027.

“Amazon Flats is proof of what we can accomplish through collaboration and a shared vision for housing stability,” said Mayor Regina Romero. “This project will change lives by providing safe, stable homes and the supportive services people need to rebuild and thrive. These are the type of investments that help, not just an individual or a family, but they address critical housing gaps, strengthen our workforce, support local jobs, and build a more resilient economy.”

Amazon Flats will serve households earning up to 50% of the Area Median Income (AMI) and is guaranteed affordability for 50 years. The new residences will have in-unit washers and dryers and free wi-fi, and there will be on-site services, community spaces, a public plaza, basketball halfcourt, and a pet yard.

Additionally, the Arts Foundation for Tucson and Southern Arizona will coordinate the creation and installation of murals and mosaics on the exterior and an interior ceiling sculpture. 

Located on the historic Miracle Mile corridor, across the street from Pima County’s new Northwest Service center which houses a health clinic and employment assistance services, Amazon Flats will help spur economic growth for the neighborhood and reactivate unused space. The location is within the Thrive in the 05, a community reinvestment initiative managed by the City of Tucson’s Housing and Community Development Department (HCD) since 2018.

“The Department of Housing and Community Development continues with its commitment to Tucson residents to build high quality affordable housing in the midst of the housing crisis here and across the country,” said HCD Director Ann Chanecka. “We will maintain the momentum created from this groundbreaking for Amazon Flats to launch other much-needed HCD affordable housing developments in collaboration with our neighbors and partners from other government jurisdictions and the private sector.”

Amazon Flats is phase III of the HUD Choice Neighborhood Implementation Housing Strategy in the Thrive in the 05 executed by HCD. In 2023, HCD and the City received a $50 million Choice Neighborhoods Implementation grant from the U.S. Department of Housing and Urban Development. The eight-year grant is centered on the complete rehabilitation of Tucson House preserving this critical affordable housing for people over 55, as well as services for Tucson House residents, additional housing investments, and neighborhood improvements in the Thrive in the 05.

Amazon Motel, which was completed in September 2025, was a rehabilitation and conversion of a former motel into 30 studio apartments of permanent supportive housing for individuals experiencing homelessness. These units are targeted at households earning up to 30% of the AMI, with no time limit on tenancy to ensure residents can remain housed while accessing the supportive services they need until they are ready to transition to independent living.

Amazon Flats will be co-developed by the City’s non-profit arm, EPHD, and Gorman & Company, a national leader in creating and managing affordable housing developments across the country.

“Gorman & Company is honored to continue our partnership with the City of Tucson and El Pueblo Housing Development on Amazon Flats and to be part of the reinvestment in the Miracle Mile corridor,” said Sally Schwenn, Arizona Market President, Gorman & Company. “This groundbreaking represents our collaborative commitment to build vibrant and sustainable affordable housing to serve Tucson residents for the long term.”

EPHD focuses on the building and rehabilitation of housing to provide affordable homes to the people of Tucson making up to 120% of the AMI with the priority on housing for low-income residents. EPHD developed the award-winning Milagro on Oracle, a 63-unit senior housing development on North Oracle Road. Milagro on Oracle, which is a mix of a new building and two repurposed motor motels, opened in January 2025.

Gorman & Company, which has its Arizona office in Phoenix, co-developed with EPHD Sugar Hill on Stone, 66 units of affordable housing for individuals and families. Sugar Hill on Stone is under construction and is expected to be completed by the end of 2026.

Poster Mirto McDonald (PMM), the Tucson architectural firm, designed Amazon Flats.

Project partnerships include City of Tucson and EPHD; co-developer and Choice Implementation Entity Gorman & Company; Tucson Architects PMM, Arizona Department of Housing; federal Department of Housing and Urban Development; Freddie Mac; Vectra Bank; Boston Financial; and the Arts Foundation.

 

 

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