City of Tucson Receives State Award for New Modern Affordable Housing
Published on August 15, 2025
The Arizona Department of Housing today awarded El Pueblo Housing Development (EPHD), the City of Tucson’s non-profit development entity, the Urban Development of the Year Housing Hero Award for Milagro on Oracle. The 63-unit affordable housing complex, located in the Thrive in the 05 and the Miracle Mile National Historic District, is EPHD’s first development and the City’s first Low-Income Housing Tax Credit (LIHTC) project in over a decade.
The award was presented during the 2025 Arizona Housing Forum at the JW Marriott Starr Pass in Tucson.
Milagro on Oracle creatively blends new construction with the adaptive reuse of two historic mid-century motor courts, a rarity in modern affordable housing. The development, which opened to residents this year, features a vibrant two-piece public art mural by local artist Jessica Gonzales, inspired by the area’s legacy as a mid-century vehicular gateway into Tucson, anchoring the development in its cultural and historical context.
“Milagro on Oracle represents a turning point for the Mayor and Council and for Tucson—our first Low-Income Housing Tax Credit. Housing isn’t just a privilege, it is a right, and it’s at the heart of a healthy society and a thriving economy,” said Tucson Mayor Regina Romero. “I am deeply grateful to our dedicated Housing and Community Development Department staff whose hard work made this project possible, and to the Arizona Department of Housing for being an incredible partner in bringing Milagro on Oracle to life,” said the Mayor.
Milagro on Oracle provides safe and secure living space in 63 high-quality affordable apartments for individuals aged 55 and older earning 60 percent or less of the Area Median Income (AMI). Of these, 25 units are specifically reserved for formerly unhoused individuals through the City’s Housing First program. Residents benefit from wraparound supportive services, including a full-time on-site case manager. Amenities such as communal green spaces, walking paths, and a multipurpose community room are intended to foster connection among the residents.
Milagro’s strategic location at 2445 N. Oracle Rd. is about half a mile from Tucson’s first Bus Rapid Transit corridor and within the Tucson Norte-Sur Equitable Transit-Oriented Development planning area. Milagro on Oracle aligns with City efforts to foster equitable reinvestment and prevent displacement. By leveraging City-owned land, the project demonstrates how early, proactive planning can support long-term affordability in transit-accessible neighborhoods.
The project’s most distinctive achievement lies in its preservation of two pre-World War 2 historic motor courts, the DeAnza Motel (later the No-Tel Motel), built in 1940, and the Don Motel, built in 1941. A new four-story structure with an elevator was added. Despite the structural and environmental challenges of working with aging structures, the project successfully revitalized historically significant properties and wove them into the fabric of the development while delivering high-quality, modern housing.
Milagro on Oracle transformed history into hope.
“Milagro is Spanish for miracle and that is why we named the project Milagro on Oracle,” said Housing and Community Development Director Ann Chanecka. “HCD staff put together a winning LIHTC application in a very short time and later assembled a first-rate team of community collaborators to create a unique space which provides stability and dignity to senior Tucsonans.”
Before construction began, Housing First, a division of Housing and Community Development, used the units for 10 months as temporary shelter for dozens of people experiencing homelessness as they moved to permanent housing. Through a network of community partners, residents received healthcare, detox support, and move-in kits—demonstrating how vacant properties can provide immediate public good even before redevelopment.
After the City bought the property in 2022, HCD submitted its LIHTC application in just two weeks, a process that typically takes months. This swift effort was made possible through close coordination among City of Tucson departments and partners, including Sabino Community Development Resources, general contractor Gorman & Company, and Poster Mirto McDonald, a Tucson architectural firm. Construction began in July 2023 and was completed by December 2024. By March 2025, the development reached full occupancy, underscoring the urgent demand for affordable housing.
The total development cost was $20.7 million, primarily financed by $18.2 million in LIHTC. Additional funding came from the City of Tucson’s State & Local Fiscal Recovery Funds and HOME-American Rescue Plan loans. Private partners also contributed resources to ensure successful project delivery.
Other project partners included:
- Enterprise/AMEX – Equity Investor
- Chase Bank – Debt Investor
- El Rio Health, Community Medical Services, Old Pueblo Community Services & others – Supportive service partners
- Assistance League of Tucson, Eagles Wings of Grace – Resident support
Other EPHD projects include Sugar Hill on Stone and Amazon Flats, both under construction, and future projects, Tucson House, Speedway and Stone and South 10th Avenue. More information can be found at elpueblohousing.org
Sugar Hill on Stone is part of the City’s 10-point Housing Affordable Strategy for Tucson (HAST), which calls for the creation of more affordable housing.
The Thrive in the 05 Transformation Plan describes an ambitious vision to cultivate sustainable, community-driven, equitable change in the city’s historic northern gateway: The Thrive in the 05 is a safe, affordable, inclusive neighborhood that cultivates sustainable transformation through resiliency, reinvestment, and shared leadership; a community that honors our unique history and cultural identity, where multiple generations share the means to thrive. The Plan was adopted by the City of Tucson Mayor and Council in 2022.