Notice of Finding: Not Significant Impact and Intent to Release Funds

Published on February 25, 2025

These notices shall satisfy two separate but related procedural requirements for activities to be undertaken by the City of Tucson Housing & Community Development Department.

On or about March 4, 2025, the City of Tucson Housing & Community Development Department (COT-HCDD) will submit a request to the U.S. Department of Housing and Urban Development (HUD) for the release of Choice Neighborhoods Initiative funds, under Section 24 of the U.S. Housing Act of 1937, Consolidated Appropriations Act, 2022 (Public Law 117-103) and Consolidated Appropriations Act, 2023 (Public Law 117-328), and HOME Investment Partnerships Program (HOME) funds, under Title II of the Cranston-Gonzalez Act of 1990, as amended, and COT-HCDD will also authorize the City of Tucson Public Housing Authority to submit a request to the U.S. Department of Housing and Urban Development (HUD), Office of Public and Indian Housing for the release of Project-Based Vouchers, under the Housing Choice Voucher (HCV) Program as authorized by the Quality Housing and Work Responsibility Act of 1998, the Fiscal Year 2001 Appropriations Act, the Housing and Economic Recovery Act of 2008, and the Housing Opportunity Through Modernization Act of 2016 (HOTMA), under the U.S. Housing Act of 1937, as amended, to undertake a project known as the Tucson House Rehabilitation Project. The project consists of real estate asset repositioning through the US Department of Housing and Urban Development’s Section 18 Disposition program to undertake renovations and capital improvements at the existing Tucson House Apartments (Tucson House), the City of Tucson’s largest public housing site and a contributing property to the Miracle Mile Historic District. Through the Section 18 disposition, the Tucson House will be transferred via a long-term ground lease to Thrive Tucson House, LLC, an Arizona limited liability company controlled by the City. The Tucson House will be removed from the City’s public housing portfolio and current public housing residents will be transitioned to the Tucson Public Housing Authority’s (PHA) Housing Choice Voucher program and relocated, temporarily or permanently, to other affordable housing units. Once improvements are completed, the updated complex will provide housing through the allocation of Project Based Vouchers (PBVs) through the Tucson PHA. Supportive services including health services, workforce navigation, and recreation programming will be offered on-site. The proposed action does not classify as a Rental Assistance Demonstration project. No demolition of existing structures is planned. Interior demolition for renovations will occur. Minor outdoor demolition is planned for grounds improvements. No expansion of the existing structural footprint or exterior façade is planned. The project will be undertaken in accordance with the Secretary of the Interior’s Standards for Rehabilitation and will not damage historic material.

The City of Tucson and its co-developer and future site manager, Gorman & Company, Inc., will transform and renovate the existing 376,760 square foot, 17-story, 408-unit complex into a 358-unit affordable housing complex with adjacent outdoor spaces, on an approximate 5.40- acre site. The apartment units will be reconfigured, including relocating all residential units to the second floor and above, converting existing studio apartments into 1- and 2-bedroom units, creating additional accessible apartments, and creating new amenity, maintenance, storage, and office spaces. The future unit configuration will consist of 60 studios, 277 1-bedroom apartments, and 21 2-bedroom apartments. Additionally, 23 replacement PBVs will be issued for use at other affordable housing communities in Tucson.

The proposed action is subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act. The project will be undertaken in multiple phases and will extend to 30 months, beginning in the 2nd quarter, 2025.

Total Estimated Project Cost: $236,905,218. Estimated project funding: $26,400,000 in Choice Neighborhoods Initiative funds, grant number AZ9E004CNG122, $1,000,000 in HOME Investment Partnerships Program funds, grant number M-21-DP-04-0229, through the City of Tucson Housing & Community Development Department, and an estimated $99,430,560 of funding for 358 PBVs over 20 years, entitlement number AZ004, through the City of Tucson Public Housing Authority. Additional project funding: Low-Income Housing Tax Credits and State
Housing Trust Funds through the Arizona Department of Housing, Historic Tax Credits through the National Park Service, General Funds through the City of Tucson, and gap funding through Pima County.

The project is located at 1475 & 1501 North Oracle Rd and 1375 North 13th Ave, Tucson, Pima County, Arizona, 85705, Assessor Parcel Numbers 115-18-0220 & 115-18-0250. The project is located on the west side of North Oracle Rd, northwest of the West Drachman St and North Main Ave/North Oracle Rd intersection, approximately 0.31-miles east of Interstate 10 in the Barrio Blue Moon Neighborhood Association and the Miracle Mile Historic District. The property descriptions are: PTN N409.17' S619.17' W560.7' E650.7' NE4 SE4 4.33 AC SEC 2-14-13 and S210' OF E201.7' OF W871' OF NE4 SE4 S .98 AC P 31-2-14-13.

FINDING OF NO SIGNIFICANT IMPACT

The City of Tucson Housing & Community Development Department has determined the project will have no significant impact on the human environment. Therefore, an Environmental Impact Statement under the National Environmental Policy Act of 1969 (NEPA) is not required. Additional project information is contained in the Environmental Review Record (ERR) on file at the City of Tucson Housing & Community Development Department, 310 North Commerce Park Loop, Tucson, Arizona 85745 and may be examined or copied weekdays 8 AM to 4 PM, or the ERR can be accessed online at the following website: https://www.tucsonaz.gov/Departments/Housing-and-Community-Development/Documents/Environmental-Review.

PUBLIC COMMENTS

Any individual, group, or agency may submit written comments on the ERR to the City of Tucson Housing & Community Development Department, PO Box 27210, Tucson, Arizona 85726 or by e-mail to rolanda.mazeika@tucsonaz.gov. All comments received by March 3, 2025, will be considered by the City of Tucson Housing & Community Development Department prior to authorizing submission of a request for release of funds. Comments should specify which Notice they are addressing.

ENVIRONMENTAL CERTIFICATION

The City of Tucson Housing & Community Development Department certifies to HUD that Ann Chanecka in her capacity as Director of the City of Tucson, Housing & Community Development Department consents to accept the jurisdiction of the Federal Courts if an action is brought to enforce responsibilities in relation to the environmental review process and that these responsibilities have been satisfied. HUD’s approval of the certification satisfies its responsibilities under NEPA and related laws and authorities and allows the City of Tucson to use Program funds.

OBJECTIONS TO RELEASE FUNDS

HUD will accept objections to its release of funds and the City of Tucson Housing & Community Development Department’s certification for a period of fifteen days following the anticipated submission date or its actual receipt of the request (whichever is later) only if they are on one of the following bases: (a) the certification was not executed by the Certifying Officer of the City of Tucson Housing & Community Development Department; (b) the City of Tucson Housing & Community Development Department has omitted a step or failed to make a decision or finding
required by HUD regulations at 24 CFR part 58; (c) the grant recipient or other participants in the development process have committed funds, incurred costs or undertaken activities not authorized by 24 CFR Part 58 before approval of a release of funds by HUD; or (d) another Federal agency acting pursuant to 40 CFR Part 1504 has submitted a written finding that the project is unsatisfactory from the standpoint of environmental quality. Objections must be prepared and submitted in accordance with the required procedures (24 CFR Part 58, Sec. 58.76) and shall be addressed to HUD Office of Public Housing, Phoenix Field Office via e-mail to William.M.Rhodes@hud.gov and HUD San Francisco Regional Office at One Sansome Street, Suite 1200, San Francisco, CA 94104 or via e-mail to rrofsfro@hud.gov. Potential objectors should contact the HUD Phoenix Field Office or San Francisco Regional Office to verify the actual last day of the objection period.

Ann Chanecka, Director, City of Tucson, Housing & Community Development Department

If you require oral interpretation in a language other than English, please call (520) 791-4171. Si necesita interpretación oral en un idioma que no sea inglés, por favor llame al (520) 791-4171.