New affordable housing project to transform historic Sugar Hill neighborhood

Where the Bum Steer Nightclub once stood, a new public housing project is coming to Tucson’s historic Sugar Hill neighborhood next year.

The City of Tucson announced the Sugar Hill on Stone project will be made possible, thanks to a $2.5 million low-income housing tax credit (LIHTC) award from the Arizona Department of Housing (ADOH).

The new housing development will offer 66 affordable housing units with one, two, or three bedrooms in three and four-story buildings on North Stone Avenue.

Other amenities will include a playground for children and multi-purpose rooms.

Ann Chanecka, director of Housing and Community Development (HCD) said this is the second tax credit to be allocated to the department under the city’s nonprofit development arm, El Pueblo Housing Development.

“With the allocation of tax credits, we will be working on community engagement and refining the design and our current anticipated construction will be about a year from now,” Chanecka said.

Construction on the 1.3-acre project within walking distance of Mansfield Park and the Donna Liggins community center, is expected to start in June 2025.

The project’s location is also along a future bus rapid transit line and near the downtown campus of Pima Community College.

Chanecka added that the project is part of the Choice Neighborhoods Housing Strategy as part of the Thrive in the 05 Initiative, which looks to address the needs of the Tucson House public housing community and revitalize the downtown Oracle corridor.

The director noted that the new facility could be a potential relocation site for current Tucson House residents.

“We are designing it with Tucson House families in mind, it’s a place that will be really family friendly with a lot of amenities and really will work in relationship to the Tucson House project we are working on,” Chanecka said.

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