The City of Tucson has broken ground on Sugar Hill on Stone, a 66-unit affordable housing project located at 1910 N. Stone Avenue in the historic Sugar Hill neighborhood. The development, built on the former Bum Steer site, is part of Phase II of the HUD Choice Neighborhoods Implementation (CNI) Housing Strategy within the Thrive in the 05 revitalization area.
Community Vision and Housing Impact
Sugar Hill on Stone reflects the neighborhood’s long-term vision to bring investment into a historically disenfranchised area. The project includes 37 units for residents relocating from Tucson House and 29 additional units for households earning up to 50% of the Area Median Income (AMI). All homes will remain affordable for at least 50 years, ensuring long-term stability.
Design and Amenities
The development will offer one-, two-, and three-bedroom apartments across three- and four-story buildings. Resident amenities include:
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In-unit washer and dryer, dishwasher, and free Wi-Fi
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Playground and BBQ area
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Rooftop solar and solar-covered parking
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Secure bike parking
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Multipurpose and community rooms for resident services
A large mural, co-designed with neighborhood residents, will further enhance community identity and sense of place.
Development Partners and Funding
Gorman & Company and El Pueblo Housing Development are co-developers alongside the City of Tucson. The project is supported by Low-Income Housing Tax Credits (LIHTC), generating more than $21 million in private investment, awarded through the Arizona Department of Housing. The City acquired the property in 2023.
Sugar Hill on Stone follows the City’s $50 million CNI grant awarded in 2023 by HUD, which aims to revitalize housing and neighborhoods in Thrive in the 05. Other projects underway include Amazon Flats on West Miracle Mile and a planned development at Stone and Speedway. The trend is for more afforable housing across many of the states in the USA.
Sugar Hill on Stone – Project Factsheet
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Location: 1910 N. Stone Avenue, Sugar Hill, Tucson, Arizona
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Neighborhood Initiative: Thrive in the 05 / HUD Choice Neighborhoods Implementation (CNI)
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Total Units: 66 affordable apartments
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Breakdown: 37 units for Tucson House relocation + 29 affordable units for households earning up to 50% AMI
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Affordability Term: Minimum 50 years
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Unit Types: One-, two-, and three-bedroom apartments
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Structures: Three- and four-story buildings across 1.38 acres
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Amenities: In-unit washer & dryer, dishwasher, free Wi-Fi, playground, BBQ area, rooftop solar, solar-covered parking, secure bike parking, community/multipurpose rooms
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Community Features: Prominent neighborhood mural co-designed with residents
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Developers: City of Tucson, Gorman & Company, El Pueblo Housing Development
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Funding: Low-Income Housing Tax Credits (LIHTC) generating $21M in private investment + HUD $50M CNI grant (2023)
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Groundbreaking: 2025
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Expected Completion: October 2026