Arizona's Housing Lifeline: $7.7M Grant to Build 292 Affordable Homes

SAN FRANCISCO, CA – July 07, 2026 – The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) announced a significant investment into Arizona's housing infrastructure today, awarding $7.7 million in Affordable Housing Program (AHP) General Fund grants. The funding, which marks a nearly $1 million increase over the previous year, will directly support five developments set to create 292 urgently needed affordable housing units across the state.

The grants target some of Arizona’s most vulnerable populations, providing stable housing for seniors, low-income families, tribal communities, people with disabilities, and individuals transitioning out of homelessness. The new projects will be located in Mesa, Camp Verde, Prescott Valley, and Yuma, reflecting a strategic approach to addressing housing needs in both urban and rural communities.

“Addressing the critical need for affordable housing requires strategic investments and strong local partnerships,” said Winthrop Watson, interim president and CEO of FHLBank San Francisco. “By working with our member financial institutions and housing developers, we are helping expand the supply of affordable housing that will create lasting benefits for individuals, families, and communities across Arizona.”

Tackling a Statewide Crisis

This infusion of capital arrives at a critical moment for Arizona. According to the National Low Income Housing Coalition, the state faces a staggering deficit of over 130,000 affordable and available rental units for its extremely low-income households. This gap forces many families to spend a disproportionate amount of their income on housing, with research showing that nearly half of all Arizona renters were cost-burdened in 2022. The crisis is compounded by soaring costs, with average rents increasing by 72% between 2010 and 2022.

The five projects funded by the 2026 AHP grants are designed to provide direct relief and tailored solutions to specific community needs:

• Mesa: A $630,000 grant will support John 1334 Ministries’ Eden Village of Arizona, a project creating 21 permanent supportive tiny homes for formerly unhoused individuals with disabilities.
• Camp Verde: The Yavapai-Apache Nation Tribal Housing will receive a $1.65 million grant to construct Yavapai Apache Homes X, a development of 37 single-family homes for low-income families on tribal trust land.
• Prescott Valley: Two projects will address the need for senior housing in this rural community. County Corp Housing’s Desert Bloom Place will create 60 affordable homes for seniors with an $1.8 million grant, while USA Housing, Inc.’s Sungate Villa III Senior Community will add 54 new rental homes for residents 62 and older with a $1.62 million grant.
• Yuma: Crossroads Mission’s Center of Hope will receive a $2 million grant to construct 120 units of transitional housing for very low- and extremely low-income individuals who were previously unhoused.

The Power of a Collaborative Model

The AHP's success lies in its unique partnership-based structure. FHLBank San Francisco, a cooperative owned by its member financial institutions, does not award grants directly to developers. Instead, it works through its members—local banks, credit unions, and community development financial institutions—who partner with non-profit developers to apply for funding in a highly competitive annual process. This model leverages the local expertise and financial stewardship of member institutions to ensure projects are viable, well-managed, and responsive to community needs.

The 2026 Arizona grants were facilitated by partnerships with Gateway Commercial Bank, Western Alliance Bank, Raza Development Fund, and OneAZ Credit Union. This collaborative ecosystem is essential for navigating the complexities of affordable housing development, from initial planning and site acquisition to securing the layered financing required to bring a project to fruition.

Mike Boden, president and CEO of OneAZ Credit Union, commented on the collaboration for the Yuma project. “At OneAZ Credit Union, we are proud to deliver a $2 million AHP grant to the Crossroads Mission that will help boost the supply of affordable housing in Arizona with the Center for Hope project,” he stated. “The redevelopment of this site that was once a shelter has required the support of many local stakeholders and funders, and we are pleased that we could work with the Federal Home Loan Bank of San Francisco to award this funding that is helping move the project forward and will support long-term stability and self-sufficiency for its residents.”

A Legacy of Building Communities

For over three decades, FHLBank San Francisco has been a quiet but formidable force in regional housing. Since 1990, the Bank has awarded $1.48 billion in AHP grants, helping to finance the construction, preservation, or purchase of nearly 160,000 affordable homes across Arizona, California, and Nevada. Collectively, the 11 FHLBanks across the country represent one of the largest sources of private sector grants for affordable housing in the United States.

The impact of these investments extends far beyond providing roofs over heads. According to housing economists, the development of affordable housing acts as a powerful local economic engine. The construction process creates jobs, drives spending at local suppliers and businesses, and generates new tax revenues for municipalities. Once occupied, residents of affordable housing have more disposable income to spend within their communities, further bolstering local economies.

This commitment to community investment is central to the Bank's mission. By law, it dedicates at least 10% of its prior year's net income to fund the AHP and related community investment programs. In 2026, FHLBank San Francisco demonstrated its deepening commitment by doubling its voluntary contribution, further expanding its capacity to support projects that create opportunity and foster economic vitality. These developments represent more than just new buildings; they are investments in community stability and economic resilience for Arizona's future.