Phoenix approves Garfield Terrace Phase 2 groundbreaking, expands senior housing 120 units total
PHOENIX, ARIZONA — September 23, 2025

Phoenix approves Garfield Terrace Phase 2 groundbreaking, expands senior housing 120 units total

Penrose opened 60 senior affordable housing units with full occupancy and broke ground on 60 more as part of a successful public-private partnership model in Phoenix.

Penrose Opens 60 Fully Leased Senior Affordable Units in Phoenix; Launches Phase 2 Groundbreaking as Model for Public-Private Housing Collaboration

On September 23, 2025, Penrose held a combined grand opening and groundbreaking ceremony for Garfield Terrace, a 120-unit affordable senior housing development in Phoenix that officials hailed as a template for replicable public-private partnership in the nation's affordable housing crisis. Phase 1, comprising 60 units for seniors aged 55+ with incomes between 30 and 60% AMI, achieved full occupancy within months of opening. Phase 2, an additional 60 units, broke ground the same day with anticipated completion and occupancy in 2026.

The event, held at the completed Phase 1 site, drew Arizona state housing officials, City of Phoenix housing leadership, nonprofit service partners, Bank of America representatives, and developers from across the country to witness what speakers repeatedly characterized as a rare success story in affordable housing delivery. The project's complexity—requiring five to ten separate funding sources and coordination across public and private sectors—underscores both the challenge and the necessity of such partnerships as housing shortages affect seniors, the fastest-growing segment of Arizona's homeless population.

Key Speeches

"Garfield Terrace really is a people-first place and it's really a shining example of how we can improve the lives of people through public-private partnership. It's often said that affordable housing is a team sport. There's lots of hard work that goes into it, lots of problem solving." — Shannon Hawkfaker, Regional Vice President, Penrose

Hawkfaker opened the program by acknowledging the internal Penrose teams—Brad Weining and Michael Kadman—who managed "spreadsheets and funding applications" over several years, as well as Wal Construction's field crews who began work before sunrise. She also thanked Andy Shabru from Governor Katie Hobbs' office, property management from Dunlap and McGee, and the Arizona Department of Housing (ADOH) as "a high-performing agency that really exemplifies professionalism and positive outcomes even in the face of adversity."

Ruby Dylan Williams, director of the Arizona Department of Housing, spoke from deep personal memory. She recalled visiting Garfield Terrace as a junior staffer in 2010 when it was slated for historic rehabilitation and low-income housing tax credit conversion, saying she was astonished at the vision. Now, fifteen years later, seeing the Penrose development come to life moved her profoundly.

"These are the moments that are so meaningful to me being a developer from the private sector coming into government service. I've kind of seen all the facets. And so this just makes me so proud when I can come back to a project from 15 years ago and see what's happening." — Ruby Dylan Williams, Director, Arizona Department of Housing

Williams credited Governor Katie Hobbs' "historical investment in the state's housing trust fund" and "her support of the progressive state low-income housing tax credit," which have created "financing tools of an unprecedented nature" and opened possibilities for developers that "the days are long gone" where developers could rely solely on conventional financing. She emphasized the shift: developers now require "between five and ten sources to make sure a deal comes to life."

Titus Matthew, director of the City of Phoenix Housing Department, positioned Garfield Terrace as emblematic of the city's affordable housing agenda under Mayor Kate Gallego and Kesha Hodge Washington (whose district includes the property). Matthew broke down the city's specific contributions: $3 million in HOME funds enabling about 33 units for households at 50% AMI and below, plus 25 project-based vouchers.

"The fifth largest city in the U.S. is under-represented in terms of number of vouchers we have. Currently we have 7,500. I'm hoping, I'm dreaming, optimistic that one day we'll have 25,000 vouchers for Phoenix." — Titus Matthew, Director, City of Phoenix Housing Department

Matthew called on attendees to lobby the federal government to increase Phoenix's voucher allocation and protect HOME funds, noting those resources "are on the chopping block." He credited Senator Geo (likely Arizona State Senator) for drafting a bill in collaboration with other state legislators and U.S. Congress members to expand Phoenix's federal support.

"One of the things I harp about and this is big to me is the supportive services component and the partnership of the two nonprofits to partner here on providing supportive services is a big deal. One of the things that we're working with our mayor and council is to figure out how do we do more supportive services in our traditional public housing sites and private affordable housing developments because part of the challenges for my mission is to keep people housed right." — Titus Matthew, Director, City of Phoenix Housing Department

Matthew also announced that the City of Phoenix Housing Department would present the housing trust fund to the city council at its November 18 policy meeting, seeking ongoing funding for gap financing to developers building multifamily affordable housing.

Jackson, vice president of housing initiatives for the Greater Phoenix Urban League, introduced Maria, a HUD-certified housing counselor assigned to the property, and described the league's 80-year history serving Metro Phoenix. Jackson stressed the mounting calls for rental assistance—people unable to pay rent, homeowners facing foreclosure, the unhoused population—and positioned Penrose, Butler Housing, and the league's mission as aligned.

"We believe that what Penrose is doing is what is needed in our community." — Jackson, Vice President of Housing Initiatives, Greater Phoenix Urban League

Mary Moore, market executive for Phoenix at Bank of America, framed the project as transcending construction.

"It's really creating a commitment to our creating opportunity, stability, and hope for all the families who really deserve a home and a place to call home." — Mary Moore, Market Executive for Phoenix, Bank of America

Moore noted that Bank of America's community development team has financed over $614 million in debt and equity investments in Arizona since 2017, delivering over 1,500 units across 16 low-income housing tax credit projects. She credited the ripple effects of public-private collaboration in meeting Phoenix's housing needs.

In closing remarks, an unnamed Penrose senior vice president of development—described as the company's "closer"—articulated a personal philosophy framing housing as a human right:

"I believe that housing is a basic human right and in these times when there's so much division out there... I wonder if we could find a place to come together around creating more housing for people that need it. However we get there from whatever political perspective... I'm not a Democrat. I'm not a Republican. I'm a member of the housing party." — Senior Vice President of Development, Penrose

He stressed that housing development "takes a lot of hard work. Cooperation. Political will. But you know what? It really takes a lot, lots and lots of money." He called on attendees to remain "constantly in touch with our politicians, our elected officials, telling them how important this work is so that we make sure that these resources will continue and not be cut."

Timeline

Project Details

Funding and Capital Stack

The project exemplifies the multi-source financing approach now standard in affordable housing:

Supportive Services Model

Both Phase 1 and Phase 2 integrate on-site supportive services delivered by two established Phoenix nonprofits:

  1. Greater Phoenix Urban League: Housing counseling (HUD-certified), employment assistance, basic health care access, education, case management
  2. Central Arizona Shelter Services: Basic needs support, health care navigation, services to prevent eviction and enable aging in place

These services are funded partly through congressional appropriation channeled via U.S. Senator Geo's office to the Greater Phoenix Urban League. Penrose also maintains an in-house supportive services team but prioritizes partnerships with locally connected organizations to ensure residents can "age in place" and avoid homelessness.

Vote Breakdown

No votes were taken at this event. This was a ceremonial grand opening and groundbreaking, not a public policy or legislative proceeding.

Outcome & Next Steps

Immediate outcome: Phase 1 of Garfield Terrace is fully operational with all 60 units leased. Phase 2 groundbreaking was completed September 23, 2025.

Timeline for Phase 2: Construction underway; occupancy expected 2026.

City housing trust fund: Titus Matthew announced that the City of Phoenix Housing Department will present the housing trust fund—passed by the mayor and council in summer 2025—to the city council at a November 18 policy meeting. Discussion will center on sustained, recurring funding mechanisms for the trust fund and prioritization of gap-financing grants to developers for multifamily affordable housing.

Federal advocacy: Multiple speakers (Matthew, the unnamed Penrose senior VP) explicitly called on attendees—developers, advocates, service providers, city staff—to lobby federal elected officials for:

Replication: Hawkfaker stated Garfield Terrace is "the first of many housing communities" Penrose plans in Phoenix and expressed ambition to replicate this model across additional Arizona sites and markets.

Controversies & Context

No formal controversies were raised during this event. The tone was uniformly celebratory and cooperative. However, underlying tensions and challenges were frankly acknowledged:

  1. Capital stack complexity: Ruby Dylan Williams and Titus Matthew both emphasized that affordable housing now requires 5–10 separate funding sources, a dramatic shift from the conventional financing model of a decade ago. This complexity creates barriers to entry and slows production.

  2. Chronic voucher shortage: Phoenix, the fifth-largest U.S. city, has only 7,500 Housing Choice Vouchers—inadequate for its population and need. Matthew's aspirational goal of 25,000 underscores the federal underinvestment.

  3. HOME fund precarity: Both Matthew and the Penrose senior VP warned that HOME funds—critical gap financing—are "on the chopping block" in federal budget discussions, threatening future projects' viability.

  4. Fastest-growing homeless segment: Speakers emphasized that seniors are the fastest-growing demographic among Arizona's homeless population, making age-targeted affordable housing urgent.

  5. Service underfunding: Titus Matthew highlighted the persistent shortfall in supportive services funding and called for innovation in integrating services into public housing and private affordable development.

  6. Political will dependency: The entire development depended on political will at federal, state, and local levels. Governor Katie Hobbs' housing trust fund and tax credit expansion, the City of Phoenix's HOME contribution and voucher allocation, and U.S. Senator Geo's congressional appropriation were all necessary. Speakers stressed that this political environment cannot be taken for granted.

State-level policy backdrop: Arizona Department of Housing director Ruby Dylan Williams credited Governor Hobbs' expansion of the state low-income housing tax credit and the housing trust fund as game-changing tools that "invite partners from both the public and private sectors to make the road to home a reality for so many Arizonans."

Duration

Other Notable Items

None. The entire event was devoted to the Garfield Terrace celebration and the public-private partnership model it exemplifies.