Notice of Intent to Request Release of Funds - August 2026

Notice of Intent to Request Release of Funds - August 2026

Published on August 03, 2026

On or about August 11, 2026, the City of Tucson Housing & Community Development Department will submit a request to the U.S. Department of Housing and Urban Development (HUD) for the release of Public Housing Capital Funds under Section 9(d) and section 30 of the U.S. Housing Act of 1937 (42 U.S.C. 1437g(d) and 1437z-2); HOME Investment Partnerships Program (HOME) funds under Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.); Project-Based Vouchers under Section 8(o)(13) of the U.S. Housing Act of 1937 (42 U.S.C. 1437f(o)(13)), and Housing Opportunity Through Modernization Act of 2016 (Public Law 114-201); Community Development Block Grant (CDBG) Entitlement Program funds under Title I, Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.); Pathways to Removing Obstacles to Housing (PRO Housing) funds under the Consolidated Appropriations Act, 2024 (Public Law 118-12242, approved March 9, 2024) (Appropriations Act); and Rental Assistance Demonstration Program (RAD) funds under Section 9 of the United States Housing Act of 1937, and Consolidated and Further Continuing Appropriations Act, 2012, to undertake a project known as Craycroft Towers and Lee Street Duplexes for the purpose of:

Craycroft Towers, constructed in 1976, consists of a detached clubhouse and 74 one- and two-bedroom units in a three-story, multi-family apartment building. Lee Street Duplexes consist of eight one-bedroom units in four buildings. The selected property was identified for transfer from the City of Tucson Public Housing Authority to HCD's non-profit development arm, El Pueblo Housing Development.

The project is a Rental Assistance Demonstration (RAD)/Section 18 conversion requiring the completion of both 24 Code of Federal Regulations (CFR) Part 50 and Part 58 environmental reviews. Section 18 of the U.S. Housing Act of 1937 allows Public Housing Agencies (PHAs) to sell (dispose of) public housing that is obsolete, distressed, or not cost-effective to maintain. Nine of the units would be RAD and 65 would be Section 18 under a single blended Housing Assistance Payments (HAP) contract. The project has been allocated 82 Project-Based Vouchers over 15 years and will have four HOME units.

Site improvements will include a new clubhouse building constructed north of the existing clubhouse building with an open lounge room, kitchenette, case management office, and support spaces. Other improvements include an upgraded perimeter security fence and trash enclosure gates. The property's landscaping will be enhanced, particularly around the new clubhouse and street frontages. The parking areas will be upgraded, including ensuring the accessible parking spaces meet all standards; photo-voltaic parking canopies may be considered based on availability of funds.

Improvements to Craycroft Towers include upgrading the heating, ventilation, and air conditioning (HVAC) system, electrical system replacement, and water/sewer pipe upgrades. Flooring and cabinetry will be replaced, along with all fixtures, appliances, lighting, exhaust fans, windows, and doors throughout the units and common areas. Painting will also be completed on the interior and exterior. The elevators will be replaced. Fire safety and security systems will be replaced, including upgrading the fire sprinkler system. Interior and exterior walls will be repaired, as needed, including providing additional sound isolation. The exterior roof and interior ceilings will be repaired or replaced, as necessary, to ensure adequate insulation. Modifications will be made to ensure full accessibility compliance, including reconfiguring the existing American with Disabilities Act (ADA) units and adding railings as needed. The unit currently serving as an office will be converted back into a residential unit.

Improvements to the Lee Street Duplex buildings will include replacement of the electrical systems, water heaters, doors, flooring and cabinetry, appliances, electrical outlets and switches, and light fixtures. The exteriors and entry paths will be repaired and upgraded, and the interior and exterior spaces will be repainted.

The activities proposed are categorically excluded under HUD regulations at 24 CFR Part 58 from National Environmental Policy Act (NEPA) requirements. An Environmental Review

Record (ERR) that documents the environmental determinations for this project is 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 [email protected]. All comments received by August 10, 2026, will be considered by the City of Tucson Housing & Community Development Department prior to authorizing submission of a request for release of funds.

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 OF 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 San Francisco Regional Office at One Sansome Street, Suite 1200, San Francisco, CA 94104 or via e-mail to [email protected]. Potential objectors should contact the HUD 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.