Sugar Hill on Stone is a 66-unit affordable housing development in Tucson’s historic Sugar Hill, along the City’s planned Bus Rapid Transit (BRT) corridor on Stone Avenue. The project is Phase II of the HUD Choice Neighborhoods Implementation (CNI) Housing Strategy in the Thrive in the 05 area. Located on a previously vacant site, the development reflects the Sugar Hill Neighborhood’s vision, bringing much-needed investment in a historically disenfranchised and disinvested community.
The development will create 66 units of affordable housing, including 37 units for families and individuals relocating from Tucson House and 29 additional affordable units for households earning up to 50% of the Area Median Income (AMI). All units will remain affordable for at least 50 years, ensuring long-term housing stability.
“Sugar Hill on Stone is proof of the City of Tucson’s commitment to investing in affordable housing and in neighborhoods that have experienced historic disinvestment. Soon, 66 families will be able to call this development home—living in safe, decent, affordable housing with access to the community amenities every Tucsonan deserves,” said Tucson Mayor Regina Romero. “Mayor and Council have been committed to creating a good quality of life for all neighbors in the Thrive in the 05. After two decades of effort, neighborhood partnerships, and investments, we are now seeing the results of our work.”
The groundbreaking was held today, Aug. 27, 2025, on site. Construction is expected to last approximately 16 months, with anticipated completion by October 2026.
Amenities include in-unit washer and dryer, dishwasher, free Wi-Fi, playground and BBQ area, solar-covered parking, rooftop solar, and secure bike parking. The units will be one, two, or three bedrooms in three- and four-story buildings within walking distance of Doris J. Thompson Park and the Donna Liggins community center. The building will include multi-purpose and community rooms for resident services and social activities. The project will feature a prominent mural, which will be co-designed with the neighborhood residents to contribute to the neighborhood’s sense of place and identity.
The project’s location is near the downtown campus of Pima Community College. The project encompasses approximately 1.38 acres and is located at 1910 N. Stone Ave., on the site of the old Bum Steer.
Sugar Hill on Stone is the third project developed by Housing and Community Development’s non-profit development arm, El Pueblo Housing Development (EPHD). EPHD and the City of Tucson have 11 projects in planning & development that will deliver over 1,200 units of affordable housing.
Image Courtesy of: Gorman & Co
Gorman & Company, which has partnered with the City of Tucson on other projects for the Choice Neighborhoods Implementation grant, is the co-developer of Sugar Hill on Stone.
“Sugar Hill on Stone is another key steppingstone in the commitment, by the Mayor and Council and Housing and Community Development, to provide high-quality, safe and secure affordable housing for Tucson families,” said HCD Director Ann Chanecka. “We appreciate the Sugar Hill community for working with El Pueblo Housing Development in this second housing development in the Thrive in the 05. El Pueblo and HCD have more exciting developments moving forward.”
“Gorman & Company is honored to partner with the City of Tucson and El Pueblo Housing Development on this transformational project,” said Sally Schwenn, Arizona Market President for Gorman & Company. “Sugar Hill on Stone not only creates new affordable housing options for families but also invests in the neighborhood’s future by ensuring these homes remain affordable for generations. We are proud to be part of bringing the community’s vision to life.”
Image Courtesy of: Gorman & Co
The development is largely financed through federal Low-Income Housing Tax Credits (LIHTC) award that results in over $21M of private funding into the project. The City of Tucson received the award through the Arizona Department of Housing LIHTC process and acquired the property in 2023.
In 2023, the city received the $50 million CNI grant from the U.S. Department of Housing and Urban Development. The eight-year grant is centered around residents, housing and neighborhoods in the Thrive in the 05, a neighborhood reinvestment initiative which began in 2018. The bulk of the funds will be directed at rehabilitating Tucson House and creating additional affordable and transitional housing. Other current projects include Amazon Flats on West Miracle Mile and future development at Stone and Speedway.
Feature Image Courtesy of: Gorman & Co
