Mesa is shifting its approach to housing the homeless, with a new city-owned facility set to replace a more expensive contract with a local hotel. Here’s what real estate investors need to know:
🔄 Key Changes
- New Facility Opening: The Sunaire (64 rooms) will open in March 2026.
- Cost Savings: $2.5M/year for Sunaire vs. $3.1M/year for Windemere (85 rooms).
- Federal Funding: Sunaire’s renovation funded by pandemic relief dollars.
- Windemere Contract Ending: City plans to end its contract when Sunaire opens.
👥 Who’s Being Housed?
- Target Groups at Sunaire: Seniors, domestic violence victims, and families.
- Concerns Raised: Single women not automatically included unless they fit certain criteria (e.g., seniors or DV victims).
💰 Fiscal Impact
- Short-Term: $900K from General Fund in FY25-26 after reallocating relief funds.
- Long-Term: Entire $2.5M/year to be city-funded.
📉 Capacity Trade-off
- Reduction in Rooms: 25% fewer rooms = ~700 served vs. 820 at Windemere in 2024.
- Council Concerns: Some officials pushed to revise Sunaire’s eligibility to include all single women.
🏘️ Implications for Investors
- City subsidies make housing more viable for vulnerable populations.
- Could reduce neighborhood vagrancy or crime over time.
- Long-term, may influence zoning or neighborhood appeal near shelter sites.