Housing is Healthcare Fund Awards $2.5M to Expand Affordable Housing

As Arizona continues to grapple with rising housing costs and growing demand for accessible living options, a unique partnership between healthcare providers is helping to bridge the gap between stable housing and overall well-being. The Housing is Healthcare Fund, created through collaboration among Arizona Medicaid Health Plans, announced $2.5 million in grants to support seven affordable housing developments across the state.

The grants will support housing projects in Gilbert, Glendale, Mesa, Phoenix, Prescott Valley, and Tucson, expanding access to safe, affordable homes for residents. The funding reflects a commitment among participating Medicaid Health Plans to address housing challenges affecting Arizona’s most vulnerable populations, including individuals and families eligible for the Arizona Health Care Cost Containment System (AHCCCS). Since its creation in 2020, the Housing is Healthcare Fund has distributed $14.8 million through 36 grants.

“Early in my career I saw how safe, stable housing could make the difference for an individual’s mental and physical health,” Chief Executive Officer of Mercy Care’s Tad Gary said. “As health plans, we learned that just paying for housing wouldn’t be enough; it was essential for all of us to work together to expand the availability of affordable housing for our members and communities.”

The fund itself represents a unified effort among organizations contracted through Arizona’s Medicaid program. Participating organizations include Arizona Complete Health-Complete Care Plan, Banner – University Family Care, Blue Cross Blue Shield Arizona Health Choice, Molina Healthcare of Arizona, Mercy Care, The NARBHA Institute, and UnitedHealthcare Community Plan of Arizona. Each partner shares a commitment to investing in long-term housing solutions.

To help guide and administer the program, the Fund partners with Local Initiatives Support Corporation (LISC), a national community development financial institution with a Phoenix-based office. LISC supports the participating health plans by facilitating project review and overseeing the grant award process, ensuring that funding is directed toward projects with meaningful and measurable community impact.

The 2025 grant recipients represent a diverse range of housing initiatives designed to meet varying community needs. Agape House of Prescott, Inc. received $100,000 for its Prescott Valley Completion Project, which is already under construction and expected to be completed in 2026. Central Valley Coalition for Affordable Housing was awarded $500,000 to support the 41st and Thomas development in Phoenix.

In Mesa, Copa Health Inc. received $500,000 to support The Beverly, a housing development designed to serve individuals requiring supportive services, with construction expected to begin in March. John 1334 Ministries was awarded $400,000 for Eden Village of Arizona, a community development project.

Tucson will see two projects supported through the Fund. El Pueblo Housing Development received $500,000 for Sugar Hill on Stone, a development currently under construction. GHK Properties, LLC received $300,000 for Desert Dove Apartments, which is underway and anticipated to be completed in 2026.

Veterans will also benefit from this investment through the Veterans Community Project, which received $300,000 to support the Glendale Tiny Homes for Veterans development. Construction is expected to begin in March 2026, providing housing solutions specifically tailored to support veterans transitioning to independent living.

By recognizing housing as a critical social determinant of health, the Housing is Healthcare Fund continues to demonstrate how cross-sector collaboration can create meaningful, long-term change. For more behind this Frontdoor, visit azahp.org.