Neighborhood Catalyst Fund
Small Projects Can Change a Neighborhood.
The Neighborhood Catalyst Fund provides flexible financing for small-scale development projects that add housing, reactivate underused properties, strengthen commercial corridors, and create more connected, walkable neighborhoods across Tucson.
The Capital Between an Idea and a Finished Project
Many promising neighborhood-scale projects struggle to secure conventional financing—particularly during acquisition, predevelopment, construction, or other critical early stages.
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The Neighborhood Catalyst Fund helps close those gaps with flexible capital and development support tailored to the realities of smaller, locally rooted projects.
The fund is designed for projects that advance Tucson’s housing and economic development priorities while creating visible, lasting value within the surrounding neighborhood.
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This is financing, not a grant. Projects must demonstrate a viable repayment strategy.
What Kinds of Projects Are We Looking For?
We are especially interested in projects that:
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Create Missing Middle housing, such as duplexes, courtyard apartments, casitas, townhomes, or small multifamily developments
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Add housing or neighborhood-serving businesses near transit
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Redevelop vacant, obsolete, or underused properties
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Adapt existing buildings for productive new uses
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Bring new activity to commercial corridors
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Combine residential and neighborhood-serving commercial uses
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Support responsible infill and greater urban density
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Align with adopted City of Tucson plans, development overlays, and corridor strategies
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Priority may be given to projects located along designated community corridors, the GRID, the Sunshine Mile, transit routes, and other areas targeted for reinvestment.
Qualified Uses
Depending on the project, financing may be structured as a construction loan, subordinate debt, participation loan, mezzanine financing, or another appropriate form of flexible capital.
Property and Site Acquisition
Construction and Rehabilitation
Credit Enhancement
Tenant Improvements
Predevelopment
Costs
Gap Financing
General Terms
Anticipated loan size: $25,000–$150,000
Typical term: 3–5 years
Final rates, terms, collateral, equity requirements, and financing structure will depend on project risk, readiness, repayment capacity, and available funding.
How it Works
Start with a project conversation.
Tell us about the property, concept, financing need, and current stage of development.
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Submit a complete application.
Qualified applicants will provide the financial, organizational, and project information needed for underwriting.
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Project review and financing decision.
Projects will be evaluated based on readiness, community impact, repayment capacity, risk, and available funding. The Board of the Tucson IDA provides the final approval.
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Closing, disbursement, and project support.
Approved financing may be released in stages tied to documented project milestones.