Development Por La Causa: Phoenix Nonprofit Funds Housing Projects Via Federal Grants

Jimmy MagahernMay 1, 2024
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Rendering of the CPLC small business incubator in the old Arnold’s Pickles factory; rendering courtesy SPS+ Architect
Rendering of the CPLC small business incubator in the old Arnold’s Pickles factory; rendering courtesy SPS+ Architect

Apart from activism, Chicanos Por La Causa has quietly become a viable real estate developer.

Since its inception in 1969, Phoenix-based nonprofit Chicanos Por La Causa has built its reputation on grassroots political activism. From its start in the Farmworker Movement alongside César Chávez to its $10 million 2022 campaign to increase Latino voting in Arizona, CPLC has advocated for justice for Mexican Americans and other marginalized communities throughout Arizona (and now, California, Nevada, New Mexico and Texas).

On a lesser-known front, the organization has been involved in real estate, funding housing projects via federal grants, tax credit programs, HUD, EDA and community capital.

“Real estate was always a piece of what we do,” says Nic Smith, CPLC’s vice president of real estate development. “And kind of our model to make sure that we’re sustainable into the future.” As of 2023, CPLC ranked as the second largest nonprofit in Phoenix, just behind St. Mary’s Food Bank.

Most of its developments are affordable housing. CPLC currently manages 2,406 multi-family rental units throughout its territory.

But CPLC’s newest project, Residences on Main, a five-story mixed-use development being built on a long-vacant lot on Main Street and Country Club Drive in Mesa, will feature 198 apartment units to be rented at market rate – what José Martinez, CPLC’s executive vice president of economic development and real estate, calls “attainable housing.”

“It’s part of the diverse housing continuum that’s required to create healthy neighborhoods,” says Smith, “instead of just big concentrations of one particular type.” 

Martinez adds that real estate development is just one piece CPLC applies to solving problems in underserved communities. The organization also runs Corazón, a residential substance-abuse rehabilitation center; LUCES, an HIV program; and De Colores, a domestic violence shelter.

“What one project can do is provide a piece to the larger puzzle, respond to the needs of the community and anticipate what is to come,” he says.

President Obama visiting a CPLC housing project in 2014; Photo courtesy flickr.com/Pete Souza
President Obama visiting a CPLC housing project in 2014; Photo courtesy flickr.com/Pete Souza
Other CPLC Developments

You don’t have to be Chicano to qualify for CPLC’s services. “Our housing is for everybody in the community,” Nic Smith says. Still, its website emphasizes “a special competence in serving the Latino community.” In land development, CPLC’s approach is threefold:

Tax Credit Housing

CPLC’s involvement in traditional affordable housing through tax credit programs underscores its role in addressing the needs of those earning at or below 60 percent of the area median income.

Workforce Housing

CPLC’s housing continuum also addresses individuals and families earning between 80 and 120 percent of the area median income, highlighting a commitment to serve a spectrum of housing needs.

Commercial Redevelopment

In 2018, the org bought the “Pickle House,” built in the 1920s as Arnold’s Pickles factory, and renovated it with state grant funds into an incubator for small businesses in Central Phoenix. It’s one of several CPLC projects revitalizing historical sites.