Like many people around Sedona, the City Council has been discussing the housing crisis for years.
Most recently, the council approved a contract with Housing Solutions of Northern Arizona to administer down-payment assistance programs and educate residents on homeownership for the next three years starting in January of 2022. The contract requires $60,000 annually from the city.
The main details of the down payment assistance program include:
- The home purchasee can be anywhere in the Verde Valley but requires multi-year commitment to work in Sedona.
- Up to $10,000 of borrowed funds can be matched with up to $25,000 in assistance funds for 2.5-to-1 match.
- The buyer must owner-occupy the home.
- If the homeowner sells the home, the city is repai when it sells using an equity-share formula.
This program will be administered by Housing Solutions of Northern Arizona.
This comes after a 2020 housing study showed extreme housing gaps. This gap showed a demand of 1,500 households, including 1,260 units and future employment demand of 250 units. After the study was completed, median house prices rose to over $800,000, a huge rise from the $562,500 house median cost in 2019. All of these issues have resulted in a historically low inventory for sale and lease properties around the area.
After the presentation earlier this year, the council elected to take measures to promote workforce housing both in Sedona and in neighboring areas. Shannon Boone began as the split housing manager for Sedona and Cottonwood in late September.
HSNA looks to begin this project shortly after the first of the year.
“In addition to housing purchase, housing counseling and education for loan administration … as a [Housing and Urban Development] approved housing counseling agency, we also do foreclosure mitigation counseling, too,” Devonna McLaughlin, executive director of HSNA, said. “We have recently signed an agreement with the Department of Housing as the HUD-approved agency in Yavapai and Coconino counties.”
“This is a major win for the city and its residents. We were fortunate to have found a private sector partner with not only extensive experience building high-quality multi-family housing, but a genuine desire to make a positive contribution to our community. We are excited about all three of these announcements and plan to continue to pursue new and creative ways to make a meaningful dent in our workforce housing shortage,” Osburn said.
Sunset Lofts
The city also approved the construction of the workforce apartment building Sunset Lofts at 220 Sunset Drive. This $4.2 million project will be deed restricted to ensure rent and utility limits for 50 years. This will be 30% of gross income for wage earners making 80%, 90% and 100% of the area’s median incomes.
Based on these numbers, a one-bedroom apartment would range from $1,058 to $1,275, depending on income. A two-bedroom apartment would range from $1,184 to $1,534 — if the as-yet unbuilt property was renting right now.
The city council has already appropriated $400,000 in the FY22 budget to be used to fund the assistance portion of the program. The $60,000 annually to pay HSNA for the administration of the program will be taken from existing budget appropriations in the current year and will be budgeted as a separate expense in subsequent years.
