The Sedona City Council selected Steps to Recovery Homes of Cottonwood as the recipient of its latest round of Community Development Block Grant funding at its meeting on Jan. 24.

CDBG funds are provided at the federal level by the U.S. Department of Housing and Urban Development and administered by the Arizona Department of Housing. Every four years, towns and cities award a portion of these funds to a project that involves eliminating slums, addressing community problems such as a natural disaster or health threat or benefits primarily individuals with low to moderate income.

Arizona cities do not distribute CDBG funds directly. Instead, they select projects to support and assist those projects’ proposers in applying to ADOH for the city’s funding allocation. Arizona is scheduled to receive approximately $9.7 million in the latest round of CDBG funding, and Sedona’s portion of that sum will come to about $406,016. The final funding amounts will not be settled until later in the cycle.

The Winnowing

Sedona City Council considered four projects for the CDBG. Verde Valley Habitat for Humanity submitted its critical home repair program, and Steps to Recovery offered its transitional housing program for individuals recovering from addiction. The other two projects, a proposal to build a homeless shelter or dayuse facility, and a proposal for $10,000 in planning funds to study the problem of homelessness in Sedona, were both put forward by the city of Sedona.

City housing manager Shannon Boone did not advance the city’s proposals strongly, pointing out that the city would need to find a partner on the shelter project, which would be unlikely.

“I think we would be putting our funding in jeopardy if we hoped to bring someone up to speed for this project in time,” Boone said. City Manager Karen Osburn added that the city already intended to include funding for a homelessness study in the upcoming budget for affordable housing programs.

“With this housing crisis we’re in, we feel that we also have to keep people in their homes, not just build new,” VVHH Executive Director Tania Simms told council when making the case for their critical home repair program. Due to inflation and rising costs, “more and more homeowners may not be able to keep up with their home maintenance and repairs.”

Simms explained that all of the program’s applicants are at or under 80% of the area’s median income level. VVHH has received 139 applications since the program began, 17 of which were from Sedona residents; 13 out of those 17 have been completed so far, with another one in progress.

In response to a question from Councilwoman Melissa Dunn, Simms confirmed that VVHH would allocate the CDBG to services to homeowners within city limits, if selected. The funding would be used for major repairs that had to be subcontracted out and could not be completed by volunteers, such as roof replacements and plumbing and electrical problems.

Damien Browning, CEO of Steps to Recovery Homes, addressed his organization’s focus on workforce development as part of their transitional housing program.

“Our goal is to create and empower reliable, sober, career-driven and purposedriven workers, provide supportive housing options and guide them through this process,” Browning said. “One of the key factors in our program is becoming a reliable person in the workforce.”

Steps to Recovery opened its current transitional home in Cottonwood five years ago and is looking to add another. Browning explained that if selected, the group planned to use $350,000 of the CDBG funding for a down payment on a new building, which would lower the mortgage payments enough to keep tenant rent in the neighborhood of $150 per week.

“With these funds, I was hoping to purchase something inside Sedona,” Browning said, but added that due to Sedona housing prices and availability, that might not be possible. Boone noted that if a property was to be purchased outside Sedona city limits with Sedona funding, Steps to Recovery could require that tenants either work in Sedona or had lived in Sedona prior to entering treatment.

“Just looking for a connection to Sedona, to make sure the Sedona population gets served,” Councilwoman Kathy Kinsella said.

Since its founding in 2013, Steps to Recovery has served over 400 people, more than 50% of whom have remained sober for two years or more.

The Investment

Members of the public and council alike showed a preference for Steps to Recovery’s application from the start.

“The need for such services in Sedona has become increasingly and painfully obvious,” Rev. David Cooper of Saint Luke’s Church said before quoting from Matthew 25:35-40. Cooper argued that it was easier to buy groceries for someone in need than to support those imprisoned by drugs or mental health, and that Steps to Recovery could help overcome that deficiency.

“I’m a recovered heroin addict. I’ve been clean for 17 years,” testified Frank Ferrante, of Sedona. “One of the most important aspects of recovery is the reintegration part. It’s as vital as not using … There’s an opportunity for the community to really do something wonderful for people that need help.”

“It’s a worthy investment both practically and spiritually,” Ferrante said.

Jennifer Perry, regional director for the Arizona Community Foundation of Sedona, and Adele Terry, chairwoman of the Greater Sedona Substance Abuse Coalition, also offered statements in support of Steps to Recovery.

Perry said it would have “a ripple effect that benefits families, employers and our society.”

“The reward to risk ratio is high. It’s a unique program,” Councilman Pete Furman said.

“I think this is an unmet need,” Councilwoman Jessica Williamson said. “We don’t have one and we have a lot of need here.”

“It has to happens as far as I’m concerned,” Mayor Scott Jablow said. “Buying a house with that kind of money here in Sedona — it’s not realistic. I would really want to give more opportunity for them to go outside as long as our residents or people in need are No. 1 for that home.”

“I think the service and program is more important than the location of the house,” Vice Mayor Holli Ploog said.

Councilman Brian Fultz argued that “a Steps to Recovery home would provide an amazing opportunity here in Sedona for people to support it, and you can’t do that if it’s out in the middle of nowhere or in a much more rural area.”

All members of the council ranked Steps to Recovery as their preferred choice to receive the city’s CDBG funding, and the motions to direct city staff to prepare the necessary application for the funding passed unanimously.