The Sedona City Council’s proposed rental assistance program is off the table after the council voted unanimously on April 8 to return the Arizona Department of Housing grant originally intended to fund the planned car camp for homeless workers at the Sedona Cultural Park to ADOH to be redistributed to organizations in the Verde Valley.

Council had previously discussed a city staff proposal for reallocation of the $875,638 grant on Feb. 11, which would have redirected the funding to a two-year program run by Catholic Charities Community Services to provide rental assistance to homeless individuals or pay to move them out of the Sedona area.

“Council, during the discussion, wanted to clarify the eligibility requirements to explore potential impacts on Sedona homeless students,” Housing Manager Jeanne Blum said. “School students fall under a different category … they are not necessarily experiencing literal homelessness, which is what this funding needs to target … some of the homeless students who are in Sedona may not qualify for this particular program.”

“Staff was directed to come back with an amended scope of services that was kind of Sedona-specific, to serve the local community, and make sure that the persons that we were served had a verifiable Sedona connection,” Blum continued. “There were some challenges with that, because it reduces the number of households that are being served and it’s pretty much unlikely the city will expend the full grant. Additionally, the Department of Housing may prefer a broader service area.”

The alternative option, Blum said, would be “to request a transfer of the grant to a qualified nonprofit,” which would “expand housing opportunities for more people, and it would also ensure data collection for future policy decisions.”

“Staff recommendation is to transfer the grant to a qualified nonprofit,” Blum concluded.

In discussion with ADOH, “we learned about this distinction between the two definitions of homelessness that would not allow us to serve the students at the school district,” City Manager Anette Spickard added. With regard to staff’s estimate that the amended scope of work would only affect about 25 families, instead of the 103 estimated in the original proposal, “ADOH was a little concerned that would be too small and not meet the legislature’s intent for this grant.”

“Our grant would actually just be transferred back to ADOH for them to administer directly,” Spickard said. She clarified that council could ask staff to set up a separate city-funded program to benefit homeless students.

Councilwoman Kathy Kinsella asked what would happen to the unexpended funds if the city was unable to spend them all due to a reduced scope of work.

Since it was a reimbursement grant, “it just stays with the state,” Blum said.

“Do we have reason to think that Catholic Charities will still be the qualified service provider when the grant is reassigned?” Kinsella asked.

“My understanding is that they would work with them,” Spickard said. “They would still have this network of referrals happening.”

Councilman Brian Fultz asked staff to assess ADOH’s response to the council’s desire for “this really strong nexus.”

“They were a little lukewarm about our original request to scale it down to just the Sedona nexus because it doesn’t meet the full intent of the legislature,” Spickard said. “I don’t think they would accept the transfer and then only spend the money on Sedona nexus people. I think they will do Verde Valley region because that’s the underserved community in the state.”

“So you’re saying a nexus still exists, just the nexus is a wider area of the region,” Kinsella said. Spickard and Blum agreed.

“These are all very soft terms,” Councilwoman Melissa Dunn said. “Is there an assurance that Sedona will be considered as part of the Verde Valley?”

“In the conversation with ADOH staff, they did state clearly to me that when we request the transfer of the grant, that we could identify some terms for that, and they threw things out like, you will get data and reporting that you request, things like that, which tells me that we have some influence on what that new contract’s going to look like with Catholic Charities,” Spickard said.

Public Comments

“I do support you all looking at a regional solution to a regional challenge,” Sedona Chamber of Commerce President David Key said. “I think that feels appropriate.”

“The rental assistance funding … would have a direct and immediate impact. It could help families in our program move more quickly into permanent housing,” said Elizabeth Slane of Hope House of Sedona. “Anything that help the homeless in Sedona I think need to be considered.”

“I support the idea of moving these funds either the original plan, which is, what, phase two, where we contracted with Catholic Charities, or we give to ADOH and have them allocate it,” Jo Martin said. “We are relying on the administration of the state to give us help … We’re trusting the state to help our community instead of us maybe having more control over those funds.”

“The grant is a solution in search of a problem,” Bill Noonan said. “It’s a bit of an affront to the democratic process that the city reconsidered applying for this grant or that the state of Arizona is still trying to foist it on us through this NGO.”

Council Comments

“Nobody denies that there are homeless people here, but there is a perspective about whether it is a big monumental problem deserving of big government resources or not, and when we’ve spent no money, essentially, on it, to go from that to $875,000 in two years is a pretty big ramp-up,” Fultz said. “I support moving that money back to ADOH. I certainly hope that we will provide direction that says that any recipient needs to have a strong nexus then to the Verde Valley so it’s not a ‘come one, come all,’ it’s not an incentive for van lifers to participate.”

“I would go with moving ADOH money further into the region,” Dunn said. “I would like for us to have some kind of assurance that people who are in Sedona have a way of getting resources, whether it’s at the library or wherever.”

“I also support moving the grant from Sedona to an NGO and serving the Verde Valley,” Vice Mayor Holli Ploog said. She added that the number of people to whom the original plan proposed to provide assistance “was more than we had in Sedona to serve.”

“I support the money going back to ADOH … the homelessness here is a regional issue,” Councilman Derek Pfaff said. “I don’t think we attach strings to it. We’re trying to have it both ways.”

“Regional solutions are the right approach,” Councilman Pete Furman said. “We need to be good partners in the Verde Valley on this issue.”

“I think it’s important to make sure the full amount of money that’s available from the state can be utilized,” Kinsella said.

“I don’t support putting restrictions on ADOH. They know what they’re doing, they do it best,” Mayor Scott Jablow said. The council then voted to send the money back.