Like many people around Sedona, 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 about homeownership for the next three years beginning in January 2022. The contract demands $ 60,000 per year from the city.
The main details of the down payment assistance program include:
- The home buyer can be located anywhere in the Verde Valley, but requires a multi-year commitment to work in Sedona.
- Up to $ 10,000 in borrowed funds can be matched with up to $ 25,000 in aid funds for a 2.5-to-1 match.
- The buyer must own the house.
- If the owner sells the house, the city is reimbursed when it sells using an equity participation formula.
This program will be administered by Housing Solutions of Northern Arizona.
It comes after a 2020 housing study showed extreme housing gaps. This gap showed demand for 1,500 households, including 1,260 units, and future employment demand of 250 units. When the study was completed, median home prices reached over $ 800,000, a significant increase from the median home cost of $ 562,500 in 2019. All of these issues resulted in a historically low inventory of properties for sale. and for rent in the area.
Following the presentation earlier this year, the council chose to take action to promote workforce housing both in Sedona and in neighboring areas. Shannon Boone started as a shared housing manager for Sedona and Cottonwood in late September.
HSNA plans to start this project soon after the first of the year.
âIn addition to buying homes, providing housing advice and education for loan administrationâ¦ as a [Housing and Urban Development] As a licensed housing consultancy, we also provide foreclosure mitigation advice, âsaid Devonna McLaughlin, Executive Director of HSNA. âWe recently signed an agreement with the Ministry of Housing as a HUD-approved agency in Yavapai and Coconino counties. “
âThis is a major victory for the city and its inhabitants. We were fortunate to have found a private sector partner with not only extensive experience in building high quality multi-family housing, but also a genuine desire to make a positive contribution to our community. We are excited about these three announcements and plan to continue to look for new and creative ways to significantly reduce our workforce housing shortage, âsaid Osburn.
Lofts at sunset
The city also approved construction of the Sunset Lofts workforce apartment building at 220 Sunset Drive. This $ 4.2 million project will be limited by deed to ensure rent and utility limits for 50 years. This will be 30% of the gross income of employees representing 80%, 90% and 100% of the median income of the region.
Based on these numbers, a one-bedroom apartment would cost between $ 1,058 and $ 1,275, depending on income. A two-bedroom apartment would cost between $ 1,184 and $ 1,534 – if the unbuilt property was rented out right now.
City Council has already allocated $ 400,000 in the FY22 budget to fund the aid portion of the program. The annual $ 60,000 to pay HSNA for administering the program will be taken from existing budget allocations for the current year and will be budgeted as a separate expense in subsequent years.