The Housing Commission defines housing to be affordable when the monthly cost of home ownership or rent does not exceed 35% of monthly gross income for a household generally earning 80%-115% of the median income for Yavapai and Coconino counties (currently about $50,000 per year).

The policy does not require developers to build affordable housing units, however it does offer them more flexible City zoning, and waives certain fees that developers typically pay to the City, along with an expedited review and permit process.  For example, the City will allow lots that contain affordable housing units to be up to 20% smaller than typically required by the City, and building heights to be 8 feet higher for those structures containing affordable housing units.

For their part, developers must make at least 12% of the the units they build affordable housing units (for developments of more than 10 units), or 6% of the units for developments with 9 or fewer units; or the developer may make a payment to the City (called an "in lieu fee") to assist the City in making affordable housing available to its residents.  The developer must also agree to maintain these units as affordable housing units for at least 50 years, and enter into a Land Use Restriction Agreement with the City that allows the City to record a lien on the property if the affordable housing requirements are not maintained.

While everyone seemed to agree that cheap land, lower developer costs, and greater housing density (more units per acre) are needed to encourage affordable housing, not everyone thought that the housing policy is the answer. Said Holly Mayberry of the Sedona Verde Valley Association of Realtors, who requested that the City Council delay approving the policy, "There are holes in this policy.  It's arbitrary and it will increase the costs to the City, expose the City to potential liability, and the fact that it's voluntary for developers and not mandatory raises the question whether it will net any real results."

Council member and liaison to the Housing Commission, Rob Adams, replied with harsh words, "I have a real problem with [the Sedona Verde Valley Association of Realtors] trying to delay this approval at the 11th hour, 59th minute. There have been [numerous] public forums on this issue over the past year...the bottom line is it's voluntary [for the developer].  The developer receives a benefit for a benefit given."

Mayor Pud Colquitt voiced some concerns, "How easy is this going to be for the City to administer?  And [building] heights are going to be a huge issue.  There are going to be problems because there's a real fear factor...and I hope that this policy includes the necessary safeguards so that it doesn't get out of control...But, I agree, that there's no magic bullet and we have to start somewhere."

Council member Ramon Gomez felt that the City needed a more comprehensive solution to the City's affordable housing issue, such as using a large tract of land at the wastewater plant to construct affordable housing.  In the end, however, he voted along with the other members to approve the policy, stating, "My family was a product of affordable housing and it gave me opportunities I otherwise might not have had.  The issue is:  who do you want to be your neighbor?  Just rich people?"

Sidebar

The Housing Commission began its presentation to the Council by showing a 13 minute video entitled: "Housing Sedona: Small Town, Big Problem."  Through interviews with Sedona's workers and business and government leaders, along with statistics, the video demonstrates that much of Sedona's workforce cannot afford to live in Sedona.

According to the video, a worker needs to earn $84.50/hour to purchase a median priced home in Sedona and $23/hour to rent; and only 4% of Sedona's housing stock is apartments versus 22% for the State.  As a result, 64% of Sedona's workforce lives outside of Sedona.  For example, only 4 out of 29 of Sedona's police officers live in Sedona; and even professionals earning up to $70,000 a year have difficultly affording housing in Sedona.  

Said John O'Brien, the City's Director of Community Development, "If we don't provide housing for our workforce, then they can't be here to provide the services that we need as a community and that's extremely important. It works both ways."

Said Linda Martinez, "The loss of Hawkeye and the Oak Creek Mobile Lodge [due to developer conversion to higher end housing] is a disappointment to the Housing Commission but we have no control over what property developers can do.  It's a State law. There are over 100 affordable housing units that we will lose due to conversion."  Ms. Martinez goes on to say, "One sacred cow is...[housing] density.  We need to put this on the table.  We know that this can be done visually to blend with the community...in limited areas."

To view "Housing Sedona: Small Town, Big Problem," click on the picture or click http://www.sedona.biz/housingcommission.htm .  Click the back button to come back here.

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