SEDONA, Ariz. — The city of Sedona celebrated a major milestone on June 11, 2025 with the groundbreaking of Villas on Shelby, a new deed-restricted affordable housing complex that will provide 30 rental apartments to those earning an average of 60% of the area medium income (AMI), meaning rent for a 1-bedroom unit will be approximately $862 per month and rent for a 3-bedroom unit will be approximately $1,188 per month. The complex is expected to be completed in mid-2026.
City officials, housing partners and community members gathered on the construction site, located at 2250 Shelby Dr., to celebrate the start of construction on the long-planned project, initiated more than two years ago and advanced with support from local and state partners.
“Affordable housing is so important in our community. It helps families stay here, it helps workers live close to their jobs and it makes our whole city stronger. We can’t wait to see the Villas on Shelby come to life,” said city of Sedona Mayor Scott Jablow.
The project is made possible in part by the city’s contribution of the land and a $2,250,000 loan to the developer, funding from the Arizona Department of Housing (ADOH), and federal financing through a 4% Low-Income Housing Tax Credit (LIHTC) bond deal, a structure that leverages private investment to support long-term affordability.
Deputy Director Keon Montgomery of the Arizona Department of Housing attended the event on behalf of Director Ruby Dhillon Williams. “We’re proud to support communities like Sedona that are using creative tools and strong partnerships to meet urgent housing needs,” said Montgomery.
HS Development Partners Matt Shoemacher and Bonnie Demmy, serve as the project’s lead developers and successfully assembled the complex financing necessary to move it forward.
“These homes are for the people who make Sedona run — the workforce, the families and the long-time residents who want to stay close to what they love. We’re honored to help bring this vision to life,” said Shoemacher.
About the city of Sedona’s housing initiatives
The city of Sedona is committed to attaining workforce housing through public-private partnerships, policy decisions and strategic planning. Villas on Shelby is part of a broader approach to support community sustainability and housing choice for people at all income levels.
For more information on any housing programs and projects, contact Housing Manager Jeanne Blum at jblum@sedonaaz.gov or 928-203-5138.