City takes major steps toward workforce housing

Sedona AZ (November 26, 2021) – The city of Sedona recently made three big strides to assist in offering solutions to the limited workforce housing options in Sedona – the hiring of a housing manager, approval from City Council to implement a down payment assistance program with Housing Solutions of Northern Arizona and approval from City Council to enter into a public-private partnership with Sunset Lofts, LLC for the development of a 46-unit apartment complex dedicated to local workforce.

With rising home and rent prices, workforce housing concerns have become a major City Council priority for the last several years, which set city staff on a path to explore options. City Manager Karen Osburn has been a critical champion of exploring all solutions that would make a positive impact.

Earlier this year Sedona partnered with the city of Cottonwood to jointly fund and hire a housing manager to serve both communities. “There’s no doubt that Sedona’s answers to its housing crisis are, at least in part, found in our neighboring communities. Both city of Cottonwood City Manager Ron Corbin and I recognize that the most successful approach will be a regional one,” said Osburn. 

The cities hired Shannon Boone as the housing manager and she began on Sept. 28, 2021. She will develop housing programs and implement recently created action plans in pursuit of additional workforce housing opportunities. 

This includes offering down payment assistance to employees working full-time for any employer within the city limits.

The main details of the down payment assistance program include:

• The home purchase can be anywhere in the Verde Valley but requires a multi-year commitment to work in Sedona.
• Up to $10,000 of borrower funds can be matched with up to $25,000 in assistance funds for a 2.5-to-1 match.
• The buyer must owner-occupy the home.
• If the homeowner sells the home, the city is repaid when it sells using an equity-share formula.
• This program will be administered by Housing Solutions of Northern Arizona.
• The city hopes to have this program implemented by early 2022.

To develop the 46-unit workforce apartment project the city will partner with the private sector, contributing up to $4.2 million to ensure long-term affordability. The vacant parcel at 220 Sunset Dr., where the project is planned, is already appropriately zoned for multi-family housing. The apartments will be deed restricted for 50 years to limit rents and utilities to 30 percent of gross income for wage earners making 80 percent, 90 percent and 100 percent of area median incomes.

Rents will be based on the U.S. Department of Housing and Urban Development (HUD) established rents for Sedona. For example, 2021 pricing would be as follows:

The developer expects to begin construction in 2022.

“This is a major win for the city and its residents. We were fortunate to have found a private sector partner with not only extensive experience building high quality multi-family housing, but a genuine desire to make a positive contribution to our community. We are excited about all three of these announcements and plan to continue to pursue new and creative ways to make a meaningful dent in our workforce housing shortage,” said Osburn.

For more information on these workforce housing advancements, contact Boone at 928- 203-5126 or sboone@sedonaaz.gov.