In a recent government meeting, officials discussed a new pilot program aimed at increasing the supply of affordable housing in Flagstaff. The initiative focuses on creating a permanent affordability model for homebuyers, which involves a unique financial structure designed to incentivize participation in the city’s land trust program.

Under this program, financial assistance ranging from $100,000 to $200,000 will be provided to homebuyers. This assistance will be used to purchase a portion of the land, which will then be deed-restricted or placed under a ground lease, depending on whether the property is a condominium or a single-family home. The goal is to ensure that these homes remain affordable for future buyers, as they will be treated similarly to other units within the land trust.

Officials emphasized that the program is designed to help homeowners who are willing to forgo some equity appreciation in exchange for the financial assistance. The structure aims to make it more appealing for buyers to enter the land trust, as opposed to simply receiving a cash payment without the long-term benefits of affordability.

The discussion also highlighted the current housing market dynamics in Flagstaff, where there is a noticeable shift towards rental developments and a scarcity of single-family homes. This program is seen as a proactive measure to address the growing demand for affordable housing without placing undue pressure on developers.

The meeting underscored the importance of balancing financial incentives with the city’s commitment to providing affordable housing options, ensuring that the program aligns with the expectations set forth to voters regarding the use of public funds.