In a recent government meeting, officials discussed significant updates to the city’s affordable housing programs aimed at addressing the growing housing crisis. The proposed changes focus on enhancing financial assistance for first-time homebuyers and increasing the availability of affordable homes within city limits.

Key proposals include raising the maximum assistance for first-time buyers from $40,000 to $50,000, with an improved matching ratio of 10 to 1. This adjustment is designed to make homeownership more accessible for residents earning up to 150% of the Area Median Income (AMI), which translates to approximately $146,610 for a household of three. The current eligibility criteria, which require applicants to be U.S. citizens or legal residents and first-time buyers who have not owned a home in the past three years, may also be revised to attract more local renters.

The meeting highlighted the stark reality of the housing market, revealing that as of July 30, only 29 homes priced under $550,000 were available within city limits. The average sales price for homes has risen to around $400,000, exacerbating the affordability crisis. Officials noted that the lack of supply for homes under $550,000 is a pressing concern, with only 23 homes sold in May 2024.

To further support affordable housing initiatives, the city is proposing a new permanent affordability program. This program would involve a community land trust model, where assistance would be provided in exchange for a commitment to maintain long-term affordability through deed restrictions. The proposed assistance amounts would range from $100,000 to $200,000, again with a 10 to 1 matching contribution ratio.

The city aims to incorporate feedback from the meeting into the final framework of these programs and plans to present the revised proposals at a council work session later this fall. The urgency of these discussions reflects a broader commitment to tackle the housing affordability crisis and ensure that more residents can achieve homeownership in Flagstaff.