Sedona City Council votes to increase rent local program cap to $2,500

During the Sedona City Council meeting on April 8, 2025, a significant discussion centered around the proposed amendment to the Rent Local Program, which aims to address the ongoing affordable housing crisis in the area. The council considered raising the monthly rental cap from $2,200 to $2,500 to better align with current market rates and encourage more homeowners to participate in the program.

The Rent Local Program was established in 2022 in response to the increasing conversion of residential properties into short-term rentals, which has exacerbated the affordable housing shortage for Sedona's local workforce. The program provides financial incentives for homeowners to convert their properties from short-term to long-term rentals, specifically targeting mid to low-income workers.

Currently, the program has seen limited participation, with only seven properties enrolled, housing 19 individuals. The existing rental cap has been identified as a barrier, as it does not reflect the current market rates in Sedona, where three-bedroom homes typically rent for around $3,500 per month. The proposed increase to $2,500, combined with a $10,000 incentive for homeowners, aims to make the program more attractive and accessible.

Council members discussed the disparity between the U.S. Department of Housing and Urban Development's (HUD) reported fair market rates for Yavapai County and Sedona's actual rental market. While HUD suggests a fair market rent for a three-bedroom home is approximately $2,050, Sedona's market indicates a much higher average. This misalignment has discouraged potential participants, with many homeowners indicating that the current cap is below what they can accept.

The proposed adjustment is expected to broaden the program's reach, allowing more local workers, particularly families needing larger homes, to access affordable housing. The council emphasized that this change would not require additional funding from the city budget, as the existing budget for the program remains sufficient.

In conclusion, the council's discussions highlighted the urgent need for affordable housing solutions in Sedona. By raising the rental cap, the Rent Local Program aims to attract more homeowners and ultimately provide stable housing options for the local workforce. The council plans to monitor the program's success over the next nine months to assess the impact of the changes and make further adjustments if necessary.