Sedona council weighs affordable housing project after development funding adjustments

In a pivotal meeting held on April 28, 2025, the Sedona City Council engaged in a spirited discussion regarding a significant affordable housing project that has been in the works for several years. The atmosphere in the council chamber was charged with anticipation as city officials and developers gathered to address the complexities surrounding the project, which aims to provide much-needed housing for the community.

At the heart of the discussion was a proposed $2.25 million loan from the city, which is part of a larger funding effort that includes nearly $20 million from various outside sources. Matt Schmacher, representing HS Development Partners, emphasized the collaborative nature of the project, highlighting the importance of partnerships in securing the necessary financing. He reassured council members that the project is poised to make a substantial impact on the lives of Sedona residents, particularly those struggling to find affordable housing.

Schmacher detailed the project's evolution, noting that it had transitioned from a 9% tax credit project to a 4% tax credit model, which has introduced new challenges. He expressed confidence in the project's readiness, stating that all necessary permits have been secured and that construction could begin within weeks, pending final approvals. However, he acknowledged the intricate web of financing and compliance requirements that must be navigated, which has led to some uncertainty among council members.

As the council deliberated, concerns were raised about the shifting terms of the project and the implications for long-term affordability. Some council members expressed skepticism about the deal, citing a lack of clarity and the need for independent legal advice to ensure the city's interests are protected. The discussion underscored the delicate balance between urgency and thoroughness, as the project faces looming deadlines tied to tax credits and financing agreements.

Despite the challenges, there was a shared recognition of the pressing need for affordable housing in Sedona. Council members voiced their support for the project while grappling with the complexities that come with it. The meeting concluded with a sense of urgency, as the council weighed the potential benefits of the project against the risks involved, leaving the future of affordable housing in Sedona hanging in the balance.