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Housing commission signals support for technical update to affordable‑housing incentive policy to include water and sewer fees
Summary
Commissioners reviewed a technical amendment to the city's Incentive Policy for Affordable Housing (IPAA), clarifying that water and sewer system fees and certain impact fees are included as development fees eligible for reimbursement under the policy. Staff indicated a larger policy update will follow.
At its May meeting, the Flagstaff Housing Commission reviewed a technical amendment to the city’s Incentive Policy for Affordable Housing (IPAA). A staff presenter described the change as a small, clarifying update that explicitly adds municipal water and sewer system fees to the definition of development fees covered in the policy.
The presenter told commissioners the amendment replaces an outdated appendix with live links to current AMI tables and updates terminology (the Development Review Board reference was updated to "interdivision staff"). The amendment also clarifies that "water and sewer system fees include any fee paid to the municipality for the connection to the municipal water and or sewer system and include the customer meter fees, capacity fee, service fee, connection fee, and any associated taxes," and that such fees can be reimbursed under the IPAA where applicable.
Staff emphasized the change is technical and that a broader IPAA policy rewrite is forthcoming. The presenter noted the amendment will go to City Council in May and that staff worked with legal, water and finance divisions on definitions. The presenter also announced they will be leaving the role due to relocation.
Commissioners offered general support and indicated they want the larger policy update pursued; several commissioners gave visible approval (thumbs up/head nods) when staff sought confirmation to forward the technical amendment to council. No formal roll call vote or motion was recorded; staff reported collective head nods in support and planned to transmit the technical amendment to council for formal consideration.
Commissioners and staff also discussed the role of AMI updates (the presenter noted HUD updated AMI figures effective April 1) and the policy’s funding sources, which staff said include general fund allocations and in‑lieu fees.
Staff said the larger IPAA rewrite will incorporate more substantive policy changes at a later date.
