Flagstaff Housing Commission reviews zoning text amendment to allow single‑use residential and expand adaptive reuse incentives

At its May meeting, the Flagstaff Housing Commission heard a presentation from Tiffany Antal, the city’s zoning code manager, on a proposed text amendment to allow single‑use residential development in commercial zones as an affordable‑housing incentive and to add incentives for adaptive reuse projects.

Antal described single‑use residential as "a development containing only residential uses" and said, "Single use means not part of a mixed use project." She told commissioners the proposal would allow certain single‑use residential projects to avoid the current conditional use permit process if they meet affordability requirements, making lending and project planning more predictable for developers.

The draft amendment would require rental projects to set aside a minimum of 20% of units at up to 80% of area median income (AMI) for 30 years. For ownership units, the draft proposes 15% of units at 50% AMI. Antal said those percentages are intended as affordable‑housing incentives rather than a wholesale change to by‑right uses at this time.

On adaptive reuse, Antal said the proposal would define adaptive reuse as converting an existing building to a new use while preserving the building’s elements rather than demolishing it. The draft includes these limits and incentives for adaptive reuse projects: the existing building must be at least 15 years old (the draft allows flexibility on that threshold); additions may not exceed 25% of the existing building; projects would not be required to upgrade existing on‑site parking to current standards; they would be exempt from site planning/design standards and required landscaping updates; and they would not have to provide the standard 15% common open space required of new multifamily developments.

Commissioners debated whether single‑use residential should be allowed by right in commercial zones or only via the incentive program. Commissioner Tyler Denham and several others said they prefer making single‑use residential a by‑right use in commercial districts, arguing it supports mixed‑use areas even if an individual building is solely residential. Others favored retaining the incentive approach for now and using the proposed interim step to encourage adaptive reuse and to support pending bond funds for adaptive‑reuse projects.

Several commissioners voiced particular support for making adaptive reuse easier to accomplish. Commissioner Eric Brownfield said the city has limited vacant land and should focus on repurposing existing buildings. Commissioners also discussed how smaller conversions (for example, buildings under 5,000 square feet) could produce duplexes, triplexes or small multifamily that may be affected differently by AMI set‑asides.

Antal said staff plans public outreach on the draft amendment and aims to bring the zoning change to the Planning and Zoning Commission in August and City Council in September, coordinated with a separate amendment on high‑occupancy housing. She said staff is treating this as a conservative, interim approach while broader code concepts tied to the city’s last CAP process are finalized.

No formal vote was taken on the code text amendment at the meeting; commissioners provided feedback and asked staff for a revised draft reflecting the discussion. Antal said she will post a cleaned draft within one to two weeks and continue outreach.

The conversation also referenced state constraints and Proposition 207 as context for the city’s cautious approach; Antal said the recent state statute that allows single‑use residential in some jurisdictions did not apply to Flagstaff because of the city’s population size.

Antal closed by saying she would return next month with a related amendment on high‑occupancy housing and additional detail on the adaptive‑reuse provisions.