Sedona council directs state to reassign $875,638 homelessness grant to regional nonprofit

The Sedona City Council voted unanimously on April 15 to ask the Arizona Department of Housing (ADO) to transfer an $875,638 homeless shelter and services fund grant to a qualified nonprofit for administration in the Verde Valley.

Councilors debated whether the city should run a Sedona-specific rental-assistance program tied to state eligibility rules or request a transfer so a regional provider could administer the funds. Staff presented three options: a Sedona-focused program with stricter nexus and likely reduced spending; a broader regional program administered by the city with a local presence and contractor (Catholic Charities was identified as a potential partner); or requesting that ADO reassign the award and contract directly with a qualified nonprofit for regional delivery.

The request to transfer the award grew out of state rules requiring use of the funds to serve people who meet HUD’s definition of “literal homelessness” (people living unsheltered, in cars, or exiting institutions without housing). City Manager Annette (last name not specified) told council that ADO staff told her the legislature and governor intended these funds to serve those experiencing literal homelessness and that a narrowly targeted Sedona-only program would likely serve far fewer households and might not expend the full grant.

Jeanne (last name not specified), who presented staff’s analysis, said the grant could have helped roughly 100 households over two years under the original regional approach. She explained a Sedona-only scope would likely serve about 25 households and “it is pretty much unlikely that the city will expend the full grant.”

Annette said ADO committed that, if the city requested reassignment, the department would spend the money in the Verde Valley and that Sedona residents could still benefit through regional delivery. Catholic Charities representatives Cammie Rasband, director of homeless services, and Sandy Flores, senior programs director, told council they would work with McKinney‑Vento liaisons and local partners to match people to appropriate funding streams and that coordinated entry and referral networks make it possible to reach Sedona residents even if the contract is administered regionally.

Public speakers including David Key, president and CEO of the Greater Sedona Chamber; Elizabeth Slane of Hope House of Sedona; and Joe Martin urged a regional approach and collaboration with Catholic Charities, citing workforce and service‑area realities. Opponents including Bill Noonan read a statement signed by local residents opposing the grant, saying it would attract more unhoused people to Sedona and criticizing Catholic Charities; speakers raising those concerns did not identify statutory constraints the city would violate by transferring the award.

Council members expressed concern about ensuring Sedona residents and people with ties to Sedona have access to the program and asked staff to seek written assurances in any transfer request that the selected nonprofit will report data to the city and maintain outreach or a local presence so Sedona residents can access services without undue travel. Council also discussed forming a working group and exploring separate local measures to help families identified by schools who do not meet the state’s definition of “literal homelessness.”

The motion approved by the council directed staff to request ADO transfer the homeless shelter and services fund award to a qualified nonprofit organization for independent administration within the Verde Valley, and to seek reporting and accountability measures to ensure Sedona residents have outreach and access to the program. The council’s vote was unanimous.

Next steps: staff will submit a formal transfer request to the Arizona Department of Housing, propose specific terms (data reporting, local outreach presence), and return to council with any draft agreements or additional recommendations for Sedona‑specific supports for children and families who fall under the McKinney‑Vento definition of homelessness but may not meet the state fund’s literal‑homelessness requirement.