Workforce housing policy presented; council asks for financial scenarios and implementation steps

The Prescott Workforce Housing Committee presented a policy roadmap on Oct. 28, 2025, proposing a certification process and a suite of incentives intended to support households earning between 60% and 120% of area median income.

Nicole Kidney, chair of the Workforce Housing Committee, told council the committee began meeting in May 2023 and started developing policy language in October 2024 after extensive stakeholder outreach. The committee’s working definition of “workforce” targets the “missing middle”—households earning roughly 60%–120% of area median income. "For a family of four, using 2024 numbers, that's about $85,000," Kidney said as an example of the income band the policy would target.

The policy packages incentives on a sliding scale tied to the share of units in a project that meet workforce affordability. Those incentives include fee waivers or reimbursements (note: impact fees cannot be waived under current law but may be paid by the city or deferred through a development agreement), expedited processing, density bonuses and zoning flexibility, and water-policy coordination. The committee also proposed a workforce housing certification issued per project (not per developer) that would verify income targeting, design standards, compliance and a duration of unit affordability.

Committee and staff described next steps and constraints. Community Development Director Chelsea Walton and staff said project valuation typically appears at permitting and that exterior work drives preservation review; staff confirmed that the Yavapai County "Home of My Own" program has been adopted locally. Michael McInnis said the city received a $200,000 grant; roughly half has been spent, and about $75,000 remains available to support consultant work and strategic-plan development with Pollock & Company (referenced in the meeting). Staff said the policy is intended as the 30,000-foot roadmap and that consultant work will flesh out financial scenarios, scorecards and implementation details.

Council reaction and requests

Council members broadly praised the committee’s effort but repeatedly asked for financial analysis. Councilman Grady and others said staff capacity and cost estimates are required before the city can commit to incentives that have fiscal impact. Several members asked that remaining grant funds be used to run project scenarios and build a scoring/financial analysis tool so council can assess which incentives provide the largest “bang for the buck.”

Public comment and staffing recommendation

Public commenter Kathy Rusing urged clearer definitions tied to measurable rent limits (replace the word "housing" with "below-market rents no more than 30% of gross household income, including utilities") and suggested limiting deferred impact-fee assistance to below-market units only. She recommended a minimum set-aside of workforce units to ensure projects meaningfully deliver affordability and urged the city to hire a dedicated workforce housing administrator to oversee certification and compliance.

What happens next

Staff and the committee were asked to return with financial scenarios and a draft certificate/scorecard using remaining grant funds and consultant support; council also suggested exploring prioritizing smaller, infill projects as well as city-owned property and potential land-banking approaches. The policy remains a framework; no incentives were adopted at the study session.

Provenance: The workforce housing presentation began at 00:49:37 (transcript block_182) and the item concluded before adjournment at 01:29:12 (transcript block_440).