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Council approves $528,000 loan tied to Elkwood Apartments affordability extension
Summary
Council approved a $528,000 loan to Wexford Development to secure 10% affordable units at the Elkwood Apartments; the loan program offers pro rata forgiveness if affordability extends to 50 years. Staff said the first buildings will come online late 2025–spring 2026 and that units will be distributed across phases.
The Flagstaff City Council voted Nov. 4 to approve a $528,000 loan to Wexford Development to support inclusion of affordable units in the Elkwood Apartments development.
Jennifer Michaelson, the city’s housing planning manager, said Elkwood was initially approved in 2020 and has experienced construction delays but is showing significant progress. She told council the developer agreed to provide 10% of units as affordable and accepted the city’s incentive structure that forgives loan principal on a pro rata basis for extended affordability up to 50 years: “At year 50... they do not need to pay us back. It's forgiven.”
Michaelson said two apartment buildings are expected to be available in December 2025, another by February 2026, and the final building plus retail by April 2026, subject to construction timelines and certificates of occupancy. Council members asked about distribution of the 22 affordable units; staff said they will be distributed across buildings and phased as each building comes online.
Council member House moved to approve the loan; the motion passed on a voice vote.
