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Housing updates: staff show bond spending, HUD program stability and options for creating ongoing housing funding

December 19, 2025 | Flagstaff City, Coconino County, Arizona


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Housing updates: staff show bond spending, HUD program stability and options for creating ongoing housing funding
Housing staff used the retreat to present an overview of the city’s housing programs, bond-funded incentives and options for longer-term funding.

The presentation separated the city’s two housing roles: the HUD-funded housing authority (public housing and Section 8 vouchers) and a new housing-investment team that handles bonding, incentives and owner-occupancy programs. Staff showed historical revenue lines for the housing authority and said voucher program administrative funding and housing-assistance payments have grown in recent years largely because rents have risen, not because HUD changed rules. Staff reported the public-housing and voucher programs were stable at the time of the briefing.

On bond-funded programs, staff gave a progress update: rental-incentive funding, adaptive-reuse commitments and home-buyer assistance have been allocated across projects; some previously committed funds were reallocated when project scopes changed. Staff also said 22% of newly built units since the 10-year plan adoption (through Sept. 30) were affordable — measured as delivered units, not promises — and that forthcoming projects may raise that percentage.

Policy choices for council: housing staff asked whether council would like staff to develop three specific budget proposals for future consideration: (1) establishing an ongoing dedicated funding source for housing (tax, fee or other), (2) expanding the city’s incentive policy to support middle-market and workforce housing including regulatory incentives, and (3) exploring employer-assisted housing for city employees (or a broader employer-assisted program). Staff said each option would require analysis of legal and funding constraints and that they could prepare feasibility studies and program-level cost estimates if council wants to proceed.

Council interest: several members asked for options and expressed interest in exploring a dedicated ongoing funding source and expanded incentive policy; some also suggested feasibility and legal analysis before advancing employer-assisted housing ideas.

Next steps: staff will return with proposals and cost estimates for council direction if the council requests them during the budget process.

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Scribe from Workplace AI
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