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10.D.
City Council Meeting - FINAL (AMENDED)
Meeting Date:
03/18/2025
From:
Sarah Darr, Housing Director

TITLE:

Consideration and Adoption of Resolution No. 2025-12: A resolution of the Flagstaff City Council, accepting the transfer of the Williams Housing Authority Housing Choice Voucher Program
 

STAFF RECOMMENDED ACTION:

  1. Read Resolution No. 2025-12 by title only
  2. City Clerk reads Resolution No. 2025-12 by title only (if approved above)
  3. Adopt Resolution No. 2025-12

Executive Summary:

The City of Flagstaff Housing Authority (CFHA) has been successfully administering the Housing Choice Voucher Program for decades and currently administers 530+ vouchers serving low-income Flagstaff households. CFHA is rated as a High Performing Agency by the US Department of Housing and Urban Development (HUD).

The City of Williams and HUD have requested that the City of Flagstaff accept a voluntary transfer of Williams’s Housing Choice Voucher (HCV) program consisting of 50 vouchers and all associated funding. The City of Williams has concluded the HCV program is no longer independently viable in their community due to the decrease in available rental units and the limited administrative funding due to the program's relatively small size.

The City of Flagstaff has been presented with the opportunity to increase its number of Housing Choice Vouchers (HCV) by 50 via a transfer of the City of Williams (Williams) HCV program. It is of utmost importance to mention that should this program transfer be approved, no current Williams voucher holder will see any impact beyond the administering agency changing to the City of Flagstaff Housing Authority instead of Williams Housing Authority.

In recent years, fewer than 25 of the 50 vouchers allocated to Williams have been able to be utilized and Williams has determined the rental housing stock in the community is no longer sufficient to support the utilization of all 50 vouchers. Like many other communities, Williams has seen a decrease in available long-term rentals as units are shifted to more profitable short-term rentals. Shifts in how housing units are used are disproportionately impactful in small communities, and Williams' City Staff estimates the community has 250 short-term rental units, constituting 15% of its 1,653 total housing units.

The decrease in available rental units, combined with limited administrative funding, has led Williams to conclude that the HCV program is no longer independently viable. Administrative funding for HCV programs is provided by HUD based on the number of vouchers utilized at the end of the previous month. With utilization hovering around 50% or less, and few opportunities to increase utilization due to the limited rental stock, administrative funds have not been sufficient to support the necessary work. This financial strain further underscores William’s desire to transfer the HCV program to a more viable location while preserving the opportunity for vouchers to be utilized in the community.

The City of Flagstaff HCV Program, administered by the Flagstaff Housing Authority in the Housing Section, currently administers 530+ vouchers. 

Financial Impact:

There is no fiscal impact on the City of Flagstaff General Fund. The US Department of Housing and Urban Development will provide all program funding, including administration, reserves, Housing Assistance Payment funds, and ongoing funding.  
 

Policy Impact:

The City of Flagstaff Housing Authority has administrative policies for the Housing Choice Voucher Program in place. 

Previous Council Decision or Community Discussion:

City Council Work Session Discussion: February 25, 2025 

Housing Authority Board:
  • January 16, 2025 - Presentation and Discussion
  • March 4, 2025 - Approval of Resolution 25-02 recommending Flagstaff City Council accept the transfer of the Williams Housing Authority Housing Choice Voucher Program

Options and Alternatives to Recommended Action:

Approve Resolution
Approve Resolution with Amendments
Do not approve Resolution 

Connection to PBB Priorities and Objectives:

Livable Community:
Actively support attainable and affordable housing through the City’s 10-Year Housing plan as well as other projects and opportunities

Sustainable and Innovative Infrastructure:
Support the community’s social infrastructure needs; assist those partner organizations that provide services the City does not

Safe & Healthy Community:
Support social services, community partners, and housing opportunities
 

Connection to Regional Plan:

Goal NH.3. Make available a variety of housing types at different price points, to provide housing opportunity for all economic sectors.
Policy NH.3.3. Increase the availability of affordable housing for very low-income persons, through innovative and effective funding mechanisms.

Goal NH.5. Eliminate homelessness.
Policy NH.5.1. Provide adequate resources for families with children experiencing homelessness.
Policy NH.5.2. Provide adequate resources for individuals experiencing homelessness.
Policy NH.5.3. Support and expand programs that prevent homelessness.
 

Connection to Carbon Neutrality Plan:

Housing for All
HA-1 - Create housing options for households at all income levels and family sizes occupied by local residents.
HA-2 - Connect people to equitable housing solutions.
 

Connection to 10-Year Housing Plan:

Overarching Goal
Reduce the current affordable housing need in our community by half over the next ten years.
Element one:
Impact at least 6,000 low-to-moderate income Flagstaff residents through a combination of unit creation or subsidy provision.

Create 3: Create a dedicated funding source for affordable housing in Flagstaff.
Create 3.3: Identify ongoing resource opportunities for the purpose of assisting households experiencing homelessness, households at risk of becoming homeless, first-time homebuyers, and affordable housing targeted to these populations.
 

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