Consideration and Adoption of Resolution No. 2020-66:  A resolution of the Flagstaff City Council declaring a housing crisis for the City of Flagstaff, prioritizing affordable housing within City operations to create safe, decent and affordable housing opportunities for all community members.

On October 29, 2020, City Council considered a F.A.I.R item on a citizen’s petition titled “Housing Crisis Emergency Declaration” and unanimously approved moving it forward for further discussion. At the November 24, 2020 Work Session, City Council discussed the draft resolution and this item incorporates the changes suggested by Council. Housing staff collaborated on a draft resolution declaring a Housing Crisis with other city divisions, Sustainability, Legal, and Devonna McLaughlin, the submitter of the petition and Chief Executive Officer of Housing Solution of Northern Arizona. The proposed resolution calls for action on seven (7) housing items related to planning, community education, programmatic solutions, and the overall prioritization of housing efforts and needs within the City as an organization.

While there are no direct financial impacts resulting from this resolution, the resolution does call for a prioritization of affordable housing activities and programs within City operations. 

This resolution, if adopted would have the impact of prioritizing affordable housing policy and programs within the organization. It will also have the impact of furthering additional goals identified in the City’s Climate Action and Adaptation Plan, Flagstaff’s Regional Plan and Neighborhood Plans. 

Priority Based Budget Key Community Priorities and Objectives

• Advance social equity and social justice in Flagstaff ^{(SP) 3.4/ 4.1/ 4.2/ 4.4/ (RP)PF.2-3/ NH.3-5/ LU.18/ T.5-7/ ED.2/ REC.1}
• Support the development of attainable and accessible housing ^{(RP)LU.2/LU.4/ LU.6/ LU.11-13/ LU.18/ NH.1/ NH.3-5}
• Implement, maintain and further the Climate Action and Adaptation Plan (CAAP) ^{(RP) E&C.2-4}

Regional Plan

• NH.1. Foster and maintain healthy and diverse urban, suburban, and rural neighborhoods in the Flagstaff region.
  • Policy NH.1.1. Preserve and enhance existing neighborhoods.
• NH.3. Make available a variety of housing types at different price points,to provide housing opportunity for all economic sectors.
  • Policy NH.3.1. Provide a variety of housing types throughout the City and region, including purchase and rental options, to expand the choices available to meet the financial and lifestyle needs of our diverse population.
  • Policy NH.3.2. Promote accessory dwelling units, where appropriate.
  • Policy NH.3.3. Increase the availability of affordable housing for very low-income persons, through innovative and effective funding mechanisms.
  • Policy NH.3.4. Reuse former brownfield, vacant buildings, and commercial buildings to provide new mixed-use and/or housing options.
  • Policy NH.3.5. Encourage and incentivize affordable housing.
• LU.4. Balance housing and employment land uses with the preservation and protection of our unique natural and cultural setting.
• LU.13. Increase the variety of housing options and expand opportunities for employment and neighborhood  shopping within all suburban neighborhoods.

Timeline

• October 13, 2020 - Citizen Petition received
• October 19, 2020 - F.A.I.R item for consideration of a “Housing Crisis Emergency Resolution”, unanimous support for moving forward
• November 24, 2020 - Received Council’s direction on the draft Housing Crisis Resolution

1) Approve and Adopt Resolution No. 2020-66 
2) Amend Resolution Resolution No. 2020-66 
3) Not Approve Resolution No.2020-66

The lack of affordable and workforce housing in the Flagstaff community has been a continuing problem for over 50 years. Data shows housing costs, pushed higher by limited supply and external demand, have exceeded the buying and renting power of our workforce for decades while income remained stagnant. In 2017, 54.6% of respondents to the Economic Collaborative of Northern Arizona (ECoNA) Housing Attainability for the Flagstaff Workforce survey stated they are considering leaving Flagstaff because of housing costs. In addition, 43.6% of people plan to leave Flagstaff in the “next few years”.
 
Housing Solutions of Northern Arizona and the City of Flagstaff’s Housing Section co-created an infographic titled “Affordable Housing Needs Assessment for the Flagstaff Community”. The infographic sources data from the 2018 American Community Survey, Department of Housing and Urban Development, Council for Community and Economic Research, and Flagstaff’s Multiple Listing Service which reveals that;

1. 49% of all Flagstaff households are low income.
2. 22,373 Flagstaff community members are living housing cost-burdened, meaning that households are paying more than 30% of their monthly income toward housing costs.
3. The cost of housing is 33.5% higher and the cost of living is 13.4% higher in Flagstaff compared to national averages.
4. Since 2010, the median sales price of a home rose by 53%, while Area Median Income (AMI) rose by 14%.

COVID-19 has created greater instability among vulnerable populations experiencing or at-risk of homelessness and said instability is projected to increase due to the long-term effects of COVID-19 on vulnerable populations. Now more than ever, households are just one life event away from eviction and/or foreclosure, increasing housing insecurity.
 
From every crisis, an opportunity is created. The Housing Section, local housing providers, and housing practitioners are ready for the call to action should a Housing Crisis be declared by City Council in the Flagstaff Community. 

• Affordable housing in Flagstaff has been a documented need for more than 50 years and has reached crisis levels in recent years with data showing housing costs pushed higher by limited supply and external demand exceeding the buying and renting power of the local workforce for decades while income has remained stagnant.
• Over the past 10 years, the median sales price of a home rose by 53%, while Area Median Income (AMI) rose by only 14% according to datasets published by the United States Department of Housing and Urban Development (HUD) in 2020 and, according to the Council of Community and Economic Research’s Quarter 1, 2020 Cost of Living Index, the cost of housing is 33.5% higher and cost of living is 13.4% higher in Flagstaff compared to national averages.
• A significant portion of the housing stock in Flagstaff consists of second homes and short-term rentals, thus impacting the availability of housing stock for local households.
• According to the 2018 American Community Survey and recent data from the 2020 Flagstaff Community Affordable Housing Needs Assessment, 55% of renters and 27% of homeowners (total of 22,373 Flagstaff community members) are living in housing cost burdened households, meaning that households are paying more than 30% of their gross monthly income toward housing costs.
• In relation to local homeownership, Multiple Listing Service data from the first half of 2020 shows the median sales price of a home in Flagstaff was $407,500, requiring a household to earn approximately $86,360 (assuming 30% housing ratio) annually to afford the monthly mortgage payment and have about $26,000 in funds to contribute toward the down payment and closing costs.
• In relation to the local rental market, 2020 data from the HUD’s Fair Market Rent determination for a 2-bedroom apartment in Flagstaff was $1,266 per month, which means a household would need to earn $4,220 per month or $50,640 per year in gross income to afford the monthly rent.
• In relation to local homelessness, November 2020 data from the Coconino County Coordinated Entry Front Door program indicates over 689 unique individuals, representing 366 households, are experiencing homelessness in our community, and of these individuals, 155 are chronically homeless.
• In 2017, 54.6% of respondents to the Economic Collaborative of Northern Arizona’s Housing Attainability for the Flagstaff Workforce survey stated that they are considering leaving Flagstaff because of housing costs and 43.6% plan to leave in the “next few years”.
• Housing opportunities close to employment, activity centers and permanent transit reduces greenhouse gas emissions, furthering goals identified in the City’s Climate Action and Adaptation Plan and Flagstaff’s Regional Plan.
• Federal and State Fair Housing Laws ensure full and fair access to housing opportunities by protecting individuals from being discriminated against in housing because of race, color, national original, religion, sex, disability or familial status.
• The current COVID-19 pandemic illustrates that individuals without stable housing are more vulnerable to poor health and communicable diseases, including COVID-19, and that unhoused people have limited options for safe, sanitary shelter, making an effective response to the deadly virus extremely difficult.
• The economic crisis, which resulted from COVID-19 business closures, disproportionately impacted lower-income households, which are often one life-event away from eviction and/or foreclosure, causing housing insecurity.
• Housing is healthcare as evidence-based research shows that households with safe, decent and affordable homes are better able to find employment, perform better in school and maintain improved health.

This is a action based on a citizen's petition, turned in with more than the required signatures and titled "Flagstaff's response to our local community's long-term Housing Crisis". The action requested by the community is; "Flagstaff City Council declare a Housing Crisis in the City of Flagstaff through Emergency Resolution. This action should be followed by the prioritization of housing as a focus of investment, action & support by the City.”