12.
City Council Work Session
- Meeting Date:
- 02/25/2025
- From:
- Sarah Darr, Housing Director
- Department:
- Planning & Development Services
Co-Submitter:
TITLE:
Presentation and Discussion on an Opportunity to Expand Housing Choice Voucher Program Resources by Accepting a Voluntary Program Transfer From the City of Williams
DESIRED OUTCOME:
Discussion of the proposed opportunity and direction from Council.
Executive Summary:
The City of Williams and the US Department of Housing and Urban Development (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.
Information:
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.
Additional detail is contained in the attached presentation.
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.
Additional detail is contained in the attached presentation.