8.
City Council Work Session
- Meeting Date:
- 10/27/2026
- From:
- Kristine Pavlik, Housing and Grants Administrator
- Department:
- Housing
Co-Submitter:
TITLE:
Bond-Funded Community Homebuyer Assistance Program and Employer Assisted Housing Program Annual Update
DESIRED OUTCOME:
Council will hear a presentation from Housing Solutions of Northern Arizona (HSNA) regarding implementation, participation, and progress of the Bond-Funded Community Homebuyer Assistance Program (CHAP), including the Permanent Affordability Pilot, and the City of Flagstaff Employer Assisted Housing (EAH) Program.
Executive Summary:
The City of Flagstaff contracts with Housing Solutions of Northern Arizona (HSNA) to administer the Bond-Funded Community Homebuyer Assistance Program (CHAP), including the Permanent Affordability Pilot, and the Employer Assisted Housing (EAH) Program.
Bond-Funded CHAP provides up to $50,000 in matching financial assistance to eligible homebuyers and is supported by $7 million in general obligation bond funds authorized by voters through Proposition 442 in November 2022. The Permanent Affordability Pilot (CHAP-PA) provides assistance of up to 30% of the home’s purchase price in exchange for securing permanent affordability through a deed restriction or ground lease. EAH is funded through City general funds and provides up to $20,000 in matching financial down payment assistance to eligible City of Flagstaff employees.
This will be HSNA’s first annual presentation to Council under the contract, covering program implementation, participation, and financial assistance provided since the contract was signed in July 2025, with outcomes reported through September 2026. The presentation will review program guidelines, eligibility requirements, accomplishments, and challenges, with an opportunity for Council to discuss progress and provide feedback.
Bond-Funded CHAP provides up to $50,000 in matching financial assistance to eligible homebuyers and is supported by $7 million in general obligation bond funds authorized by voters through Proposition 442 in November 2022. The Permanent Affordability Pilot (CHAP-PA) provides assistance of up to 30% of the home’s purchase price in exchange for securing permanent affordability through a deed restriction or ground lease. EAH is funded through City general funds and provides up to $20,000 in matching financial down payment assistance to eligible City of Flagstaff employees.
This will be HSNA’s first annual presentation to Council under the contract, covering program implementation, participation, and financial assistance provided since the contract was signed in July 2025, with outcomes reported through September 2026. The presentation will review program guidelines, eligibility requirements, accomplishments, and challenges, with an opportunity for Council to discuss progress and provide feedback.
Information:
The City entered into a five-year professional services contract, Contract No. 2025-205, with HSNA on July 25, 2025, with the option for two one-year extensions. HSNA’s responsibilities include client intake, eligibility determination, homebuyer counseling and education, program outreach, and loan processing. City Housing Division staff coordinate with HSNA on program implementation, contract oversight, and the use of City funding.
Council approved the First Amendment on October 21, 2025, increasing the authorized administration amount from $80,000 to $500,000 and supporting expanded program administration, including the Permanent Affordability Pilot.
The contract requires HSNA to submit an annual summary report reviewing program outcomes, trends, and recommended program changes. It also requires an annual presentation to Council summarizing the previous fiscal year’s program impacts and outcomes and any proposed guideline updates. The First Amendment established a presentation deadline of no later than November 1 each year.
Previous Council and community discussions include:
Council approved the First Amendment on October 21, 2025, increasing the authorized administration amount from $80,000 to $500,000 and supporting expanded program administration, including the Permanent Affordability Pilot.
The contract requires HSNA to submit an annual summary report reviewing program outcomes, trends, and recommended program changes. It also requires an annual presentation to Council summarizing the previous fiscal year’s program impacts and outcomes and any proposed guideline updates. The First Amendment established a presentation deadline of no later than November 1 each year.
Previous Council and community discussions include:
- November 2022: Voters approved Proposition 442, including $7 million to expand homebuyer assistance.
- January–September 2024: City staff worked with the Housing Commission to develop proposed program criteria.
- October 8, 2024: Council reviewed the proposed criteria and directed staff to proceed with competitive procurement for a program administrator.
- July 25, 2025: The City entered into a professional services contract with HSNA.
- August 2025: CHAP relaunched under HSNA’s administration using affordable housing bond funding.
- October 21, 2025: Council approved the First Amendment to the professional services contract.