Consideration and Adoption of Resolution No. 2026-55: A resolution of the Flagstaff City Council, authorizing the submission of a Rental Assistance Demonstration (RAD) Program portfolio application to the U.S. Department of Housing and Urban Development (HUD) to allow for conversion and redevelopment of the City of Flagstaff public housing portfolio; providing for delegation of authority, direction for further actions, and establishing an effective date
 

1. Read Resolution No. 2026-55 by title only
2. City Clerk reads Resolution No. 2026-55 by title only (if approved above)
3. Adopt Resolution No. 2026-55

The City of Flagstaff Housing Authority (CFHA) is pursuing an application to the U.S. Department of Housing and Urban Development’s (HUD) Rental Assistance Demonstration (RAD) program to preserve and redevelop its public housing portfolio and create opportunities to expand affordable housing. The proposed resolution directs the Housing Director or their designee to submit an application to HUD for the RAD program and pursue redevelopment of the Flagstaff public housing portfolio. The resolution also provides delegation of authority to various city staff in order to advance the project, and directs staff to take further actions subject to the City Charter, City Code, procurement procedures, and applicable laws.

Adoption of the resolution authorizes CFHA to pursue the RAD application and redevelopment process. Project costs, financing, and funding commitments will be determined as planning progresses and are dependent on a development partner’s contributions.

Project Name: Rental Assistance Demonstration (RAD)
Cost: To be determined
Account Number Budgeted: 411-13-105-0352-4-4290
FY Budgeted Amount: $5 Million
Grant Funded: To be determined
Funding Source: To be determined

Additionally, CFHA receives federal subsidies and rental income that can be directed towards this project once expenses are met. This number varies year by year due to the unpredictability of federal funding and necessary Housing Authority expenses.

None.

• October 2026: City Council received an overview of the RAD program during a work session on October 27. The CFHA Board of Commissioners adopted Resolution No. 2026-06 on October 15, recommending that City Council authorize the RAD application and public housing redevelopment, with CFHA serving as developer/co-developer and authorized to pursue necessary implementation actions and use designated housing funds. In addition, CFHA public housing residents received a presentation at two different times on October 14 regarding the program, potential redevelopment, resident rights and protections, the anticipated process, and opportunities for ongoing communication and involvement. Stakeholders leasing space from CFHA met with Housing staff to learn more about the program and to ask questions. (After further legal review in late October 2026, the form of resolution was modified to reflect Charter, Code, and Procurement Manual limits on the delegation of authority, and this modified version is being presented for Council consideration.)
• January 2026: City Council approved a Consultant Services Agreement to support the RAD program, including project management, financial feasibility analysis, development partner procurement support, and funding strategy coordination.
• November 2022: Flagstaff voters approved Proposition 442, authorizing the City of Flagstaff to use $5 million to leverage, in partnership with the private sector and HUD, the redevelopment CFHA’s public housing stock. 

•    Adopt Resolution No. 2026-55 as recommended.
•    Reject the resolution, in which case CFHA would not proceed with the RAD application under the proposed authorization.

CFHA owns and operates 265 public housing units. The City is pursuing repositioning and redevelopment of this portfolio through HUD’s RAD program to preserve existing affordable housing and create at least twice as many affordable housing units available to local residents.

RAD allows eligible public housing properties to convert to a long-term, project-based Section 8 rental assistance contract. This conversion provides access to more stable funding and private financing for rehabilitation and redevelopment while maintaining long-term affordability and applicable resident protections.

The repositioning and redevelopment process is expected to take multiple years and includes financial feasibility analysis, development partner selection, financing strategies, project planning and implementation. A Request for Proposals to identify a development partner was published on the City’s website November 3, 2026.

No current public housing resident will lose housing or housing benefit at any point during or after the redevelopment. Two different public meetings were held for public housing residents on October 14 regarding the program, potential redevelopment, resident rights and protections, the anticipated process, and opportunities for ongoing communication and involvement.

Livable Community: Actively support attainable & affordable housing through City projects & opportunities with developers.

Goal NH.3. Make available a variety of housing types at different price points, to provide housing opportunities 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.3.3. Increase the availability of affordable housing for very low-income persons, through innovative and effective funding mechanisms.
• Policy NH.3.5. Encourage and incentivize affordable housing.

• 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.
• HA-4: Protect people from housing discrimination and remove housing barriers.

The proposed action supports the City’s 10-Year Housing Plan, including the following policy initiatives:

• Create 1: Incentivize the creation of affordable units through various programs and mechanisms.
• Preserve 2: Expand efforts to preserve existing housing stock.
• Protect 2: Ensure affordable housing is a part of every Flagstaff neighborhood and work to address disparate impact as part of any development or redevelopment.

Supports Housing Division efforts to preserve existing affordable housing, expand housing opportunities, and implement the City’s 10-Year Housing Plan.

Supports goals in both the Housing Authority's 5-year and Annual Plans.