Flagstaff housing staff report: housing section to become division; council approves homebuyer assistance changes and contract increase

City housing staff reported several administrative updates to the Flagstaff City Housing Commission, including a governance change, contract increases to support homebuyer assistance, a special election date for a regional land-use plan, and an administrative vote earlier in the meeting to approve commission minutes.

Justina Costa, assistant housing director, said City Council read — for the first time — an ordinance to change the City’s organizational structure so that the housing section becomes the Housing Division and will report to the city manager’s office. Costa said the change will move housing oversight from the prior Community Development reporting line to the city manager.

Adriana Fisher, housing program manager, told the commission that at the recent City Council meeting the council approved proposed changes to the Community Homebuyer Assistance Program and approved an increase in the contract for Housing Solutions of Northern Arizona. The contract increase raises administrative fees from $80,000 to $500,000 over the next seven years, Fisher said, to support program administration. Fisher also described a newly approved permanent-affordability pilot that will allow first-time homebuyers to receive deeper assistance — “up to 30% of a qualified home's purchase price” — in exchange for recorded permanent affordability controls on the property.

Fisher also reported that the regional land-use plan (regional plan) will appear on a special mail-in election scheduled for May 19, 2026; staff later confirmed that if the ballot question fails the city would continue to use the 2014 regional plan and would need to determine next steps with the Board of Supervisors and planning staff.

Commission staff noted that the Housing Authority board did not meet this month because of a last-minute agenda error; no urgent action items were pending so the meeting was postponed. Assistant staff also encouraged commissioners to participate in upcoming public engagement opportunities for the consolidated plan and to share stakeholder and resident surveys.

Procedural action: the commission approved the minutes from last month’s meeting on a motion by Commissioner Karen Flores, seconded by Commissioner Zaroyal; the motion passed with all voting in favor and no abstentions recorded.

A staff communications update included Housing America Month outreach: Aiden Rutledge and others are posting affordability spotlights and updating the city website pages on homebuyer assistance and affordable rentals.