FLAGSTAFF, Ariz. — The Flagstaff City Council has recently approved more than $3 million in bond funding to create 139 affordable rental units in a city that has become one of the most expensive places for housing in Arizona.
After Flagstaff voters approved a proposition authorizing the use of bond money for housing projects, the city moved forward with providing $3.3 million in bond funding for rental units in downtown Flagstaff by the Foundation for Senior Living.
The funding will go towards two separate complexes: one serving seniors earning up to 80% of the area median income and the other serving individuals or families earning up to 60% of the area median income.
Flagstaff's bond money was authorized through a program that provides loans to eligible developers of rental housing who guarantee a certain amount of affordable units.
The project supports Flagstaff's 10-year plan to create or preserve nearly 8,000 housing units by 2031 and 10% of those units being affordable.
Flagstaff's announcement comes as the northern Arizona city has been grappling with housing issues. The situation got so dire that the city council declared a housing emergency a few years ago.
The city was listed as one of the most expensive small metro areas in the U.S. for rental prices with a median price listed at $2,153, according to a November report from Construction Coverage.
The average cost for renting a studio apartment in Flagstaff has increased by 23%, according to a 2023 survey conducted by Housing Solutions of Northern Arizona.
Zillow lists Flagstaff's average home price at $646,425, which is higher than the average home prices listed in Phoenix, Mesa, Tucson, Prescott, Globe, Tempe, Peoria, Chandler, Gilbert and Oro Valley.
>> Download the 12News app for the latest local breaking news straight to your phone.
UP TO SPEED
Catch up on the latest news and stories on the 12News YouTube channel. Subscribe today.