City of Flagstaff Notice of Funding Availability

Flagstaff's 10-Year Housing Plan’s vision is to create a vibrant and more livable community through increased housing options for residents at all income levels and all family sizes. The Plan establishes one overarching goal supported by two fundamental elements that together will significantly impact housing attainability.

The overarching goal of the 10-Year Housing Plan is to reduce the current affordable housing need in our community by half over the next ten years. This will be achieved through two elements:

• Element one: Impact at least 6,000 low-to-moderate income Flagstaff residents through a combination of unit creation or subsidy provision.
• Element two: Create or preserve 7,976 housing units by 2031 with a minimum of 10% of them being affordable. This will increase the overall supply of market rate, workforce, and affordable housing occupied by Flagstaff residents.

The City of Flagstaff is pleased to announce the availability of $1,650,000 in general obligation bond funding to support the delivery of affordable rental housing in Flagstaff.

The Rental Incentive Bond Program was established to utilize bond funds for the purpose of incentivizing the private sector, including non-profits, to incorporate affordable rental housing into new residential developments.

Rental Incentive Bond Program Description

The City of Flagstaff has a total of $1.65 million in general obligation bond funding available for the Rental Incentive Bond Program through this Notice of Funding Availability (NOFA) application. This is a competitive application process. Applications that meet the minimum threshold criteria are not guaranteed an award of funds and successful applications may be funded for less than the amount requested.

A ranking committee will evaluate applications proposing the greatest number of affordable units while maximizing limited bond funds with other leveraged funding. If, after the initial NOFA, there are remaining or returned program funds, an application process will be repeated as needed. Expenditure of program funds is limited to costs directly incurred by the developer in pre-development and construction of affordable rental housing. Applications must include information related to prior experience developing similar rental projects and demonstrate project readiness by providing evidence of any and all plan approvals. Projects that have received certificates of occupancy for any units or buildings at the time of the application deadline are ineligible for funding. All funding commitments secured by the developer and identified in the application must be confirmed in writing. Applications that do not meet the minimum threshold criteria will not be eligible for funding.