Flagstaff City Council approves $3.3M for 139 affordable rental units downtown

FLAGSTAFF — In the latest attempt to address northern Arizona's affordable housing crisis, Flagstaff City Council approved $3.3 million to assist in building 139 affordable rental units in downtown Flagstaff.

The funding will be utilized by the Foundation for Senior Living for two new apartment buildings.

The San Francisco Square Apartments will serve seniors earning up to 80% of the area median income. The Aspen Lofts Apartments will serve individuals and families earning up to 60% of the area's median income. The median household income in Flagstaff is $65,652, according to the most recent census data.

"These two projects taken together are going to have a huge positive impact on seniors and families in our community," Flagstaff Mayor Becky Daggett said. "I can't wait to help welcome our neighbors to their new homes."

The funding comes from the Rental Incentive Bond Program. That's the byproduct of Proposition 442 passed by Flagstaff voters in 2022, which authorized the use of general obligation bonds to create rental and ownership opportunities for city residents.

The Rental Incentive Bond Program provides loans to eligible rental housing developers that include a minimum 10% affordable units in new rental projects serving households at or below 80% of area median income.

Following the award for these projects, the program has $1.67 million remaining in available funds for future developments.

Reach the reporter at LLatch@gannett.com.

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