The Sedona City Council chose not to formally adopt the city's Balanced Housing Strategy on Oct. 13. Instead, the council directed staff to develop individual components of the plan, such as a land trust partnership and a down payment assistance program, for separate approval. This approach aims to advance specific housing initiatives while the broader strategy continues to take shape.
The Balanced Housing Strategy has a 10-year objective to create 775 new housing units, with 600 designated for working-age households and 175 for seniors. Toward this target, 221 units across six projects are currently approved, in the design process, or under construction. However, only 30 of these units are presently completed, with the opening of the Villas on Shelby. City staff aims for a slight majority of the total 775 units to be ownership opportunities.
A key program being developed is a down payment assistance initiative, which is in its early planning stages and would require final council approval. This program proposes offering up to $150,000 per buyer. A significant condition of this assistance is that the housing unit must become permanent affordable housing by being placed into a land trust. Allender stated that the goal would be to place about 300 units in a land trust, a target Interim Mayor Holli Ploog described as “daunting.” Allender emphasized that this approach could allow the city to pay once for a unit that remains affordable for future generations, comparable to deed restriction programs used elsewhere. While no partner has been named to administer the program, Housing Solutions of Northern Arizona and the Verde Valley Community Land Trust have been mentioned in previous discussions. Allender expressed optimism that the city’s housing targets could be met without developing the Dells by Sedona’s Wastewater Treatment Plant, contingent on the popularity of the down payment assistance program.
In a related action, the council directed the Community Development Department to proceed with a request for proposals for housing development on two city-owned parcels. This initiative falls under Strategy 10 of the broader plan, focusing on using public land and strategic land acquisition to facilitate new housing. The parcels are Sunset Lofts at 220 Sunset Drive and 2411 W. State Route 89A.
The 1.8-acre property at 2411 W. State Route 89A, located next to Builders FirstSource in West Sedona, was approved for purchase by the council on Jan. 28, 2025. Acquired from the Dahya Revocable Family Trust of California for $1.99 million, the land is zoned commercial, which permits multifamily housing development. The Sunset Lofts parcel has a longer history; it was initially approved as a 46-unit project by the Planning and Zoning Commission on Sept. 6, 2022. However, the developer did not break ground by April 1, 2024, resulting in the parcel being deeded back to the city.
The Balanced Housing Strategy was last discussed by the council on Sept. 8. Since that time, the number of proposed strategies has been reduced from 22 to 18, and the number of proposed actions from 46 to 3, reflecting ongoing refinement.
The Community Development Department also recommends discontinuing two existing programs due to lack of interest: the Voluntary STR Deed Restriction program and the Rent Local program. Both programs have been utilized on 14 properties.
During discussions, council members engaged in a debate over the nature of the document itself, questioning whether it should be considered a strategy, a framework, or simply a list of projects. Concerns were raised about whether adopting the strategy would legally bind the city to programs whose specific details had yet to be fully defined. Councilman Derek Pfaff advocated for adopting the Balanced Housing plan, urging his colleagues to make a definitive decision. Pfaff stated that “at some point we’ve got to make a decision.” Interim Mayor Ploog voiced apprehension about adopting a document that might become an unchangeable “north star” for city staff, potentially limiting future flexibility.
