Cottonwood Housing Manager Shannon Boone gave a housing presentation at the Cottonwood Community Awareness Group meeting on Nov. 28.
Boone defined affordable housing as housing that costs no more than 30% of a household’s total income. Cottonwood’s median household income is $39,437, so half of the households in the city are earning less than that amount. Camp Verde has a median income of around $46,500, Yavapai County has a median income of around $56,000 and the United States has a median income of around $69,000.
Subsidized housing is housing that is built, acquired or sustained with government funding. Low-income housing is affordable to households earning less than 80% of median income, which in Cottonwood is about $31,500. Workforce housing is housing that is affordable to households earning more than 80% of the median income but not earning enough to afford a house at the market rate.
Boone said that over 2,000 households in the city need housing that costs less than $625 a month, but the city doesn’t have much, if any, housing at that price, while less than 25% of households in the city can afford a monthly payment higher than $1,875, which is the current market rate. 2,135 out of 5,253 households are housing cost-burdened, meaning that the housing cost is over 30% of the household’s income, while another 18% pay 50% of their household income towards housing.
The total five-year housing demand for the Verde Valley is over 3,700 units.
Boone argued the low housing supply has resulted from the lack of buildable land and infrastructure outside of the city, policies such as building and zoning codes, economic conditions such as the cost of labor and materials, interest rates and state legal barriers such as the lack of regulation of short-term rentals. With limited buildable land within city limits and a lack of infrastructure outside city limits, developers are faced with the challenges of building their own sewer, water supply and other necessities, which is very costly.
There are currently no projects in the Verde Valley to address homelessness, although the Verde Valley Homeless Coalition provides an emergency shelter. Steps to Recovery and the Verde Valley Sanctuary provide supportive housing. The Verde Valley Homeless Coalition has four recently-acquired units of transitional housing and Housing Solutions of Northern Arizona is converting a hotel into transitional housing.
The city is renovating and constructing new units at Verde Plaza. Fiftytwo units have been renovated and 18 new units will be constructed in two new buildings at a cost of almost $25 million.
Habitat for Humanity is currently constructing one unit. For market rentals, 477 units have been approved and 192 are being constructed. For market home ownership, 807 units have been approved and 88 are being constructed.
An attendee inquired about the Inspiration apartment complex on State Route 89A. Boone said that the apartments are listed around $2,000 per unit yet are not close to being fully leased, resulting in a recent price drop per unit.
Boone stated that the private sector is building homes for population growth and vacation homes, so many young people starting new households have resorted to either living with their parents or leaving the area.
The creation of new and better paying jobs is difficult as employers see that there is not affordable housing for their workers, resulting in a lull in economic development. Employers also find it difficult to fill their lower paying positions, especially in tourism and retail.
Boone added that residents need to show up to city council meetings if they support an issue or housing development. Residents shouldn’t only go to meetings if they’re opposed to something but should also go to show their support.
