Habitat for Humanity of Northern Arizona has begun a new program designed to help ease Flagstaff’s affordable housing crisis. It focuses on placing residents in starter homes rather than long-term housing that’s been the organization's longtime focus.
The program offers lower income families and individuals a way to own a home. With a one thousand dollar down payment and similar or lower monthly mortgage payments, normally disadvantaged buyers can own a 500-square foot starter home. The program requires buyers to live in the homes between three and ten years, and as part of the agreement, the home is sold back to Habitat for Humanity with the money returning to the original buyer. Eric Wolverton is the Executive Director of Habitat for Humanity of Northern Arizona.
"Because habitat furnishes all of our home loans with zero percent interest financing, that means that starter homeowners are going to save $10,000 in equity every year starting year one," Wolverton Says.
In the last decade, the median sales price of a home in Flagstaff rose nearly 170 percent while median income rose by 36 percent. According to Arizona State University's Morrison Institute for Public Policy, it's resulted in lower income households paying more than a third of their income to housing.
Meanwhile, Flagstaff voters will weigh in on Proposition 442 during the November 8th General Election. It would authorize 20 million dollars in bonds in an effort to create more rental and homeownership opportunities in the city.