Commissioners outline Flagstaff housing market, CHAP down-payment programs and inventory pressures

Commissioners Karen Flores and Jackie Kellogg presented a housing-market overview and details of down-payment assistance programs to the Flagstaff Housing Commission on June 25, 2026.

Karen Flores, a loan officer with Barrett Financial and a commission member, reviewed loan-product limits and affordability parameters: conventional conforming loan limits around $832,750, FHA limits near $609,500, VA loans with no maximum, and USDA loans restricted to rural properties outside city limits. She emphasized that program rules and income calculations affect who can use down-payment assistance programs.

Jackie Kellogg and Flores described Housing Solutions of Northern Arizona27s CHAP (Community Homebuyer Assistance Program). Kellogg said CHAP provides up to $50,000 in matching assistance (a stated 10-to-1 match up to $50,000) that may be applied to down payment, closing costs or rate buydowns. Kellogg explained CHAP uses income and debt-to-income (DTI) caps intended to keep assisted buyers in sustainable payment ranges: housing ratios are capped around 3035% and maximum DTI is ~45% for assisted borrowers, and CHAP assistance is fully repayable so the program remains a revolving fund.

The presenters also described a permanent-homebuyer assistance pilot that converts resale properties into land-trust homes: the city would apply a 30% reduction to a market sale price (Kellogg gave a $500,000 example reduced to $350,000) so buyer loan amounts and down-payment needs are based on the reduced price, and the property remains under long-term resale restrictions.

Flores and Kellogg ran affordability examples by housing type: average single-family sale prices were presented at about $814,000 (example total payments around $5,800/month without assistance); condos averaged $427,000 (with typical HOA fees cited near $250/month); townhomes averaged near $585,000; manufactured homes averaged about $437,000; and mobile homes averaged roughly $120,000 but include space rent (~$1,200/month) and typically higher interest and shorter loan terms. Flores highlighted that local wages do not match home prices and that even with CHAP funds, many typical household income levels would be insufficient to qualify for median-priced single-family homes.

Inventory figures presented: 277 active residential listings citywide; 75 under $500,000; 128 between $500,000 and $1,000,000; 74 over $1,000,000; and a market median active price of about $720,000. Year-to-date sales counts and averages were also provided for housing types (single-family, condos, townhomes, manufactured and mobile homes).

Commissioners and staff discussed program eligibility and operational details: CHAP27s assistance is repayable on sale or cash-out refinance, most CHAP-eligible loans must be conforming fixed-rate mortgages under loan limits, and CHAP calculations must include household members' incomes even if they are not on the loan. Kellogg said the first CHAP permanent-homebuyer closing occurred this month and that Housing Solutions launched CHAP assistance in November 2025.

The presenters and commissioners connected program details to workforce retention and affordability policy: presenters said local wages for many service, tourism and skilled-trades occupations are far below levels needed to purchase median-priced homes in Flagstaff, reinforcing the need for a variety of ownership and rental affordability tools.

Commissioners thanked the presenters; no ordinance or council vote on program expansion was taken at the meeting.