Cedar Woods Townhomes
A development of CHOICES AZ, Inc.

Executive Summary

Recently, Choices AZ, Inc. received preliminary plat approval from the City of Prescott to build an 18-townhome project. Choices is working to create homes at a price reasonable for working families earning 80 percent of median income to purchase. Other cost reduction is being accomplished with private donations, donated in-kind services and contractor discounts. (See “The Project” below.)

The quad-cities of Yavapai County are one of the fastest areas of growth in Arizona. Prescott has the third highest median price homes in the state behind Sedona and Flagstaff. However wages for police officers, teachers, nurses and firefighters are among Arizona’s lowest. Attracting employees for these vital services is challenging when there are no homes within their reach to purchase.

Although there are low-cost senior homes and Habitat for Humanity has built homes for low-income people, little has been done to develop homeownership for median-income families working in the quad-city area. The high cost of land, the escalating price of building materials and increasing municipal fees, have made it undesirable for developers to build housing that working families have enough money to purchase.

The Project

It is a well-known fact that homeownership is the fastest way for a family to build financial security. Additionally, children raised in a home owned by the family, achieve higher scholastic scores and are less likely to get involved in alcohol and drugs or commit crime than those raised in rental homes. Homeowners contribute to the social viability of their community by taking pride in their home and neighborhood and by their involvement in local activities.

Target Population

A study, recently published by the Arizona Department of Housing using 2007 figures, illustrates the hourly wage needed to purchase a median price home in many of Arizona’s cities. In Prescott, a family would have to earn $48.68 an hour to purchase a median priced home. Firefighters, healthcare workers, police officers and teachers earn less than half this amount. The study also estimates that when housing costs force employees to live a distance from their work place, they spend as much as $5,000 annually in travel expense.

In the process of finding qualified buyers, Choices plans to offer homebuyer education and financial counseling to ensure successful homeownership. Additionally, these programs will assist those that are not credit-worthy improve their credit scores for future purchase opportunities.

Last year, the city of Prescott was accepting applications to fill the position of fire chief. Of the three finalists, one withdrew his submission because home prices were out of range for the salary offered. Recently, the same scenario occurred in searching for a new Director of Parks and Recreation. Local colleges and health care facilities have experienced similar difficulties in attracting qualified staff. And, it comes as no surprise that, in the classified section of the Daily Courier, ads for the health care fields far outnumber all of the others.

Summary

As the ageing population grows, services are diminishing due to lack of a qualified workforce. It is Choices goal to attract more service providers by developing homeownership opportunities for median-wage workers, Choices, Inc. is submitting this proposal to request grant funds to offset the gap between the cost to develop Cedar Woods and a selling price affordable to accomplish its mission, which is to Create Homeownership Opportunities Insuring Community Economic Stability in the quad-city area of Yavapai County.