Prescott approves $104K-$143K workforce housing manager, $58K NAU research grant
PRESCOTT, ARIZONA — October 4, 2023

Prescott approves $104K-$143K workforce housing manager, $58K NAU research grant

A Workforce Housing Committee discussed a $58,000 NAU research grant on affordable housing for first responders, proposed hiring a dedicated project manager, and developed community outreach strategies to combat NIMBYism while addressing severe recruitment challenges in fire, police, and essential services.

Northern Arizona University Attainable Housing Study Meets KAFMA Crisis; Committee Pivots to Hiring, Community Outreach, and Marketing

Prescott's Workforce Housing Committee convened on October 4, 2023, to absorb findings from a $58,000 Board of Regents–funded research initiative into attainable housing for first responders and essential workers, approve a full-time staff position to drive implementation, and sketch out a public education campaign designed to combat what members called "NIMBYism" and community confusion between workforce housing and low-income/Section 8 housing. The meeting revealed a labor crisis deeper than many assumed—KAFMA (Karfma) fire district unable to fill 132 authorized positions for four to five years—and a determination by the committee to move from study into action.

Key Speeches

"The biggest challenge we face in this area is the lack of attainable housing and trying to attract new employees new recruits up into the area that don't live here because there's not a good solid pipeline of Personnel in the system right now… and the loss of a firefighter if we train them and we lose them after a year cost our agencies similar to the city of Prescott about a hundred thousand dollars." — Fire Chief Freitag, KAFMA

"If you own the property then you can control the cost of the units on the property… as a fire district we have one source of funding I'm simply trying to survive right now and to be able to provide the Personnel I need because we took a hit in our insurance service office rating I'm trying to buy equipment that's gone up from 650,000 in 2020 to 1.1 million in 2023 I can't buy property I just can't do it." — Fire Chief Freitag

"I entered the fire service in 74. made 938 bucks a month and housing was a problem then and the way we cured it on my department is like you said all the guys came from the trades so we had sign up lists and you had to do two times so I go help you build your house and I went and helped you build this house and then you came and built my house and we cut 50 of the construction costs out of building that home." — Committee Member (Long-serving fire official), describing 1970s labor-exchange model

"I feel strongly… that we need a full-time person a staff person Amber's got lots of other duties at the city, Chelsea has lots of other duties and between investigating what grants are available pursuing grants working with developers… if we're serious about really addressing the issue… we need someone that's going to do the work um so I would like to go to the city manager." — Chair Fan, proposing dedicated position

"The fear of the unknown is exactly what motivates and drives the nimbies if you will and if we can do you know have an actual prototype have some good photography taken of an area that's been done and done well I think it's very important in this case… we're not talking about a Barren piece of dirt that's going to have trailers on it." — Committee Member (Randy Goodman or similar), on prototype strategy

Timeline

Opposition

No organized public opposition was present or voiced at the meeting. However, committee members referenced community resistance encountered in prior weeks:

Support

No formal support speakers presented. Committee members and city staff were largely unified in endorsing the research effort and hiring recommendation.

Project Details

Vote Breakdown

Outcome & Next Steps

Chair Fan's proposal to request city manager approval and funding for a full-time Workforce Housing Project Manager position (salary range $104,000–$143,000 including benefits) received committee endorsement. Chair Fan will meet with the city manager to discuss feasibility and timeline.

Study session scheduled for November 16, 2023, 10 a.m.–noon in the same room to develop:

Public education and outreach plan to be developed, including:

General Plan housing-element update to be advanced with committee input; Tammy DeWitt (Community Planner) leading; survey data collection ongoing (target expanded responses); implementation section with quarterly reporting to council and Planning & Zoning Commission.

NAU research results expected in approximately 10 months (early 2024).

Controversies & Context

Community Resistance to Workforce Housing Projects:

Committee members cited recent community opposition to workforce-housing-related development, most notably at a Wilhoit area meeting where residents opposed a developer's plan that included a donation of land to fire and EMS services. Opposition centered on water-supply depletion, highway congestion, and property-value concerns—concerns that existed before residents understood the workforce-housing component. One committee member noted that the developer was actively considering discounting parcels for workforce employees but had not raised this at the public meeting.

Confusion Between Housing Categories:

Multiple committee members and staff stressed that public confusion between "workforce housing" (attainable housing for essential workers at entry-level wages) and "affordable housing" / "Section 8 housing" / "homeless housing" is a major driver of opposition. Several expressed concern that residents fear the introduction of subsidized low-income or homeless housing when the actual proposal is workforce housing for nurses, firefighters, teachers, and police—professionals the community already values. Committee member noted 95% of emails to his city email address asked for a definition of "workforce housing," suggesting substantial community unfamiliarity.

NIMBYism and "Fear of the Unknown":

Committee identified visual anxiety as a key factor: residents immediately conjure images of "trailers sitting in barren ground" without seeing actual designs, landscaping, or buffering. One committee member emphasized that prototype renderings and photography of successful projects elsewhere are essential to overcome this psychological barrier and demonstrate that workforce housing can be attractive and community-compatible.

Staffing Crisis and Recruitment/Retention:

Fire Chief Freitag painted a stark picture: KAFMA has 132 authorized positions with many unfilled due to inability to recruit and retain personnel. Challenges include:

Historical Labor-Exchange Model and Its Limits:

A committee member with fire-service experience dating to 1974 described an organized labor-exchange system where firefighters helped each other build homes, reducing construction costs by 50%. The model is still used today but faces modern barriers: supply-chain disruptions, rising material costs, labor scarcity for subcontractors, and lack of available properties. Fire Chief Freitag noted that a few current KAFMA employees are using this approach, but some found themselves living in fifth wheels while waiting for construction to complete due to supply delays and interest-rate pressures.

Cadet Program as Workforce Development and Retention Tool:

Fire Chief Freitag proposed a multi-year cadet program (targeting high school and early college) that combines fire/EMS training with financial literacy, trades education, leadership development, and entrepreneurship exposure (guest speakers including Brad Fain and Ron Fain). NAU researchers regarded this as potentially one of the key tools for recruitment/retention because it builds a pipeline of candidates who grow up in the community, develop commitment, and may start side businesses (real estate, construction) during firefighter off-days. The approach also addresses the shift from hiring experienced reserves (who already know the profession) to hiring career-switchers who may leave after six months.

State and Federal Grant Limitations:

Fire Chief Freitag noted that the state of Arizona allocated $5 million through the Department of Forestry and Fire Management for grants to agencies, but as of the meeting date, the state had provided no guidance and no funds have been distributed. Existing grants are typically small, one-time expenditures (e.g., purchase of alternative response units) and do not support housing or workforce assistance. No state programs exist to help first responders, nurses, or teachers purchase homes or obtain down-payment assistance. One committee member suggested exploring congressional earmarks (directed spending) to create grant programs for interest-buydown or down-payment assistance in Arizona—an idea that drew support ("you don't know unless you ask").

Mortgage Industry Changes:

A committee member with mortgage-banking background noted that old strategies (temporary buydowns, point-buying) are no longer effective under current lending regulations; temporary buydowns no longer enhance loan qualification, only cash flow. This limits creative financing options for workforce-housing buyers.

Specialized Workforce-Housing Developer Model:

Committee members emphasized the need to invite companies specializing in workforce housing to present business models and financing strategies. These entities often own the property, control costs, subsidize units for workforce employees, and leverage tax-write-offs. The City of Cottonwood and Northern Arizona Housing Solutions were cited as examples. Committee noted that large employers (hospitals) can also structure down-payment assistance or forgiveness programs with tax benefits.

Dedicated Staff Capacity:

Underlying much discussion was frustration that current city staff (Amber and Chelsea, referenced but not by full title) wear too many hats to give workforce housing the attention it requires. One committee member compared the need to the role of a CDBG (Community Development Block Grant) administrator who is funded by federal program admin costs to dedicate full-time attention to grant management and inter-agency coordination. Committee members agreed that a dedicated project manager is essential to success and that volunteering hours by committee members cannot scale to meet the workload.

Duration

Other Notable Items

Minutes Approval: Minutes from the prior meeting approved unanimously without objection or discussion.

General Plan Housing-Element Update Study Session: Community Planner Tammy DeWitt outlined the housing-element framework to be developed at the November 16 study session. The city website planprescott.com has been established with a separate email address ([email protected]) for housing-related comments. Survey data collection is underway (77+ employee responses, 8 organization responses); committee asked to defer full survey results presentation until after the study session to allow more time for responses. Integration of mission/vision, goals, strategies, and implementation accountability measures will tie the committee's work directly into the city's official comprehensive plan and create quarterly reporting to the city council and Planning & Zoning Commission.

Study Session Agenda Refinement: Chair Fan requested that committee members narrow focus to specific priorities before the November 16 session, moving from a "shotgun blast" of issues to a "rifle shot" approach with realistic, achievable objectives.