Yavapai News

In August 2022, the Sedona City Council established a "Rent Local" program, aimed at the almost 15% of Sedona housing that has been converted to short-term rentals with the goal of incentivizing property owners to rent their properties to local workers, according to the city council website. Through the program, "homeowners of registered short-term rentals who provide at least a one-year lease to a local worker (or a qualifying displaced long-term resident) can receive a cash incentive to not only 'rent local,' but also to refrain from short-term rental for one year."

Arizona Free Enterprise Club President Scott Mussi questioned the legality of the program and said that he believes that it is probably unconstitutional. 

"I don’t see how they can be paying people to not list their homes and I think something like this would be a violation of the gift clause in our constitution," Mussi told Yavapai News.

Yavapai News previously reported that as of April 21 this year, six homeowners had applied to the program, and only one was approved and received the cash incentive, according to data obtained via a Freedom of Information Act request. The program has paid out a total of $4,250.

Mussi said that the low enrollment was "because the inducements they’re offering aren’t enough for people to surrender their rights to do short-term rentals." 

Cash incentives for participation in the program range from $3,000 per year for a one-bedroom with shared living spaces to $10,000 per year for a three-bedroom with a private entry, bathroom, and kitchen, according to the city council website. To receive the cash incentive, the property owner must submit documentation detailing a lease of at least one year with a local worker.