Phoenix Launches Subletting Program to Aid Unhoused in Rental Market

Phoenix Introduces Pioneering Subletting Initiative for the Unhoused

In an effort to address the challenges faced by unhoused individuals, Phoenix is set to roll out an innovative subletting program aimed at expediting their transition into stable housing. As the city’s rental market remains highly competitive, Rachel Milne from Phoenix’s Office of Homeless Solutions highlights the need for additional support for those ready to move out of shelters.

“We’re working with clients all day long in our shelter programs that are ready to be housed, but just need that little bit of support,” Milne shared with KJZZ.

The initiative, funded by a $2.5 million annual allocation included in the city budget approved in June, will see the city rent approximately 50 apartments. These units will then be sublet to individuals transitioning from homelessness, providing them with a unique opportunity to lease directly from the city.

Milne noted, “They may have had trouble on the private market obtaining a lease, but this way they’re leasing directly from the city of Phoenix Office of Homeless Solutions.”

While other metropolitan areas like New York City and Los Angeles have implemented similar master lease strategies, this marks a first for Phoenix. “Housing is such an important part of ending someone’s homelessness. This is one piece of that puzzle that we’re excited to get going,” Milne added.

Under the program, the city plans to pay landlords the standard market rate for the apartments, with the Office of Homeless Solutions potentially subsidizing rents for many tenants. “Most master leasing programs, people wouldn’t pay more than 30% of their income,” explained Milne.

Beyond housing, the program aims to provide comprehensive support, including counseling to assist tenants as they transition from homelessness. Although a launch date has not been officially set, Milne expressed eagerness to begin, stating, “We’re off and running. We’re looking for units currently.”