Phoenix is planning a new program to sublet apartments to people exiting homelessness

The city of Phoenix is preparing to launch a new subletting program to help unhoused people get into apartments faster.

When someone is trying to exit homelessness, it can be difficult to break into Phoenix’s tight rental market, said Rachel Milne, director of Phoenix’s Office of Homeless Solutions.

“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 told KJZZ.

So in the city budget approved in June, Phoenix City Council allocated $2.5 million annually for a new master lease program. The Office of Homeless Solutions will use that funding to rent about 50 apartments. Then the city will have those units available to sublet to people coming out of shelters.

“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,” Milne said.

Other big cities, including New York City and Los Angeles, have adopted master lease programs, but Milne said this will be a first for the city of 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 said.

Milne said the city will pay private landlords the full market rate to rent apartments. Details of the program are still being finalized, but she said she expects the Office of Homeless Solutions will subsidize rent prices for many participating tenants.

“Most master leasing programs, people wouldn’t pay more than 30% of their income,” Milne said.

Milne said the Office of Homeless Solutions also plans to provide tenants with other types of counseling or support as they transition out of homelessness.

The city has not yet announced a start date for the program, but Milne said she hopes to launch it as soon as possible.

“We’re off and running,” Milne said. “We’re looking for units currently.”