Phoenix City Council approved up to $5 million on Wednesday to launch a master leasing program aimed at moving dozens of people out of the shelter system and into private apartments, even if their credit history or past evictions would normally disqualify them. The city will lease units directly from landlords and then sublease them to residents who need support transitioning back into stable housing, starting with at least 50 units.
How the City Sidesteps Landlord Screening
Under the model, Phoenix pays private landlords full market-rate rent, while Milne said most master leasing programs limit tenant payments to 30% of income, according to KJZZ. Milne said the goal is self-sufficiency within one to two years. Because the city itself holds the master lease, tenants avoid the credit and eviction-history screenings that often keep people out of the private rental market, as reported by ABC15 Arizona.
Vice Mayor Kesha Hodge Washington said the program gives residents a path out of the shelter system, per the same ABC15 report, and added that she has heard from multiple property owners interested in participating. Tanner Swanson, with nonprofit A New Leaf, said putting someone into an apartment paired with rent support and employment help is an affordable and effective way to end homelessness. Swanson's organization hopes to identify shelter residents who are ready for an apartment but are held back by prior evictions or credit problems.
Who Got the Contracts
The council approved the master leasing program on September 23. A New Leaf hopes to help identify potential residents. The $5 million program combines federal funds with support from the city's Office of Homeless Solutions, according to ABC15.
A Shift From Shelter Beds to Housing Exits
Phoenix has added more than 1,600 emergency shelter beds since 2022. Separately, it has a structured outdoor camping site near downtown with capacity for up to 300 people, as Hoodline previously reported. Residents with prior evictions or low incomes may face barriers to passing traditional landlord background checks, according to the city's own account on Phoenix.gov. Master leasing is designed to remove that structural barrier rather than simply add more beds.
Phoenix reached its 2020 Housing Phoenix Plan goal of creating or preserving 50,000 housing units in December 2025, five years ahead of schedule. Council also expanded the city's Housing Trust Fund to $15 million in the current fiscal year budget to build attainable housing and prevent displacement, according to a statement from Vice Mayor Hodge Washington.
Parallel Efforts to Prevent Homelessness Before It Starts
Master leasing is not the only tool the city and county have rolled out this year. In July, Phoenix launched a separate $3.15 million Flexible Financial Assistance program offering up to $2,500 in basic-needs aid under separate eligibility rules, including residence in a Qualified Census Tract and income or benefit criteria, or a $700 package consisting of a $600 utility credit and a $100 gas card or bus pass; Medicaid or CHIP losses qualify only if they occur on or after October 1, 2026, according to Realtor.com. Maricopa County followed in August with an Eviction Prevention Pilot Program that provides high-risk households up to $3,200 in direct rental assistance to cover as much as two months of back rent.
Whether property management companies sign on quickly enough and whether the 50 pilot units can scale remain to be seen.
