The Phoenix City Council has approved a spending plan for $15 million from the Housing Trust Fund (HTF) to enhance affordable housing initiatives, support homeownership, and reduce barriers to housing development. This fund, established in 2025, aims to address the city’s ongoing housing challenges and aligns with the Housing Phoenix Plan (HPP) to increase housing availability.
Details of the Funding Allocations
The approved allocations focus on six key priorities to effectively utilize the $15 million in resources:
- $6 million for Affordable Housing Gap Financing: This funding will provide low-interest loans to private and nonprofit developers to help close financing gaps in affordable housing projects, with individual projects eligible for up to $1 million.
- $4 million for City Housing Redevelopment Projects: The funding will support redevelopment initiatives on City-owned properties through low-interest loans, which will be repaid to fund future projects.
- $2 million to Offset Plan Review and Permit Fees: The city will help cover fees for qualifying affordable housing developments, offering up to $300,000 for eligible low-income tax credit projects.
- $1 million for Pre-Approved Housing Plans: This allocation will fund pre-approved plans for various housing types, available at no cost to property owners, aiming to streamline permitting and reduce construction costs.
- $1 million for Homeownership Programs: This initiative will support new homebuyers with down payment assistance and create permanently affordable homeownership opportunities.
- $1 million for Eviction Prevention: In partnership with the Human Services Department, this funding will support the Eviction Legal Services program to help stabilize households and prevent displacement.
Supporting the Housing Phoenix Plan
These investments build on the Housing Phoenix Plan’s success, which has already facilitated the creation or preservation of over 71,000 housing units, exceeding its initial goal of 50,000 units. The plan’s achievements stem from various initiatives, such as redeveloping city-owned land and fostering public-private partnerships.
The new funding priorities aim to address a significant deficit of 59,000 affordable rental units for households in need. Vice Mayor Kesha Hodge Washington emphasized the importance of making housing a priority to achieve meaningful results, stating, “When we make housing a priority, we can achieve meaningful results.”
Councilwoman Ann O’Brien highlighted the need for policies that simplify the construction process, expressing that the plan’s gap financing and reduced fees are vital for increasing housing availability. District 7 Councilwoman Anna Hernandez reinforced the notion that housing is a right, underscoring the fund’s potential to provide essential support to families in need.
Source: City of Phoenix
