The commission agreed to retain the city’s State Housing Initiatives Partnership (SHIP) allocation rather than return it to the state or county for reallocation. Commissioners and staff discussed barriers that have limited SHIP uptake, including state income limits, multi‑generational households that disqualify applicants under HUD‑based limits, and paperwork requirements that deter applicants.

Staff and the Affordable Housing Advisory Committee recommended using the funds for a scattered‑site community land trust (CLT) approach that would preserve affordability on existing homes for a fixed period, rather than attempting a large multifamily project that has struggled to align with local site conditions. Commissioners also instructed staff to examine a bonding option that would allow the city to leverage future SHIP allocations to finance a larger workforce‑housing or public‑private partnership (P3) project.

Commissioners and staff noted that prior outreach and open houses have not solved the eligibility or documentation challenges. Staff pointed out that SHIP rules and income limits derive from federal HUD calculations and state program rules; some policy fixes would require state changes. Staff said some residents decline because of repayment liens or because adult household members push incomes above limits.

Direction and next steps: commissioners gave staff consensus to keep the SHIP funds in the city’s control, pursue CLT and developer/P3 bond options, and return with more detailed options and a recommended approach for council consideration. Staff said they will return in about 30 days with proposals, including an analysis of bonding capacity, potential partners for a P3 or CLT and continued outreach plans targeted to eligible households.

Commissioners also discussed potential short‑term uses of funds, including scattered acquisition and rehabs that would attach long‑term affordability covenants to land held by a CLT.