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Community & Neighborhoods budget moves engineering and arts council into department; housing program income proposed for deeply affordable projects
Summary
The City Council heard a presentation on May 29 that proposed transferring engineering (37 FTE, ~$5.6M) and the Arts Council (9 FTE, ~$1.3M) into the Department of Community & Neighborhoods. Staff also proposed using about $8 million in housing program income for a mix of projects including $2.5 million for extremely low‑income housing and $2.71
Department of Community & Neighborhoods (CAN) leaders told the council on May 29 that the mayor’s FY26 recommendation would shift engineering from Public Services and move the Arts Council into CAN to improve coordination between transportation projects and engineering and to align cultural programs. Tammy Hunsaker, CAN director, said the engineering transfer totals about $5.6 million and 37 FTEs; the arts council transfer is about $1.3 million and nine FTEs.
CAN staff also briefed the council on proposed uses of roughly $8 million in available housing program income (loan repayments and similar funds). Proposed allocations included $2.5 million for development of extremely low‑income housing identified in the public safety plan; $500,000 for a home‑repair program (city‑run); $2,710,000 for a community land trust program; $180,000 for a tenant relocation assistance fund; and roughly $2,000,000 to pay down an inactive line of credit. CAN staff noted that funds designated as HUD‑restricted program income were not part of this unrestricted pool.
Other briefing points included a $700,000 vacant‑building maintenance package (see separate article on Fisher Mansion and Fleet Block), continued work on zoning consolidation, an RFQ for Fleet Block redevelopment, and that the arts council would have a separate briefing soon. On youth services, CAN requested a $200,000 one‑time transfer from housing program income to cover summer programming this year because a state funding source for summer grants was not issuing awards; staff said they have applied for fall after‑school grants and expect awards but would return if grants are not received.
Ending: Staff said the department will provide follow‑ups on RFQ responses for Fleet Block, the status of arts council briefings and HUD grant awards for youth programming; councilors asked for additional detail on how transferred divisions will be integrated operationally.
