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Committee approves FY25 housing budget, policies and trust fund plan; keeps $500,000 minimum
Summary
The committee recommended approval of the FY25 housing program budget, adopted housing policy goals and the 2025 housing trust fund annual plan, and authorized issuance of the 2025 affordable housing development and tax increment financing (TIF) application. Members elected to retain a $500,000 minimum balance in the housing trust fund.
The City of Portland Housing and Economic Development Committee voted unanimously to recommend the FY25 housing program budget, adopt 2025 housing policies and goals tied to housing trust fund distributions and HOME-funded priorities, approve the 2025 Jill C. Duson Housing Trust Fund annual plan, and authorize issuance of the 2025 affordable housing development and tax increment financing application.
Mary Davis, housing and community development division director, summarized the draft budget and funding sources. "We have, available that hasn't been allocated to other projects, about 863,000, dollars," Davis said. She told the committee the staff package assumes level funding from the U.S. Department of Housing and Urban Development and described three budget categories: administrative set-aside for HOME program administration, a small tenant-based rental assistance program, and funding for affordable housing development. Davis said program income from prior lead-safe-housing loans is expected to be just under $23,000 and that the new lead-hazard grant totals about $2,600,000 with roughly $750,000 for code and life-safety improvements.
Victoria Valente, housing program manager, reviewed policy priorities for distribution of HOME funds, the housing trust fund (land-use code section 17.3), and affordable-housing TIFs. Valente said the HOME program's priority is for "very low income meaning at or below 50% AMI." She said the housing trust fund currently prioritizes uses where other sources are ineligible — for example, missing-middle workforce housing up to 80% AMI — and the affordable-housing TIF priority remains projects pairing LIHTC (Low-Income Housing Tax Credit) and projects affordable to households at or below 80% AMI with a preference for 50% AMI.
Committee members debated whether to maintain a $500,000 minimum balance in the Jill C. Duson Housing Trust Fund. Staff reported the fund had about $863,558 available and that maintaining a $500,000 minimum would leave roughly $363,558 available for project applications. Councilor Kate Sykes said she would "rather leave it at 500 and see how it goes." Councilor Sarah McNevich and other members agreed the minimum should remain to preserve an emergency gap-filling resource for affordability covenant preservation or to respond to unexpected capital gaps in active projects.
The committee also discussed changes to the affordable-housing TIF application process proposed by staff. Victoria Valente said the 2025 application would require planning-board approval and a MaineHousing notice-to-proceed for projects requesting HOME or housing-trust funding before TIF submission; staff would notify applicants of missing materials and expect applicant reimbursement of city legal and underwriting fees associated with trust fund and TIF requests. Greg Watson said these changes aim to present more fully formed and finance-ready projects to city decision-makers and to reduce last-minute requests that force the city to commit resources in short timeframes.
Votes were taken separately on each item. All motions passed by roll call (Councilor Kate Sykes — yes; Councilor Sarah McNevich — yes; Chair Pius Ali — yes). Staff will forward the recommended budget, policies, trust fund annual plan and application materials to the full City Council and incorporate committee direction to maintain the $500,000 minimum in the annual plan.
