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Faith groups press county to reallocate surtax revenues for rental housing; staff and experts urge alternative gap-financing approach

2313873 · January 28, 2025
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Summary

Faith-based advocates asked the Leon County Commission to redirect 20% of the county's infrastructure surtax to a land-acquisition program for affordable rental housing; county staff and housing finance advisers cautioned the surtax is restricted and urged targeted gap financing instead.

Members of the Capital Area Justice Ministry and several residents urged the Leon County Board of County Commissioners to reallocate 20% of the county's portion of the infrastructure surtax (roughly $1.2 million) to acquire land for affordable rental housing that would set aside units for very low- and extremely-low-income households.

CAJM co-chairs and multiple speakers framed the request as a moral imperative and described personal experiences of housing instability. Several speakers gave first-hand testimony: Shantara Tisdale described working two full-time jobs while paying more than 50% of her income for housing; Reverend Sylvia Jones and others recounted relatives or community members who became unhoused.

County staff and the Housing Finance Authority's financial advisor, Mark Hendrickson, responded that Leon County already pursues an array of rental development tools and has invested in bond and gap financing that contributed to roughly 1,200 affordable rental units in the pipeline. Staff outlined the county's work: millions in tax-exempt HFA bonds, approximately $5.8 million in county gap-financing from federal allocations such as ARPA and ERA, SHIP-funded rental development programs, and use of the Live Local Act incentives.

Hendrickson told the board that while additional funds would allow more units overall, the specific CAJM proposal to reallocate surtax revenue for land acquisition would largely shift unit income set-asides within projects already planned instead of creating additional units. He recommended gap financing or a notice-of-funding-availability model to get more units across the finish line.

Staff also noted legal and practical limits on surtax money: infrastructure surtax receipts are materially restricted and can only be used for land acquisition under the county's interpretation, which would exclude other project costs such as construction. Staff cautioned that using surtax funds could preclude aiding some projects where construction costs or other gaps are the limiting factor.

Several commissioners urged CAJM and county housing partners to meet and seek common ground. Commissioner Maddox proposed that CAJM meet with the HFA board to try to align goals; Mark Hendrickson said the HFA would welcome such conversations. Staff told the board they would provide a fuller update as part of the 2026 budget workshop; no final board vote on CAJM's proposal occurred at the meeting.

Public commenters and CAJM leaders asked the board to adopt the proposal as part of the 2026 budget; county staff recommended accepting the presentation and working collaboratively to explore best uses of available housing funds.