Athens-Clarke County officials and consultants outline plan to stand up local housing trust fund

Athens‑Clarke County commissioners and outside consultants met for a stakeholder engagement session to review plans to create a local housing trust fund (HTF) that would provide revolving loans for affordable housing projects and programs.

The meeting—framed as Phase 1 of a multi‑phase effort—reviewed the fund’s FY25 seed allocation, recent loans that drew on the fund, legal limits on county management, likely administrative structures, candidate revenue streams and next steps for developing loan products, underwriting and staffing.

Why it matters: Commissioners and consultants said the HTF is intended to provide a flexible, lower‑cost source of capital to make affordable housing deals “pencil out” where federal and state funding either cannot be used or is too restrictive. The HTF is structured as a revolving loan fund, meaning loans are repaid into the fund to be reused for future projects.

Key facts and recent actions - In FY25 the mayor and commission approved a total allocation of $5,441,000 toward HTF‑related activities. That allocation was described in the presentation as split among three lines: LIHTC gap financing ($2,441,000), a single‑family affordable housing fund ($2,000,000) and an acquisition fund ($1,000,000). The presenters said later actions (October votes) approved two loans that drew on that pool: a $3,500,000 loan for North Downtown Athens Phase 2 and a $1,000,000 loan for Classic City Heights. Those loans reduced available balances across the lines. - Presenters reported current approximate balances at the time of the meeting: LIHTC gap financing roughly $11,000, the single‑family fund about $1,500,000 and the acquisition fund just under $1,000,000 (presenter figures in the meeting). The consultants described the fund now operating with roughly $2,400,000 available after the loan activity. - Legal constraints: county attorneys flagged a “gratuities clause” and other limits that prevent Athens‑Clarke County government from directly originating and servicing loans for private real‑estate development. Because of that, presenters said the HTF must be administered by an external entity (examples discussed included a nonprofit CDFI, a nonprofit loan fund or a quasi‑governmental partner). Tammy Boy Hawkins of LEH Consultants summarized: “The whole housing trust fund will be managed by an external entity. It will not be managed by ACCGov.”

Administration, products and oversight - Consultants from LEH (Tammy Boy Hawkins and Anna Hamilton) described three development phases: Phase 1 (stakeholder education and outreach), Phase 2 (lending framework and pipeline development) and Phase 3 (implementation: policies, loan products, underwriting and staffing). They said they will conduct developer surveys and one‑on‑one interviews in Phase 2 to learn what loan products developers and local partners need. - Product types discussed included predevelopment loans, acquisition finance, bridge/construction loans, mini‑perm and down‑payment assistance. Presenters stressed the HTF should be loan‑based and revolving rather than a grant program: “This has to be a self‑sustaining, money generating, revolving loan,” a consultant said. - Oversight options discussed included a loan committee with technical expertise, a nonprofit board and varying degrees of municipal representation. Several peer examples were cited where municipalities seeded funds but outsourced underwriting, servicing or portfolio management to partners such as CDFIs or specialized non‑profits.

Candidate revenue and legal issues - The session reviewed potential ongoing revenue sources to make the HTF sustainable: dedicated portions of local fees, bond financing, developer fees/payment‑in‑lieu, philanthropic and employer contributions, bank or CDFI leverage, and other local taxes or fees. Consultants said they will review Georgia law and local ordinance limits in detail and work with the county attorney on what sources are permissible. - Specific funding programs and legal constraints discussed during the meeting included ARPA (federal grant funds previously used for some housing projects), CDBG/HOME federal programs, SPLOST (Special Purpose Local Option Sales Tax), accommodations tax (ATAX), real‑estate transfer fees and Tax Allocation District (TAD) revenue. Presenters cautioned that legal eligibility varies by revenue source and by state law; for example, some speakers said accommodations tax in Georgia historically was not allowed for affordable housing but cited recent legislative changes in other states as examples to study.

Capacity and technical assistance - Multiple presenters and peer examples emphasized staffing and loan‑servicing capacity as recurring challenges. Several jurisdictions described outsourcing underwriting and servicing to established CDFIs or nonprofit loan funds, or hiring a small dedicated staff while contracting back‑office support. The consultants noted that administration and servicing typically carry fees and that the HTF’s business model must account for those costs so administration does not consume the fund. - The consultants and commissioners discussed offering technical assistance and capacity‑building to smaller local developers and contractors so they can meet underwriting requirements and qualify for loans—examples included business bookkeeping and project readiness assistance.

Next steps stated in the meeting - The consultants will continue Phase 1 stakeholder meetings (including meetings with banks, chamber, housing developers and other institutional partners), collect market and pipeline data, and move into Phase 2 to propose a lending framework and product menu. - Consultants said they will produce recommendations on the HTF’s legal structure, underwriting standards, loan products, eligibility priorities (for example, neighborhood priorities or points for local/small developers), and potential revenue sources that are legally viable in Georgia.

Who spoke (selected) - Tammy Boy Hawkins, LEH Consultants (presenter) - Anna Hamilton, LEH Consultants (presenter) - Tiffany (Commissioner, Athens‑Clarke County) (participant and questioner) - Carol (Commissioner, Athens‑Clarke County) (participant and questioner) - Melinda (Staff member, Athens‑Clarke County) (participant) - Courtney (Staff attorney, Athens‑Clarke County Attorney’s Office) (referenced by presenters)

What was not decided - No formal action was taken at the meeting to adopt loan policies, select an administering entity or commit new recurring revenue streams. The meeting was presented as an education and outreach session to inform those next formal steps.

Ending note - Presenters and commissioners emphasized that standing up the fund will be iterative and requires legal review, staffing/partner choices and community input. Consultants said the HTF is designed to be a flexible, local funding tool that can be paired with federal, state, philanthropic and private resources to increase affordable housing production and preservation in Athens‑Clarke County.