Council considers $900,000 amendment to seed small-developer housing loan fund after ARPA contract delays

Tulsa staff asked councilors to approve a $900,000 budget amendment to create or seed a revolving loan fund aimed at small housing developers. The fund is intended to enable smaller firms to build or renovate residential units that larger developers might not pursue.

Staff said the work began with an ARPA proposal and the city received a notice of award in October 2023 but that contract execution has been delayed. Staff described earlier uncertainty about whether the award had to be forgivable (which would prevent a revolving fund) and said legal and grant teams ultimately shifted the plan to a revolving loan structure.

To finance the program, staff proposed using loan-repayment proceeds from Vision 2025 downtown and neighborhood funds and the city’s existing downtown development/redevelopment fund (DDRF). Staff said that after the proposed appropriation, the identified pot would have roughly $8.9 million available for future projects. Councilors raised concerns that dedicating repayments to a new, citywide housing fund could reduce dollars available to DDRF projects and asked staff to bring additional backup showing sources and intended uses.

Staff said about eight small developers are trained and ready for funding and that the revised contract language is intended to protect program intent while enabling a revolving structure. Staff emphasized the program’s intent to focus on affordable residential projects inside Tulsa city limits and on income eligibility for tenants for assisted units.

Councilors asked staff to return with clearer backup on sources and uses and with a draft contract for review. There was no final vote recorded on the amendment during this meeting.

Ending: Staff will provide additional backup material and a proposed contract for council review before any final appropriation.