The Finance & Executive Committee on Nov. 25 adopted a substitute ordinance amending the city charter language that governs the dedicated Affordable Housing Trust Fund, narrowing and clarifying allowable uses and implementing a cap on administrative and staffing costs.

Under the adopted substitute, the charter will (1) declare debt service for financing instruments that support housing affordability and housing security as an express use, (2) add a new subsection making administrative and staffing costs an allowed use "as deemed necessary by the chief financial officer, except that no more than 15% shall be used for administrative and personnel costs," and (3) add a separate subsection allowing other uses not contemplated by the code to be approved by City Council on a case-by-case basis.

Department of Law counsel said the substitute also provides legislative definitions for "affordable housing" so that spending decisions must fall within enumerated categories. Members debated whether a 15% administrative cap was higher than originally intended (some members had discussed a 5% figure or lower prior to the substitute) and whether moving more functions to the trust fund would shift costs back to the general fund. The committee voted to adopt the substitute as amended (6 yays, 0 nays, 1 abstention) and agreed to consider the item again on Monday in a committee report context.

The change adjusts how the Affordable Housing Trust Fund may be used and introduces reporting and definitional language intended to increase transparency about spending and staffing supported with trust-fund dollars.