Phoenix City Council approves Housing Trust Fund policy to back affordable housing programs

The Phoenix City Council unanimously approved a policy framework for the Phoenix Housing Trust Fund on Nov. 18, establishing how the city will administer and deploy a newly created dedicated fund to create and preserve affordable housing.

Housing Director Titus Matthew said the fund was established in May and currently holds approximately $3,500,000, including $2,000,000 in American Rescue Plan Act interest earnings, and is intended to be a flexible local tool to “accelerate the creation and preservation of affordable housing.” The policy approved by council lays out permissible funding sources, administration by the Housing Department, and priority uses tied to households at or below 80% of area median income (AMI), with additional emphasis on households at or below 50% AMI.

The approved framework lists permitted uses such as down-payment and homeownership assistance, preservation and strategic acquisition of multifamily properties, a revolving loan fund for predevelopment and construction costs, and gap financing for both city and private affordable housing projects. Deputy Housing Director Samantha Keating described program parameters that staff may deploy in future funding rounds: example subsidies ranging from $25,000 for down-payment assistance to $2,000,000 for a gap financing award, with funding delivered as low-interest or forgivable loans or grants and affordability terms scaled to the amount of assistance (for example, five years for small down-payment aid and 40 years for larger multifamily deals).

Council members sought clarity on compliance and enforcement. Councilwoman Stark asked who would enforce deed restrictions intended to secure long-term affordability; staff said the Housing Department would model enforcement on existing city loan programs, using inspections, audits and compliance teams to verify affordability terms. "We have a team that ensures compliance for affordability is maintained," Housing Director Titus Matthew said.

Several council members urged the city to pursue permanent funding sources so the trust fund can scale. Vice Mayor (speaker) and others pressed staff on the figure that the presentation identified as a gap of roughly 59,000 affordable rental units for households at or below 50% AMI; staff confirmed that the gap refers to rental units. Matthew said jurisdictions with larger, recurring allocations — for example, annual general-fund contributions or bond proceeds — have been able to scale housing trust funds, and he suggested the council consider options such as allocating a portion of future bond proceeds or annual general-fund set‑asides to meaningfully scale investments.

Public testimony supported coupling funding with onsite services. A public commenter, Craig, urged that funded projects include on‑site management and tenant navigation services to ensure developments operate as assets to neighborhoods.

Council voted to approve the policy by roll call, recorded as a 9-0 vote. The Housing Department and city manager’s office told the council they are working with budget staff and will return in the spring with more detailed recommendations about permanent funding options and next steps for program rollout tied to the city’s budget cycle.

Next steps: staff will develop program documentation for specific funding rounds, identify affordability terms and subsidy levels for each program type, and return to council with recommendations for stable funding sources in the spring budget process.