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Assembly directs staff to work with Gaston Human Services to return $2 million appropriation

Juneau Assembly Finance Committee · February 5, 2026
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Summary

The Assembly Finance Committee voted unanimously to direct staff to work with Gaston Human Services to return a $2,000,000 CBJ appropriation previously authorized as local leverage for a 51‑unit supportive‑housing project after federal funds fell through; staff will accept future funding requests when the project advances.

The Assembly Finance Committee on Feb. 4 voted to direct staff to work with Gaston Human Services to return the Assembly's previously appropriated $2,000,000 for a 51‑unit permanent supportive‑housing project that is delayed after federal grant opportunities changed.

Manager Kester told the committee that Gaston Human Services had used the city appropriation as an intended first-dollar leverage to attract federal funding; those federal grants are no longer available and the project timeline has slipped from a planned ground‑breaking this summer to a five‑to‑10‑year horizon. He asked the committee to authorize staff to bring the funding back to CBJ so it can be used for other needs until Gaston Human Services is ready to request funds again.

Mayor Walden moved to "direct staff to work with the Gaston Human Services to return the Assembly's $2,000,000 grant, and come back to finance committee with a future funding request for the project when they're closer to being developed." Assemblymember Miss Hughes Gandy objected briefly to ask a staff question about the source (general fund vs. an affordable‑housing fund); staff said the appropriation is believed to be from the general fund. With no sustained objections, the motion passed by unanimous consent.

The committee instructed staff to coordinate with Gaston Human Services and present options for re‑allocating the appropriation or returning it to reserves; Gaston Human Services may reappear before the Assembly with a future funding request when the project secures additional grant funding or is further along in development.