Committee repurposes prior-year housing funds to support homebuilding and down-payment assistance

The Neighborhoods committee on Feb. 17 approved ordinance 2026-0065 to revise exhibit attachments and repurpose prior-year SHIP (housing) funds for single-family development and down-payment assistance. The committee recorded a 7-0 vote in favor.

Administration staff said the amendment corrects project codes and reattaches a revised 2023–24 budget. Mr. Jeffrey (housing staff) told the committee the proposed reallocation would set aside about $1.5 million for construction financing to help build homes for very-low-income households (roughly 50% AMI and below) and $500,000 for down-payment assistance (DPA) for homes expected to be built under the program.

Jeffrey said the city has seen a larger SHIP allocation in recent years and must meet statutory targets (percentages reserved for very-low-income and other categories). He described steps already taken to speed expenditure, including outsourcing some rehabilitation work, and noted the city must request an extension from the state only after June if funds remain unencumbered; he and council members agreed the amendment will help expend dollars before deadlines.

Colonel Miller and Council Member Clark Murray asked whether staff had explored state extensions; Jeffrey said the city has been in conversations with the state's technical-assistance provider but cannot formally apply for an extension until June, when the city can show the amount unencumbered and submit an action plan to expend the funds.

The committee approved the amendment and the ordinance by roll call (vote recorded: seven yays, zero nays).