Housing Authority presents $99.8 million budget as it phases out public housing and invests in new units

Mary Rumbaugh, director of Health, Housing and Human Services, and Shannon Callahan, Housing and Community Development director and HACC executive director, presented the Housing Authority’s proposed FY26–27 budget—just under $100 million—a decline of roughly $27 million (about 22%) from the prior year. Officials said the reduction primarily reflects the wind‑down of Metro bond expenditures and a repositioning strategy that is shifting the agency away from an aging public‑housing model toward a voucher‑and‑new‑development approach.

Staff highlighted restricted proceeds of about $25.9 million from scattered‑site property sales that are budgeted for reinvestment in future affordable housing development under HUD rules. The repositioning plan includes a multi‑year strategy to reduce operating reliance on public housing while ramping up new construction: HACC reported 411 units already complete, 255 under construction and 309 in predevelopment. The agency’s moving‑to‑work designation was credited with providing flexibility for local programs, and staff said 15 families had purchased homes through a home‑savings initiative launched last year.

Committee members asked about waiting lists, voucher availability and shelter capacity. Staff said they had recently opened a waitlist for project‑based vouchers tied to specific developments and that the housing choice voucher waitlist remains closed because the program cannot currently issue additional vouchers. The committee discussed a forthcoming Metro IGA that could provide roughly $7 million to expand shelter capacity, and staff noted constraints in federal and state homelessness‑prevention funding.

The committee approved the Housing Authority budget on a recorded vote. Members emphasized the need to balance long‑term sustainability with ongoing program commitments to seniors, families exiting homelessness and households with extremely low incomes.