Board hears proposal for a housing trust fund to seed affordable housing projects

Mark Edmonson, chair of the Affordable Housing Committee, presented the board with a proposal to establish a municipal housing trust fund as an implementation tool from the town's affordable housing plan.

"The idea of a housing trust fund is pretty much of a simple idea," Edmonson said, explaining the fund would set aside a modest pool of money that could be used to underwrite feasibility work, septic or site analyses, or modest subsidies to developers who include affordable units. He emphasized the proposal is not a large supply solution on its own but is intended to signal town commitment and make Madison more competitive for grants and partnerships.

Town staff and committee members described a range of financing approaches used in nearby towns — donations, grant matches, permit‑fee allocations or targeted building fee transfers — and noted that some examples fit larger, more actively developed municipalities better than Madison. Erin Fiss, the town's technology director, said similar ordinances in Fairfield and Westport give the legislative body discretion on uses and create an advising committee to weigh recommendations.

Board members pressed on funding mechanics and limits. Several members said they would not support increasing property taxes to fund the trust and asked staff to explore non‑tax revenue streams — for example, dedicating a portion of building permit fees, seeking private donations, or using grant matches. Members also raised infrastructure constraints (septic and wastewater limits) and the need to set clear board priorities — who the fund is intended to serve (workers, seniors, downsizers) — before making commitments.

No ordinance was adopted. The board directed staff and the Affordable Housing Committee to draft sample ordinance language, clarify governance and possible funding streams, and return with a recommendation after the state special legislative session and further committee work.