Sarasota County sets $330,000 placeholder for affordable-housing trust fund amid wider debate

Sarasota County commissioners voted unanimously March 25 to place $330,000 in the FY27 budget as an initial deposit to an affordable-housing trust fund while staff develops rules for allowable uses.

The board acted after Kim Racke, director of financial management, presented four scenarios for a dedicated local funding source: a 0.1-mill levy on the taxable value of new construction (estimated at roughly $250,000 in year one under current growth assumptions), a 0.1-mill levy on total taxable-value growth (much smaller in year one), restoring the millage to a prior level (0.0452 mils) which staff estimated could generate about $4.8 million in the first year, and a simple fixed-dollar annual allocation. Racke told the board the county’s Housing and Community Development Fund stood at roughly $3.6 million at year-end, with about $391,000 currently dedicated to affordable-housing activity.

“Using the increase in the millage takes advantage of unbudgeted funds that would occur anyways,” public commenter John Thaxton of the Gulf Coast Community Foundation told the board, urging a small, phased approach that prioritizes land acquisition and a revolving loan fund for final construction financing.

Commissioners pressed staff on scale and sustainability. Commissioner Smith and others said the county has already used a mix of regulatory changes, surplus property transfers and multi-million-dollar appropriations to support housing, and cautioned that a large new commitment could strain other priorities such as infrastructure and public safety if state actions reduce local revenue. Commissioner Knight framed the motion as a measured commitment: “I would make the motion that this board allocates $330,000 to be as a placeholder towards the affordable housing trust fund during the next fiscal year,” he said before the unanimous vote.

The board also requested a staff report that breaks down what is currently in the Housing and Community Development Fund, identifies any statutory or contractual restrictions on use (for example, water-line assistance repayments and existing Newtown allocations), and proposes a process and eligibility criteria for disbursing trust-fund dollars. Racke said staff will bring back options for allowable uses and the mechanics of implementing any dedicated funding mechanism.

The motion does not itself alter millage or create a permanent dedicated revenue stream; it places an amount in the FY27 budget cycle and directs staff to return with details for the board’s further consideration.

What’s next: Staff will prepare a detailed fund breakdown, propose language for allowable uses and present options for either a dedicated millage, fixed annual allocation, or a combination. The board can amend or reverse the placeholder allocation during the normal budget process.

Sources: Remarks and slides presented by Kim Racke, Director of Financial Management; public comment from John Thaxton; board motion by Commissioner Knight.