Atlanta Mayor Proposes $17M for Affordable Housing Trust Fund in New Budget
The city of Atlanta is looking forward to a major uplift in its affordable housing initiative with Mayor Andre Dickens’ proposed FY25 budget, which introduces a hefty $17M for the city’s affordable housing trust fund. The budget is considerably higher than FY24’s $11.5M allocation and FY23’s $7M funding effort for the same purpose. This accounts for a full 2% of the city’s current $853.8M general fund.
The Affordable Housing Trust: Purpose and Past Performance
The aim of the affordable housing trust fund is to foster the construction of new housing units, as well as provide monetary assistance to lower-income renters and homeowners. Over the past two fiscal years, the latter purpose has been served through the provision of emergency rental and down payment assistance, alongside property acquisitions and construction financing for affordable housing structures. The fund has also been a significant contributor to anti-displacement initiatives.
In terms of its future role, the fund is likely to play a crucial part in the city’s Housing Help Center – a one-stop solution for lower-income citizens requiring aid in navigating Atlanta’s bustling residential market. However, the mayor’s fresh fund allocation is not merely about sticking to the initial plan – it represents a keen effort to promote inclusive growth across the city.
Progressive Funding Strategy
This year’s all-time high $17M grant to the affordable housing trust takes inspiration from the 2021 legislation establishing the fund. The regulation initially mandated a 1% contribution from the general fund, which was increased to 1.5% in FY24, and finally to a never-seen-before 2% for FY25 and onwards.
Funding Hurdles And Future Expectations
Despite its promising prospects, ensuring full funding for the trust has been a tough nut to crack. In 2018, some relief came in the form of a Gulch development deal with California-based real estate investment firm, CIM Group. In a promise to provide an impressive $28M for an affordable housing trust, CIM Group won generous tax reliefs from the city.
The establishment of the trust, guided by an ordinance adopted by the city council in October 2021, brings with it a host of new possibilities. For instance, the city aims to employ the fund to convert a downtown office building, Two Peachtree, into residential lodging. There are also hopes to expand the scope to spur the construction of affordable housing on city-owned land through private developer partnerships.
Planning Department Budget Sees Increase
Apart from that, Mayor Dickens’ draft budget also increases the Department of City Planning’s funding to $26.6M, a leap of $2.89M. The supplementary budget will accommodate 43 additional full-time staff positions in the department, escalating the total personnel strength to 341.
Local housing advocates are hopeful that the revision of decades-old zoning codes will stimulate affordable housing production. But more importantly, with the city council holding briefings and hearings on the budget before the June 3 vote, this is Atlanta citizen’s’ opportunity to not just comment on the budget but ideally shape it, as the city continues to actively solicit remarks and inquiries from residents at budgettalk@atlantaga.gov
