FY26 Proposed Budget

AFFORDABLE HOUSING FUND

The Affordable Housing Fund was a new fund created during fiscal year 2016. The fund accounts for developer fees and contributions towards the development of affordable housing throughout the City. During 2014, the City issued a Request for Proposals for the development of a parcel of land that the City owns at the corner of Court and Linn Streets, which is also the former site of St. Patrick Catholic Church. In the summer of 2015, C.A. Ventures was selected as the developer for this property. As part of the development of this property, C.A. Ventures agreed to contribute $1,000,000 to create the City’s Affordable Housing Fund. In fiscal year 2018, the City contributed $650,000 to the Affordable Housing Fund. In fiscal years 2019 through 2024, the City has contributed $1,000,000 per year to this fund from the General Fund. Another $1,030,000 is budgeted in fiscal year 2025 and $800,000 in fiscal year 2026. Prior to fiscal year 2020, City Council had directed that affordable housing funds to be split three ways: 1) 50% to the Johnson County Housing Trust Fund, 2) 30% to be held for land banking or emergent situations determined by the City Council, 3) 20% directed to HCDC for LIHTC support or supplemental aid through the CDBG/HOME application process. Starting in fiscal year 2020, City Council changed the allocation of the Affordable Housing Fund as follows: 1) 70% to the Housing Trust Fund, which includes the LIHTC set-aside. 2) 7.5% to an Opportunity Fund 3) 7.5% to the Healthy Homes program 4) 10% to programs to help tenants secure housing. (70% is dedicated to a security deposit program and 30% to a landlord risk mitigation fund) 5) 5% will be reserved for emergent situations. If balance at end of year, converts to the Opportunity Fund. Proposed allocation for fiscal year 2026 is as follows: 1) 62.5% to the Housing Trust Fund 2) 3.125% to an Opportunity Fund 3) 2.105% to the Healthy Homes program 4) 13.75% to programs to help tenants secure housing. (70% is dedicated to a security deposit program and 30% to a landlord risk mitigation fund) 5) 18.52% will be reserved for emergent situations and winter shelter. If balance at end of year, converts to the Opportunity Fund.

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