Phoenix City Council Expands Affordable Housing by Approving Housing Trust Fund Investments

The Phoenix City Council approved a comprehensive spending plan for how the $15 million in the City's Housing Trust Fund (HTF), will be used to create and preserve affordable housing, support homeownership, and reduce barriers to housing development.

The HTF, created by the City Council in 2025, serves as a dedicated resource to advance affordable housing goals and address the city's ongoing housing needs. The approved funding allocations support key priorities identified in the Housing Phoenix Plan (HPP), the City's strategic plan to help increase housing in Phoenix.

“Today, the City of Phoenix took meaningful action to reduce housing costs,” Mayor Gallego said. “These targeted investments will help developers create more affordable housing and assist residents with downpayments and eviction prevention. Everyone deserves to have a place to call home. That’s why I remain committed to lowering costs and making housing affordable for every Phoenix resident."

How the Housing Trust Fund Resources Will Be Invested

The approved allocation plan directs the $15 million in available resources toward six housing priorities:

• $6 million for Affordable Housing Gap Financing

Competitive funding will support private and nonprofit affordable housing developments through low-interest loans, helping projects close financing gaps and move forward. Individual projects may receive up to $1 million.

• $4 million for City Housing Redevelopment Projects

Funding will support HPP redevelopment initiatives on City-owned properties and other planned City housing projects through low-interest loans that will be repaid to support additional projects in the future.

• $2 million to Offset Plan Review and Permit Fees

The City will help cover plan review and permitting fees for qualifying affordable housing developments, offering up to $300,000 to eligible low-income tax credit projects. By reducing development costs, the program aims to encourage the construction of additional affordable housing units.

• $1 million for Pre-Approved Housing Plans

Funds will support pre-approved housing plans for single family, middle housing and other infill housing types. Pre-approved plans will be made available at no cost to the property owner. This program is intended to shorten permitting timelines, reduce design costs, and help accelerate construction of additional housing options.

• $1 million for Homeownership Programs

Funding will support new home buyers, through down payment assistance or programs that create permanently affordable homeownership opportunities for Phoenix residents, such as the Community Land Trust.

• $1 million for Eviction Prevention

In collaboration with the City's Human Services Department (HSD), funding will support the Eviction Legal Services program, which helps stabilize households, prevent displacement and lessen the barriers that eviction can cause to renting in the future.

Supporting the Housing Phoenix Plan

The HTF investments build on progress under the Housing Phoenix Plan which has supported the creation or preservation of more than 71,000 housing units, surpassing the plan’s goal of 50,000 units by more than five years. Several unique initiatives contributed to the plan’s success including redeveloping City-owned land, strengthening public-private partnerships, and creating permanently affordable homeownership opportunities through the Community Land Trust. The new funding priorities will advance these efforts while addressing Phoenix’s estimated shortage of 59,000 affordable and available rental units for households with the greatest needs.

"Phoenix has demonstrated that when we make housing a priority, we can achieve meaningful results. While reaching the Housing Phoenix Plan goal ahead of schedule is an accomplishment worth celebrating, we know the work is far from over," said Vice Mayor Kesha Hodge Washington. "The Housing Trust Fund gives us a powerful local tool to invest in attainable housing, support working families, create pathways to homeownership, and help residents remain in the communities they call home. Today's allocation aligns with the needs that have been expressed by the community. These investments reflect our commitment to turning resources into real housing opportunities while building stronger neighborhoods and a more affordable future for Phoenix residents."

“We won’t close Phoenix’s gap of 59,000 affordable housing units unless we make it easier to build," Councilwoman Ann O'Brien said. "This plan uses gap financing, lower fees and pre-approved plans to cut red tape and get more homes built, consistent with policies I’ve continued to champion along with many of my colleagues. When we increase stable housing, we increase economic opportunity and community prosperity."

“Housing is a right, and this fund puts real dollars behind keeping Phoenix families housed," said District 7 Councilwoman Anna Hernandez. "From eviction legal help to permanently affordable homes through the Community Land Trust, these investments help people stay in the communities they've built."