Mayor Gallego, City Council Advance Phoenix’s Housing Trust Fund

On November 18, Mayor Kate Gallego and the City Council unanimously prioritized the Phoenix Housing Trust Fund and worked to increase affordable housing in the city.

The city’s elected officials developed guidelines and strategies for the Trust Fund, continuing the City’s work to expand housing options throughout the city. 

“Having a safe, affordable place to live is essential,” Gallego said. “Housing costs have gone up throughout the country, including here in Phoenix.  That's why I’m committed to doing more than ever to lower costs and making housing affordable for every Phoenix resident.” 

Gallego’s and the Council’s Housing Trust Fund will focus on: 

• Affordable Homeownership Opportunities: Increase City investments in down payment assistance and Community Land Trust programs 
•  Preserve and Acquire Housing: Buy existing housing or land to preserve affordability or create new affordable homes 
• Provide Short-Term Development Loans: Offer low-interest, short-term loans to help more affordable housing projects get off the ground 
• Fund City-Led Affordable Housing Projects: Strengthen redevelopment of City-owned land for affordable housing and community spaces 
• Partner on Private Affordable Housing Projects: Fill funding gaps for non-profit and for-profit developers to build or preserve affordable homes 
• Support Innovative Housing Solutions: Allow flexibility to fund creative, community-driven housing ideas 

The Fund will start with a balance of $3.5 million and can secure funds from many sources, including General Fund contributions, bonds, proceeds from property leases, and philanthropic donations.  

With today’s action, Gallego continues to push for more affordable housing options.  In 2020, she and the City created the Housing Phoenix Plan and set a goal to create or preserve 50,000 housing units by 2030. The City met that goal more than five years ahead of schedule.  

In Phoenix, more than 61,000 homes have been built or preserved since 2020, and about 20 percent of those are affordable.  

Phoenix residents continue to support affordable housing investments.  Voters approved using $55 million in General Obligation bonds to support affordable housing.  

Phoenix continues to prioritize ways to promote housing, including investing in communities with pedestrian access to public transportation, incentives for affordable housing such as the Affordable Rental Housing Loan Program and GPLETs, and updating building codes.