PHOENIX — The Phoenix City Council has approved a plan to invest $15 million from the city’s Housing Trust Fund in affordable housing development, homeownership assistance, and eviction prevention.

The spending plan directs money toward six priorities, including financing for affordable housing projects, redevelopment of city-owned property, and programs intended to reduce construction costs. The city established the Housing Trust Fund in 2025 to support its broader Housing Phoenix Plan, which aims to increase the city’s housing supply. File #: 26-2221

Mayor Kate Gallego said the investments will help developers build affordable housing while supporting residents through down payment assistance and eviction prevention.

“Everyone deserves to have a place to call home,” Gallego said in the city’s announcement.

How the $15 Million Will Be Used

The largest share of the fund, $6 million, will go toward affordable housing gap financing. Private and nonprofit developers will be able to seek low-interest loans to help close financing gaps, with individual projects eligible for up to $1 million.

Another $4 million will support housing redevelopment on city-owned properties and other planned city housing projects. The funding will be provided through low-interest loans, with repayments intended to support additional projects.

The plan also includes:

• $2 million for plan review and permit fees: Qualifying affordable housing developments could receive help covering fees, with up to $300,000 available to eligible low-income housing tax credit projects.
• $1 million for pre-approved housing plans: The city plans to make designs for single-family homes, middle housing, and other infill housing available to property owners at no cost. The program is intended to reduce design expenses and shorten permitting timelines.
• $1 million for homeownership programs: The funding will support new homebuyers through down payment assistance or programs that create permanently affordable homeownership opportunities, including the Community Land Trust.
• $1 million for eviction prevention: In collaboration with the city’s Human Services Department, the money will support eviction legal services intended to help households remain housed and reduce barriers to future rentals.

Addressing Phoenix’s Housing Shortage

City officials said the investments build on the Housing Phoenix Plan, which has supported the creation or preservation of more than 71,000 housing units. That exceeds the plan’s goal of 50,000 units by more than five years, according to the city.

Despite that progress, Phoenix estimates it faces a shortage of 59,000 affordable and available rental units for households with the greatest needs.

Vice Mayor Kesha Hodge Washington said the trust fund will give Phoenix a local tool to support working families, expand homeownership opportunities and help residents stay in their communities.

Councilwoman Ann O’Brien emphasized the development provisions, saying gap financing, reduced fees and pre-approved plans can help make it easier to build housing.

District 7 Councilwoman Anna Hernandez highlighted the eviction legal services and Community Land Trust investments, saying they can help families remain in the communities they have built.

The city’s 2026–27 budget added $6.6 million to the Housing Trust Fund, bringing its available resources to approximately $15 million. File #: 26-2221