Atlanta Affordable Housing Trust Fund Overhaul Heads to Full Council Despite Mayoral Concerns
Atlanta, GA – A proposed overhaul of Atlanta’s Affordable Housing Trust Fund is advancing to a full City Council vote on Monday, despite strong reservations from mayor Andre Dickens’ administration. The legislation, spearheaded by Matt Westmoreland – a key figure in the fund’s creation – aims to redirect trust fund dollars towards directly funding affordable housing projects and supporting housing nonprofits.
However, Chief Financial Officer Mohamed Balla warns the changes could jeopardize the city’s ability to issue crucial housing bonds and maintain staffing for existing housing programs.Balla argues the current system, utilizing trust fund revenue for debt service and payroll, actually maximizes the city’s capacity to finance new housing development.
“For every $7 million in debt we service, we can issue $100 million in Housing or Homeless Opportunity Bonds,” Balla explained, suggesting a shift in funding could force cuts to other essential city services like police and fire departments.
The city only began using the housing trust fund,rather of the general fund,to pay down bond debt in February of this year. This move, Balla contends, has already allowed Atlanta to expand its bonding capacity. Since Fiscal Year 2024, the city has taken on $150 million in bond debt for housing initiatives, including a $100 million Housing opportunity Program bond issue approved in FY 2024 for five projects, and a subsequent $50 million Homeless Opportunity Project bond issue in FY 2025 to create 500 rapid rehousing units and 200 permanent supportive housing units.
Prior to the trust fund’s establishment in January 2022, the city’s housing bond issuances were significantly smaller – $40 million in 2017 and $35 million in 2007.Balla stated definitively, “We would not have been able to expand [bond issuances] without the Affordable Housing trust Fund.” The trust also enabled the city to increase a $50 million FY 2021 Housing Opportunity Program bond issue to $100 million in FY 2024.
Westmoreland, however, prioritizes direct housing construction, particularly for those earning 50% of the area median income (AMI) and below. “My North Star is the construction of housing…,” he said in an October interview with Atlanta Civic circle. “The general fund is an appropriate place to fund the salaries of people who are focused on this work.”
Acknowledging the concerns raised by the mayor’s office, Westmoreland indicated he is open to adjustments to the proposed spending caps on bond payments and salaries. “We’re talking through it on a daily basis and figuring out where everybody’s pressure and pain points are,” he said, adding that negotiations are ongoing.
If approved, the legislation could be adopted as early as December 1st.