Atlanta Affordable Housing Trust Fund Overhaul Heads to Full Council Despite Mayoral Concerns
Atlanta, โคGA – Aโ proposed overhaul of Atlanta’s Affordable Housing Trust Fund โขis advancing to a full City Council vote on Monday, โฃdespite strong reservations from mayor โฃAndre Dickens’ administration. The legislation, spearheaded by Matt โฃWestmoreland – a key figure in the fund’s creation – aims to redirect trust โfund dollars towards directly funding affordable housing projects and supporting housingโ nonprofits.
However,โค Chief Financial Officer Mohamed Balla warns the changes could jeopardize the city’s ability to issue crucialโค housing bonds and maintainโฃ staffingโ for existing housing programs.Balla argues theโฃ current system, utilizing trust โfund revenue for debt service and payroll, actuallyโ maximizes the city’s capacity to โฃfinance new housing development.
“For every $7โค million in debtโ we service, โwe can issue $100 million in โคHousing or Homeless Opportunity Bonds,” Balla explained, โsuggesting a shift in funding couldโค force cuts to โฃother essential city services like police andโ fireโฃ departments.
The city only began using the housing trust fund,rather of โthe general fund,to payโ down bond โคdebt in Februaryโ of this year. โThis move, Balla contends, has already โallowed Atlanta to expand โขits bonding capacity. Sinceโข Fiscal Year 2024, โthe city has taken on $150 million in bond debt for housing initiatives, including a $100 million Housing opportunity Programโฃ bond issue approved in FY 2024 for five projects, and a subsequent $50โข million Homeless Opportunity Project bond issue in FY 2025 to create 500โฃ rapidโ rehousing units and โ200 permanent supportive housingโฃ units.
Priorโฃ to the trust โคfund’s establishment in January 2022, theโ city’s housing bond โissuances were โsignificantly smaller – $40 million in 2017 and $35 million in โ2007.Balla stated definitively, “We would not haveโข been โable to expand [bond issuances] without the Affordable Housing trust Fund.” The trust alsoโค enabled the cityโ to increase a $50 million FY 2021 โHousing Opportunity Program bond issue โขto $100 million in FY 2024.
Westmoreland,โฃ however, prioritizes directโข housing construction, particularly for โthose earning 50% of theโ area median income (AMI) and below. “Myโค North Star is the construction โof housingโฆ,” he said in an October interview with Atlanta Civic circle. “The general โfund is anโข appropriateโ place to fund the salaries of peopleโฃ who are focused on this work.”
Acknowledging the concerns raised by the mayor’s office, Westmoreland indicated โคhe โis open โขto adjustments to the โproposedโค spending capsโ on bond payments and salaries. “We’re talking โthrough it on a daily basis and figuring out where everybody’s pressure and pain points are,” heโฃ said, โขadding that negotiations are ongoing.
If approved, the legislation could be โฃadopted as early asโฃ December 1st.
