Title
Dedicated Affordable Housing Funding Options
Discussion/Direction/Action: In furtherance of Policies 1, 2, and 3, of the recently adopted Prosperity Initiative (Pima County Board of Supervisors Policy E 36.2, Reducing Generational Poverty and Improving Individual and Community Wealth), directing the County Administrator to come back to the Board at our August 19, 2024, Board Meeting with initial options vetted by staff for the establishment of a dedicated Pima County Housing Trust Fund, for the development and preservation of affordable housing in Pima County. Such Fund, which could have a single or multiple funding sources, should be able to achieve annual combined revenues for affordable housing of at least $10 million per year to start (FY2026), with the ability to grow to meet increased demand in future years.
Potential funding mechanisms to evaluate and present to the Board for discussion and further direction on August 19th may include any one, or combination of, the following: (A) a portion of the primary property tax dedicated to affordable housing (similar structure to PAYGO policy), (B) a new secondary property tax for affordable housing backed by bonding, (C) Document Recording Fees, (D) voluntary Developer Impact Fees (similar to the Tempe model), (E) a Pima County sales tax dedicated to affordable housing, and/or (F) other options that could be achieved through a vote of the Board of Supervisors and/or the electorate. (District 2)