PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
Body
SUBJECT: Title
Presentation and discussion on the creation of a Workforce Housing Trust Fund
Header
DEPARTMENT: Economic and Community Development
Body
COUNCIL DISTRICTS IMPACTED: 1-6
BACKGROUND INFORMATION:
The Workforce Housing Advisory Committee (WHAC) and City Council convened in a joint workshop on November 28, 2022, to discuss recommended actions and next steps to address workforce housing issues in the community. The WHAC’s primary goal of reducing the percentage of cost burdened households in New Braunfels will be pursued through housing preservation and production strategies, as well as through policy measures to encourage these strategies.
One of the first strategies recommended in the two-year timeline was the creation of a Housing Incentive Fund (HIF) to provide gap financing assistance for identified projects. Commonly referred to as a Housing Trust Fund (HTF), the fund would leverage dollars with private dollars geared to the production and preservation of housing opportunities for identified target households.
Housing Trust Funds are a flexible source of funding that can be used to support a variety of affordable housing activities. They are typically created and administered at the local level and, as such, are not typically subject to the restrictions of federal subsidy programs and can be tailored to address local priorities and needs. The local community can determine eligible activities such as gap financing for new construction to weatherization for older homeowners. Ideally, funding for a trust fund comes from a dedicated revenue source established with the support and approval of key stakeholders. Local communities need to make a series of decisions around three key areas: 1) where revenue comes from; 2) how the trust fund is administered and; 3) what are the eligible activities.
The presentation will discuss background on the housing affordability challenges in New Braunfels, the purpose and goals of a Housing Trust Fund, as well as include a discussion around the best options for governance and strategies to develop and capitalize a fund dedicated to the production and preservation of workforce housing.
A joint-meeting with WHAC, City Council, and the NBEDC is scheduled for September 13th to continue the discussion on the creation of a workforce housing trust fund.