JACKSONVILLE, Fla. – In a step toward tackling affordable housing and homelessness in Duval County, the Jacksonville City Council approved an ordinance allocating $1 million from the city’s contingency fund to support affordable housing projects.
The funds will go to the Jacksonville Housing Finance Authority (JHFA), which will match the city’s contribution to create a $2 million revolving loan pool for multifamily housing developments.
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The ordinance, introduced by Councilmember Joe Carlucci, temporarily waives Section 111.920, allowing city funds normally reserved for homelessness initiatives to support affordable housing.
Oversight of the fund will be handled by the Neighborhoods Department, and an interlocal agreement between the city and JHFA will ensure compliance with reporting and maintenance requirements for the next 20 years.
During council discussions, Councilmember Ron Salem noted that the city had previously appropriated $3.64 million for homelessness initiatives. Of that amount, $1 million was allocated to the Fire and Rescue Department to support its homeless response team, leaving $1.6 million for future homelessness projects. Salem highlighted that this new $1 million allocation to JHFA would not impact funds set aside for the city’s homelessness response efforts.
Councilmember Nick Howland invited JHFA’s board chair, Barney Smith, to explain how the funds would be used. Smith outlined JHFA’s recent efforts to provide gap financing for affordable housing and described how the new revolving loan fund would provide long-term (15-year) loans for developers.
Smith explained that the revolving loan pool would allow investments in housing without putting immediate pressure on developers to repay loans quickly.
Summary of the new affordable housing loan fund:
- Total Funding: $2 million (city’s $1 million matched by JHFA)
- Fund Purpose: Revolving loan fund dedicated to multifamily affordable housing projects in Duval County
- Term: Loans will have a 15-year term, providing developers with a longer window for repayment
- Oversight: Neighborhoods Department; annual reporting by JHFA
- Duration: JHFA is required to maintain the fund for at least 20 years.
- Waiver: Temporarily waives Section 111.920 restrictions to allow the use of homelessness funds for affordable housing development.
Councilmember Raul Arias praised the expected return on investment for the city adding that such programs create lasting benefits for the city.
