The City of Phoenix solidified the framework for an innovative solution to accelerate the creation and preservation of affordable housing in Phoenix. The City Council approved a new policy that guides how the City’s Housing Trust Fund will be used now and in the future.
There is a shortage of nearly 60,000 affordable and available rental units in Phoenix, with the greatest need being for very low and extremely low-income families. While federal and state funding provides some support, it is not enough to fill the gap. To help address this urgent need, and ensure everyone can have a safe, affordable place to call home, the City Council created the Phoenix Housing Trust fund in May 2025. It currently has $3.48 million dedicated for funding affordable housing activities in Phoenix and will grow as additional funds are identified. This policy approved today guides how the money is administered, what it can be spent on, and how funding decisions are prioritized so that resources go where they’re needed most.
“Improving access to safe and affordable housing is a priority for me and my colleagues on the City Council,” Mayor Gallego said. “The rising cost of housing is a national issue, and we’re experiencing reduced federal and state support to address it. The City of Phoenix remains committed to doing our part to support families’ ability to thrive, and the Housing Trust Fund is a crucial tool that will grow over time to drive affordable housing development and create pathways to homeownership.”
How the Funds Can Be Used
- Affordable Homeownership Opportunities: Increase City investments in down payment assistance and Community Land Trust programs.
- Preserve and Acquire Housing: Buy existing housing or land to preserve affordability or create new affordable homes.
- Provide Short-Term Development Loans: Offer low-interest, short-term loans to help more affordable housing projects get off the ground.
- Fund City-Led Affordable Housing Projects: Strengthen redevelopment of City-owned land for affordable housing and community spaces.
- Partner on Private Affordable Housing Projects: Fill funding gaps for non-profit and for-profit developers to build or preserve affordable homes.
- Support Innovative Housing Solutions: Allow flexibility to fund creative, community-driven housing ideas.
The City is a leader in increasing affordable housing in Phoenix. In 2020, the City Council approved the Housing Phoenix Plan, with the goal of creating or preserving 50,000 housing units by 2030. The City met that goal more than five years early, and has continued its efforts, with a total of 61,113 housing units through September 2025, with 20% considered affordable to low-income households.
The existing balance in the City’s Housing Trust Fund is funded through a combination of sources including American Rescue Plan Act (ARPA) interest earnings, Government Property Lease Excise Tax (GPLET) and rezoning project payment contributions.
“Today’s policy approval is an important step forward, but it’s only one piece of solving Phoenix’s housing affordability crisis,” said Vice Mayor Ann O’Brien. “As part of my Housing Solutions Plan released in August, I’ve called for a permanent funding source for this Trust Fund so we can sustain and expand these investments long-term. We need predictable funding, streamlined processes, and bold action at every level of government. Phoenix must lead by example—because stable housing is the foundation for everything else, from educational success to economic opportunity to community prosperity.”
“While the Housing Phoenix Plan has been a huge success, we know we cannot remain complacent. Housing affordability is one of the most pressing issues facing Phoenix residents and the Phoenix Housing Trust Fund will help bridge those gaps,” District 3 Councilwoman Debra Stark said. “The policies approved today will help give more people access to a place to call home.”
“The Housing Trust Fund allows us to take a more strategic, long-term approach to housing affordability in Phoenix,” District 4 Councilwoman Laura Pastor said. “With clear priorities and strong oversight in place, these investments will help expand housing choices, preserve existing homes, and ensure we continue building a city where working families can thrive.”
“Phoenix has proven that bold action works, and I promise to continue supporting bold initiatives that directly help our residents,” District 5 Councilwoman Betty Guardado said. “Affordable housing is not just a goal, it’s a necessity. This policy gives us the tools to preserve existing homes, support innovative solutions, and help families build generational wealth through homeownership.”
“Expanding access to safe, stable, and affordable housing remains one of my highest priorities. Since joining the Council, I have diligently championed for the Housing Trust Fund and I am proud to see this policy come to fruition,” District 8 Councilwoman Kesha Hodge Washington. “The Housing Trust Fund gives us a much-needed tool as we strive to increase attainable housing stock, respond to rising housing costs, prevent displacement, and support innovative solutions that meet families where they are. With the adoption of this new policy, we are strengthening our approach to housing investments and assuring that resources are directed where they will have the greatest impact for Phoenix residents.”
